Industry Analysis & Industry Trends
Enterprises within the Online Game industry in China are involved in the production (i.e. design and development of online games) and the operation of online games. Most online game companies combine game development and operations; however, some online game producers sell licenses to agencies, which are then solely responsible for the operation of the games.
The first graphic online game in China, King of Kings, was launched in 1999. Along with the boom of the Internet Services industry (IBISWorld industry report 6020), the Online Game industry has been growing strongly since then. Between 2004 and 2009, revenue for the industry grew at an annualized rate of 51%.
In the five years through 2014, industry revenue increased at an annualized rate of 22.0% to $14.0 billion.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on wages, management, and research and development in this industry, 47 cents are invested in capital, indicating high capital intensity.
As a creative industry, game producers invest a large amount of capital in R&D. Compared to the cost of purchasing operation licenses from foreign producers, the expense of developing games is lower. In addition, domestic games tend to be more attractive than foreign games, since they are more related to Chinese culture.
Depreciation is high in this industry due to the regular replacement of devices. The rapid upgrade of PCs and mobile terminals means that game producers must replace their devices regularly to support their games... purchase to read more