FOR IMMEDIATE RELEASE:
NIKO PARTNERS’ CHINESE VIDEOGAME MARKET FORECAST
Report Highlights Include Double-Digit Growth, Market to
Climb to $2.1 Billion by 2010
San Jose, CA – April 25, 2006 – Niko Partners, a leading
research and consultancy firm on the Chinese gaming market,
today announced results from its latest report showing
impressive growth for the Chinese videogame market in 2005.
According to Niko’s fourth annual report on the market, 29%
of China’s 27 million gamers played games more than 60 hours
per month, which helped contribute to a 23.6% growth rate in
China’s videogame market from 2004 to 2005. The Chinese
market, of which 84% is comprised of online games, now
stands at $683 million. The market is forecast to enjoy a
compound annual growth rate of 24% for the period 2005-2010,
climbing to $2.1 billion.
“Chinese gamers’ passion for massively multiplayer online
role-playing games (MMORPGs) has extended to the casual and
premium casual segments,” said Lisa Cosmas Hanson, managing
partner of Niko Partners. “Premium casual games provide new
gamers greater access to the online game market and open up
an alternate source of entertainment for hardcore gamers.”
Niko Partners projects that premium casual games will gain
in popularity comparable to MMORPGs over the next several
years, achieving 40% of all online revenue by 2010.
Other key findings related to overall China videogame market
growth include:
- Internet Cafés: Gamers access the online gaming
universe an average of 4 hours per day through the estimated
20 million PCs in China’s 265,000 officially licensed and
unlicensed Internet cafés, almost all of which have
broadband access and regularly maintained PCs.
- Adoption of Broadband in Homes: One factor
contributing to the rise in gamers is faster adoption of
broadband in homes, which enabled more gamers to access
online games.
- Increase in Casual Gaming: Casual games, including
puzzle, board and advanced casual games, comprised 20% of
the online market in 2005 and should rise to nearly 40% in
2010.
- Hard-Core Gamers: 29% of all gamers were classified
as hardcore in 2005, up from 20% in 2004. The definition is
based on more than 60 hours of online game play per month.
Social and Cultural Preferences
There are different preferences held by gamers in China,
Niko Partners reports. In particular, gamers enjoy softer
graphics and brighter colors of the games. Socializing and
competing with friends while gaming are primary factors in
the popularity of Internet cafés. When next generation
consoles legally launch in China in the next 1-2 years,
their online functionality will allow gamers to continue
these social and competitive aspects.
“Not only is it imperative for a foreign videogame company
to understand the preferences and demands of Chinese gamers,
they must also strive to develop games that fit the
restrictive regulations of the Chinese government,”
continued Ms. Hanson. “The Chinese market is different than
other global markets, and it will take perseverance as well
as innovation in business models for foreign companies to
succeed there.”
The 2006 Chinese Videogame Market Study by Niko Partners is
a comprehensive review and forecast of the 2005-2010 Online,
PC, Console and Handheld games market. It was written based
on more than 36,000 points of data collected by Niko
Partners in 10 Chinese cities.
ABOUT NIKO PARTNERS
Niko Partners is the leading research firm focused on
providing specialized market intelligence on China’s
video game industry. Founded in 2003, the firm conducts
syndicated and custom research studies on
Chinese gamers, online games, offline games, consoles,
handhelds, regulatory issues, piracy,
development, online operators, distribution, and retail.
Niko Partners also offers consulting services
including focus groups, partnership selection, market
opportunity analysis, custom surveys in cities
throughout China and customized data analysis. The goal of
the research and strategic advisory services
is to help understand the market, strategically enter or
expand market share, and continue to profitably
grow within China. The company is based in Silicon Valley
and Shanghai, and its clients include worldwide
leaders in game software, hardware, and services, as well as
hedge funds, media companies, trade
associations, and management consulting firms, all of whom
have a vested interest in a thorough
understanding of China’s video game industry.
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Contact:
Sean Kauppinen
International Digital Entertainment Agency
415-299-2156
sean@ide-agency.com
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