As far as the gaming industry is concerned, China is on the list of most lucrative markets. Nowadays, many international companies are getting into this market. Some of them are acquiring shares in gaming vendors from China, while others are sponsoring teams of professional players. In this article, Handy looks at the growth of the gaming industry in China. Let’s find out more.
The popularity of eSports
Although there are many reasons why the gaming industry in China is experiencing immense growth, one of the primary reasons is the increasing popularity of eSports. eSports is a competitive section of the industry due to the participation of hundreds of thousands of players in gaming tournaments. Also, these game tournaments are broadcast online for the whole world to see.
Global digitalization has introduced numerous business opportunities for the whole world. And Chinese enterprises are all set to leverage digital transformation from the introduction till the decline stage of a product cycle.
In May 2019, for instance, Tencent Holdings revealed its industrial internet strategies. It happened at the inauguration of the Global Digital Ecosystem Summit held in Kunming. During the inauguration, they covered the whole product cycle of the game product, which included research, design, development, distribution, and after-sales activities.
Finally, China gave permission for new video games from one of the top video game publishers of the world, Tencent. This good news came after a government freeze that lasted 10 months. In 2018, the Chinese market experienced a little slump. But now, the gaming industry in China is ready to take off.
According to news, Chinese authorities are going to approve the launch of up to 3,000 games per year.
Another contributor to the Chinese gaming industry is the rapid popularity of mini-games. These mobile games are part of popular mobile apps like WeChat. Players can enjoy these games without the need to install another app.
Since playing these games is a piece of cake, they can attract the attention of millions of followers from across China.
Modern cable networks
The modernization of cable networks across the country is another contributor to the growth of the Chinese gaming market. In China, cable operators use the power of DOCSIS 3 to provide up to 100 Mbps of download speeds. Therefore, players can enjoy super-fast cloud gaming services.
In addition, the development of cloud infrastructure offers plenty of communication, storage, and computing resources. And the good thing is that these resources are low-maintenance, cost-effective, and reliable.
As time goes by, more and more gaming apps use cloud computing resources. In China, gaming services are the fastest-growing sector as far as cloud computing is concerned.
In 2020, COVID-19 caused scope scale-downs and long in-game delays. So, the console gaming sector may not be able to enjoy as much attention as the mobile platform. Although the ongoing pandemic has caused immense losses to China, companies with an online business structure have been able to make sales and avoid huge losses. Today, game designers in China are changing their monetization models to maintain their revenue streams.
So, Handy predicts that the gaming industry in China is going to make some real progress down the road. Let’s see what the future brings for us.