While the market in the country is currently about half that of the United States, its growth rate is tremendous.
There is no doubt that mobile gaming is huge in China, despite the fact that it represents only a fraction of its complete video games market, and the fact that it is only about half of the size of the American market.
What makes the difference is the very rapid growth rate that the Chinese mobile games market is experiencing.
Mobile gaming is far lower, per capita, in the Chinese market than in the U.S. but the potential is only just starting to be tapped and the gap is about to close exceptionally rapidly. Currently, it is estimate that the market there is at around $9.7 billion (60 billion yuan). It has been consoles and, to a much greater extent, PC games that have been leading the way in terms of revenue in the country. However, the prediction now is that when compared to mobile devices, PC games may be about to lose their top position. This doesn’t necessarily mean that PC has no future, but it instead means that there is a great deal more room to grow in mobile.
Mobile gaming is accessible to a far larger number of people that haven’t tapped into it yet, in China.
The lead held by PC games remains a very sizeable one, but the situation has shown that growth is starting to slow, simply because it is starting to reach a level of saturation. Those who have PCs and who will use them for gaming are already doing so, to a large extent. What makes the mobile games environment have such potential to take the lead is that there are far more smartphone users than computer owners in the country, and they are now starting to get into these apps with a vengeance.
The growth in mobile gaming has been an amazing 400 percent, from having been 2.5 billion yuan a couple of years ago, to 125.2 billion yuan, last year. With an estimated three times more smartphone and tablet based gamers than there are on PCs, that shows that there is still quite a distance for mobile to go before it has reached its maturity.
China proves promising market for mobile games
In China, mobile games are quickly becoming a big deal. Smartphones and tablets have been gaining popularity throughout the country for some time, but mobile gaming is a relatively new trend among young consumers. Over the past few years, mobile games have become one of the primary interests among consumers throughout China. This has partly to do with a ban placed against traditional gaming consoles by the Central Government. This ban essentially ensured that mobile devices would be the most popular gaming platforms among consumers.
Companies like Yodo1 hold keys to Chinese market
Enthusiasm concerning China’s mobile games market is quite high, considering the fact that this sector alone accounted for more than $352 million in revenue during the first quarter of 2013. During the first quarter, the market experienced a 30% increase in revenue over the previous year. Yodo1 is one of the Chinese gaming companies that have been taking note of the growing interest that consumers have in mobile games and the financial benefits that this sector represents.
China too big to ignore for the game industry
According to Yodo1 CEO Henry Fong, the Chinese market is too promising to ignore. Yodo1 works with developers from Western countries and helps them bring their mobile games to China. Without companies like Yodo1, Western developers would have difficulty entering the Chinese market due to the country’s stringent regulations concerning foreign trade. Gameloft, a French company, first tried to break into China in 2003 and has only very recently found the stability it needs to pursue consumers in a significant way with its mobile games.
Mobile games could be a successful vehicle for companies like Yodo1
Companies like Yodo1 have taken note of the promising environments that mobile games are subjected to in China and have been positioning themselves to be attractive to foreign developers. These companies essentially hold the keys to the Chinese market and many are well aware of this fact. For these organizations, mobile games are not the only an entertainment medium, they are also a promising business opportunity.
