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Shooter games boost Chinese online game market, as MMORPGs give way

Even as mobile devices take hold and MMORPGs give way to new genres, there's still an opportunity to build a business around online games in China, according to a new report.
Even as mobile devices take hold and MMORPGs give way to new genres, there's still an opportunity to build a business around online games in China, according to a new report. Market research group Niko Partners announced today that it is forecasting China's online PC games market will reach $11.9 billion in 2013, up from $9 billion in 2012. The forecast comes at the end of an intensive study conducted through player surveys, usage data, and top-selling titles. Although the PC market has experienced a sharp drop in demand for social and casual games (which have moved to mobile), Niko Partners have observed a "surge" in interest for web games and shooters. "China's PC online games market has grown from $10 million in 2001 to more than $9 billion as of the end of 2012," says Niko managing partner Lisa Hanson. "Some industry observers say that because MMORPGs have given way to other genres the market is done. That is definitely not true." Some key takeaways from Niko's report on the Chinese PC online games market:
  • Young men aged 18-24 are flocking to shooters in droves, with the ancillary effect of bolstering the domestic internet cafe market.
  • Tencent continues to dominate the Chinese PC online games market, including non-RPG MMOs.
  • Revenue growth is projected to slow over the next five years, but is nevertheless expected to expand by $2 billion annually, making the slow down irrelevant.
The 36-page report is available from Niko Partners' research store.

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