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 2018, industry revenue increased at an annualized rate of 25.5% to $45.1 billion...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Report - Industry Investment Chapter

For every dollar spent on wages, management, and research and development in this industry, 44 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.

Additional Insights for the Online Games Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Online Games Industry are

  • Development of new products
  • Ready access to investment funding
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Personal Final Consumption Expenditure - Total and Pervasive Technology - Internet Connections in the Online Games industry impact industry performance..

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    What's in this report

    What is the Online Games Industry?

    Online games are played over the internet using consoles such as personal computers (PCs) and mobile terminals. They may also include features such as multiplayer modes, downloadable content and in-game chat, which can be provided for free or on a fee or subscription basis.

    Industry Products
  • PC client games
  • PC web games
  • Mobile games
  • Other games
  • Industry Activities
  • Developing and updating online games in several types and consoles
  • Maintaining the regular game platforms, and providing a fair gaming environment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Personal Final Consumption Expenditure - Total
  • Pervasive Technology - Internet Connections
  • Service Prices - Internet Prices
  • Systems and Technology - by Industry Sector
  • Age Group (15-34)

  • Current Performance
    Revenue streams and profitabilityIndustry performanceExportsCompeting importsEnterprises and wages
  • Chart: Revenue Growth

  • Industry Outlook
    Enterprises, establishments and wagesExports and imports
  • Table: Online Games Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Games Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Households

  • Key Selling Industries
  • Computer Manufacturing
  • Computer Network Equipment Manufacturing
  • Computer Tablet Manufacturing
  • Smart Phone Manufacturing

  • Products & Services
  • Mobile games
  • PC client games
  • PC web games
  • Other games
  • Chart: Online Games Industry Products and Services Segmentation

  • Demand Determinants
  • Growth in internet users
  • Technological advances
  • Digital age

  • Major Markets
  • White-Collar Workers
  • Self-Employed People
  • Students
  • Blue-Collar Workers
  • Others
  • Company Administrators
  • Unemployed People
  • Government Employees
  • Chart: Major Market Segmentation for the Online Games Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Wages
  • Marketing and advertisement
  • Chart: Cost Structure Benchmarking – Sector vs Online Games

  • Basis of Competition
  • Content
  • Innovation
  • Stability of game servers
  • Rational revenue streams

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Games Industry

  • Industry Globalization
    Tencent Holdings Limited,, Inc., Shanda Games Ltd., Ltd., Perfect World Co. Ltd.,
  • Table: Tencent Holdings Limited - financial performance
  • Table:, Inc. - financial performance
  • Table: Shanda Games Ltd. - financial performance
  • Table: Ltd. - financial performance
  • Table: Perfect World Co. Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Online Games Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Online Games Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • No. of Online Game Players (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Average Revenue Per User (Arpu)
  • A revenue measure calculated as total revenue divided by the total number of users/ subscribers.
  • Html 5
  • The latest mark-up programming language, it is mostly used in website design and game design.
  • Massively Multiplayer Online Game (Mmog)
  • Online game capable of supporting hundreds or thousands of players simultaneously.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Online Games market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Online Games:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Online Games market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Online Games, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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