IBISWorld’s Online Games market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.


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 2017, industry revenue increased at an annualized rate of 22.6% to $27.7 billion...

Industry Report - Industry Products Chapter

Massive multiplayer online games

Massive multiplayer online game (MMOG) offer virtual environments for millions of players to play in. Common types of MMOGs include online role-play games (MMORPG), fighting games (MMOFTG), and first-person shooting games (MMOFPS). MMORPGs tend to have the largest number of players, as they offer comprehensive virtual worlds for players to live, fight, and interact in.

Among all types of online games, players of MMOGs have the highest user stickiness, and MMOGs have the longest life cycle. Normally, game producers need to spend years of time and a large amount of capital on developing an MMOG, but once launched, they can offer steady revenue streams.


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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    Industry Products

    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
    Massive Multiplayer Online Games
    Web Games
    Mobile Online 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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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 profitability
  • Industry performance
  • Exports
  • Competing imports
  • Enterprises and wages
  • Chart: Revenue Growth

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

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Households

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

  • Products & Services
  • Massive Multiplayer Online Games
  • Mobile Online Games
  • Web 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
    Competitive Landscape
    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
    Major Companies
    Tencent Holdings LimitedNetease.com, Inc.Shanda Games Ltd.Changyou.com Ltd.Perfect World Co. Ltd.
  • Table: Tencent Holdings Limited - financial performance
  • Table: Netease.com, Inc. - financial performance
  • Table: Shanda Games Ltd. - financial performance
  • Table: Changyou.com Ltd. - financial performance
  • Table: Perfect World Co. Ltd. - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Online Games Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • No. of Online Game Players (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Why buy this report?

    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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