China’s video game industry is worth approximately 83.17 billion RMB (or $13 billion) after growing nearly 40 percent in 2013, according to a report from a Chinese organization called GPC.
Networked games played using local PC software accounted for the majority of Chinese game revenues at 64.5 percent of the total, which might surprise those who would anticipate greater mobile game revenues. But games stored locally are on a decline, having slid around 10 percentage points. Web game market share reached 15.4 percent, 13.5 percent mobile game market, the social gaming market is 6.5 percent, stand-alone games are only 0.1 percent.
Although this might suggest that games are becoming less tethered to PC’s, it’s likely that most web-based games are consumed on conventional computers because of the typical browser capabilities of phones in China.
Still, the presence of web-based games hints at the possibility that graphically intense interactive applications could be delivered from the cloud by having the graphics processing happen in the cloud and stream the resulting images as a smooth video stream to end-user devices. According to a recent study from AppLift and Newzoo, the mobile games market is expected to reach $23.9 billion by 2016, twice its 2013 size.
Cloud-based game streaming services like Steam have enabled many individuals to run on a wide range of internet-connected devices as long as they’re close to edge servers, giving them reasonable latency.
While it’s important to note that many of the companies driving revenue from the Chinese games market, many foreign companies find it difficult to navigate the Chinese market.