Denny |
September 16, 2013
China mobile games market to see strong growth
A new report from Niko Partners, a market research and analysis firm, shows that the Chinese mobile games market is slated to see strong growth this year. The report highlights the growing popularity of mobile games and makes use of data collected by more than 4,000 Chinese consumers and over 370 million smartphones. Many consumers have been showing strong interest in mobile games because of the convenient entertainment they offer and the fact that these games can be played anywhere and at any time.
Market to reach $1.3 billion by end of 2013
According to the report, China’s mobile games market is expected to reach $1.3 billion by the end of 2013, representing a compound annual growth rate of 46% from 2012 to 2017. The report notes that mobile games began growing in popularity among consumers in China during the latter months of 2012. This resulted in a decline in social online games on popular social media sites as well as games for PC platforms.
Availability of smartphones helps promote mobile games
Another factor contributing to the growing popularity of mobile games is the proliferation of smartphones. The report expects that more than 500 million smartphones will be active in the country by the end of 2013, up from the 100 million recorded in early 2012. Furthermore, China’s telecommunications companies are working to bolster the nation’s 3G connectivity network, providing consumers with faster and more reliable mobile Internet access. This allows them to take advantage of the features offered in social mobile games more effectively.
Market consolidation could lead to higher quality games
The report shows that there are more than 80,000 development studios in China that are currently working on mobile games. Approximately 100 mobile games are released in the country on a daily basis. While there are many different studios currently working on active titles, large studios are working to consolidate the market. In the coming years, many smaller studios are expected to be absorbed into their larger counterparts. This may mean fewer mobile games developed within the country, but it could also mean a higher level of quality for games produced by larger studios.
Mobile games are coming to WeChat
Tencent, China’s largest Internet company, has been making aggressive moves in the mobile field recently. The company has been looking to boost the revenue generated from WeChat, China’s most popular social messaging application. WeChat is used by over half of the smartphone and tablet owners in China and the application is making its way to other markets beyond the country’s borders. Tencent believes that it can boost the revenue of WeChat by making various updates to the application and adding new features, such as mobile games.
WeChat brings social elements to mobile games
The company has noticed that mobile games are quite addictive to consumers throughout China. Tencent believes that this creates an ideal environment for consumers to compete with one another on mobile games through the WeChat application, adding a social element to these games. Users of WeChat will not be charged to play the mobile games associated with the application. There are various features that are included in these games that do come at a price, however. These in-game purchases can unlock additional content for those interested in spending money on the games they are interested in.
Consumers may make in-game purchases due to competition with friends
Tencent expects that competition will be the main reason consumers spend money on mobile games. WeChat is a social platform, allowing more than 300 million users throughout China to connect with one another in real-time. Tencent believes that the allure of “one-upping” friends could be a driving force behind in-game purchases. Those that do purchase additional content or advantages in mobile games establish a slight lead over their friends and this may encourage others to follow suit so as not to be left behind.
Consumers are notoriously fickle when it comes to mobile games
While mobile games have proven to be a lucrative sector for the game industry as a whole, consumers are notoriously fickle when it comes to this type of gaming. Few mobile games have the ability to hold a consumer’s attention for prolonged periods of time. While games like “Candy Crush Saga” manage to generate a great deal of revenue, consumers tend to move quickly from game to game in order to find a better experience. WeChat may need to support a wide variety of mobile games if it wants to generate revenue in this way.
