In statistics reports surveyed in China at the end of the first half of 2022, it has come up that the growth and revenue generated by Chinese games have fallen, and the number of Chinese mobile gaming users has seen a decline for the first time since 2008 when survey data was first collected.
The reason for this sudden halt in growth is speculated to be because of strict new policies which have been put into effect in order to combat game addiction, particularly amongst children and adolescents. These policies range from capping the amount of time that minors can spend playing games, to banning sales of new video game consoles.
Whatever the reason, this unexpected decline in mobile gaming will no doubt have far-reaching consequences not just for the industry but also for China’s economy as a whole. Only time will tell how games will adapt to survive in this new climate.
According to a report by the Game Publishing Committee of the China Audio-Video and Digital Publishing Association.
The number of gamers in China has decreased from 666.57 million to 665.69 million, accounting for a 1.8% decline.
The domestic revenue earned from gaming ventures in China has decreased by 4.25%. However, the global revenue of Chinese games has increased by about 6.2% to bring in around $9 billion in the first half of the year.
The giants of the Chinese gaming industry such as Tencent, NetEase, and HoYoverse are focusing on expanding their markets globally, which has helped to offset the decline in the domestic market.
Decline in mobile users and revenue generation has forced many companies out of the industry
According to a report by the China Audio-video and Digital Publishing Association, the esports ecosystem of China has suffered due to the shrinking growth in other areas of the game industry. The total revenue of the Chinese esports in the first half of the year is $11.31% billion, which is a decline of 10.12% as compared to last year. The report was released by Tang Jiajun, deputy secretary-general of the China Audio-video and Digital Publishing Association, at a forum held on July 22 in Zhejiang Province. The decline in mobile users and revenue generation has had a massive impact on Esports.
Esports in China have seen a decrease in players and audiences due to the decrease in the total number of gamers in the country. However, on a positive note, the number of e-sports events in China has increased year on year to 62 from January to June 2022. This is due to the maturity of online competitions. Therefore, even though there are fewer people playing and watching esports, the quality of competition has increased. This is good news for esports fans in China and around the world.
Last year, China imposed one of the strictest enforcement policies on gaming in the world. The policy was implemented with the aim of keeping the youth more focused on their real life rather than a virtual one. However, the policy has been a retardant when it comes to judging growth from an economic point of view. It remains to be seen how it all ends up if the companies manage a workaround to make the graph rise again.
Josh Yang is a Tech Writer who loves helping people understand what's going on in the tech industry. He writes about all things tech, from the newest gadgets to how to get your cat off your keyboard. Josh has been writing since 2013 and enjoys discovering new topics and sharing them with his audience.