Growth opportunities for gaming companies with
an inside track in the Chinese speaking regions speak for themselves.
China is a market of over 1.2 billion people and over 7% annual
GDP growth. This, together with recent admission to the World Trade
Organization and hosting of the 2008 Olympic Games indicate strong
growth for the foreseeable future.
China’s buoyant economic performance is reflected in the
growth in Internet usage paving the way for excellent prospects
in the gaming industry.
China: The Largest Internet Market within Four Years
China is on track to become the world's largest Internet market
within the next four years. The world's most populous nation is
now second behind the United States in terms of people online.
The Internet Society of China expects surfers to hit 78 Million
(December 8, 2003)
According to a report on the development of the Internet in China
given by Hu Qiheng, chairwoman of the Internet Society of China,
at the Second Internet Conference of China. The number of Internet
surfers in China is expected to reach 78 million by the end of December,
with 500,000 websites and 30 million online computers in China also
According to SINA.com, by 2006, China will make up 53.1% of Asia's
Internet Users, 51.2% Internet buyers, and 48.6% of ecommerce.
The Online Gaming Industry
The strong growth in Internet usage will be reflected in online
gaming. According to Datamonitor the market value of the online
gaming industry in 2001 was $32 million and is expected to rise
to $79 million in 2006. This reflects a compound growth of 10.6%.
According to Christiansen Capital Advisors only 14% of e-gaming
websites are in Chinese while the market potential represents over
19% (including Taiwan) of the total global market potential.
The Majority of Chinese Professionals use the Internet
A survey by Fortune China showed that 61 percent of Chinese businesses
have Web sites, and that the majority of Chinese professionals --
60 percent -- use the Web for business.
Wireless is set to become a powerful marketing channel.
ZDNet (December 16 2002) reports that there are now over 200 million
mobile phone users in China, up from 167 million in April 2002.
China/Asia demonstrates its propensity to play games online
According to a recent IDC survey of more than 3,600 Net users across
six Asian countries. In China and Malaysia, there are twice as many
online gamers as there are Internet shoppers. Around 43 percent
of Chinese Internet users play games online, while just 16 percent
report that they shop via the Net.
The strong growth in game play is also reflected in wireless gaming
according to two recent surveys
Strong wireless gaming growth is predicted in Asia, as Strategy
Analytics estimates that downloadable games will be the fastest
growing consumer application during 2003 generating $2 billion by
the end of the year.
found that the Asia-Pacific region hosts 70 million mobile gamers,
with wireless gaming revenues totaling $1.1 billion. The subscription
model, followed by pay-per-play, is currently the most popular revenue
model. Together they account for $920 million worth of wireless
gaming revenues in Asia Pacific.