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SILICON VALLEY, Calif. – November 3, 2020 – Niko Partners, a market research and consulting firm covering the video game industry in Asia, today announced the release of their China Games Hardware and Infrastructure Report. This report delivers a detailed look at the internet infrastructure, hardware, devices, and components that enable gaming in China, how the landscape is changing and what this means for developers, publishers, hardware companies, service providers, investors, and others looking to understand the direction of the industry.

Key takeaways from the report include:

  • 88% of gamers in China consider gaming when they purchase a new PC.
  • 5G smartphones account for more than 60% of smartphones shipped during July 2020, up from 26% in January 2020.
  • Internet cafes are on the decline due in part to the impact from COVID-19 which led to the closure of multiple sites in 2020.
  • Console gaming revenue is set to reach $2.15 billion in 2024. Sony remains the market leader, but the Nintendo Switch is quickly closing ground.
  • Gamers in China are tech savvy, and tend to research hardware on their own with input from friends, forums, and influencers for hardware information, rather than relying on advertising or salespeople.
  • There are more than 417 million broadband users with a fiber to the home/office (FTTH) connection, up 10x from 2013.
  • The total number of console gamers reached 11 million in 2019 and will reach 19.15 million in 2024, primarily driven by new console launches and the continued sales of Nintendo Switch.
  • 99.6% of gamers own a smartphone, 56% own a PC and 46% own a laptop or a notebook, 17% own a console
  • 84% of smartphones in China are android phones
  • Popular PC games in China require better PC specs. PUBG is the most demanding, prompting gamers to upgrade components or buy a PC to meet system requirements or go to icafes with high end PCs.

“To really understand a local market you need to understand gamers and their behavior, the regulations that govern the country market, and the available infrastructure and hardware on which gaming depends,” said Lisa Cosmas Hanson, president of Niko Partners. “Further, China is investing heavily in hardware and infrastructure to build strong connected networks to support the internet and games industries. It’s critical to know what this will enable – the availability, opportunity, and constraints of the internet infrastructure, for gamers who need to access, pay for, and be satisfied with game performance in China.”

Niko’s China Games Hardware and Infrastructure Report details the addressable market, hardware usage, and consumer demand for hardware and infrastructure including ownership, usage, and purchase intent, and purchase decision influences for PC, console, mobile device, GPU/CPU, and accessories; trends, connectivity and bandwidth available to gamers, the impact of 5G, and more.

Niko Partners is the leading market research firm covering the Asia games market. Founded in 2002, the firm conducts syndicated and custom research studies on China, Chinese Taipei, India, Japan, South Korea, and six countries of Southeast Asia, including online games, mobile games, consoles, regulatory issues, piracy, development, online operators, distribution, and retail. Niko Partners also offers consulting services including focus groups, partnership selection, IPO and market opportunity analysis, custom surveys in cities throughout China and the Asia Pacific region, 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 in Asia’s impressive games markets. The company is based in Silicon Valley with offices in Shanghai, Bangkok, Jakarta and London, 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 the region.