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Chinese video game market lucrative but complex to penetrate
Barry He
A NetEase staff member presents a mobile game produced by the company and the Palace Museum in Beijing, China, December 28, 2018. /Xinhua

A NetEase staff member presents a mobile game produced by the company and the Palace Museum in Beijing, China, December 28, 2018. /Xinhua

Editor's note: Barry He is a London-based freelance columnist. The article reflects the author's opinions and not necessarily the views of CGTN.

China's enormous video game industry is on track to be worth about 470 billion yuan ($72.6 billion) by 2023, according to Statista. A record number of developers, both domestic and from abroad, are trying to break into the world's most lucrative market this year. However, there are many unwritten rules and secret codes to finding success in China, a country with a rich cultural history in gaming. Companies must be well versed in the unique nature of the country's video game market before attempting to penetrate.

Game developers, for example, must be aware of the careful attitude the country has toward gaming addictions among children. Video game addiction therapy centers are already a big business in China, with many teenagers and children sent into rehabilitation programs by concerned parents every year. Tencent, one of the world's largest publishers of games, is now using facial recognition technology to prevent children of certain ages from playing between the hours of 10 p.m. and 8 a.m. so that it does not impact their education or life.

Developers should also be aware of the suitability of their content aimed at children. Games that contain much violence or sexual content may face difficulties in obtaining a license in China. Many developers have toned down the grotesque nature of content while retaining the essence of the game by making subtle changes. For example, one company changed the color of flesh and blood from red to black. Creative tweaks go a long way. Zombies, a popular but gruesome mainstay of many Western games, are better received as robotic cyborgs in China.

Developers should also be wary of introducing in-game purchasing options within their products, especially with virtual currencies. Families don't want their five-year-old children emptying the entire family bank account on virtual tokens by playing on their parents' mobile phones. Such stories have prompted concern among increasingly tech-savvy families who want their children to have a safer (and affordable) gaming experience.

Developers from abroad must also be well versed in areas where the Chinese gaming market has come into its own. One area is eSports leagues, where participation among young people has gone mainstream compared to the West where enthusiasm exists, but the industry is overshadowed by physical sports.

Guest and the media try awarded games during a celebration event for the best of Apple's App Store 2019 in New York, the United States, December 2, 2019. /Xinhua

Guest and the media try awarded games during a celebration event for the best of Apple's App Store 2019 in New York, the United States, December 2, 2019. /Xinhua

Games without a competitive element that cannot integrate into the billion-dollar eSports landscape can still find success through cult followers. Nintendo's Animal Crossing, for example, has been embraced by Chinese fashion enthusiasts and designers to create digital works of art inspired by the game among a passionate underground community. Such success has caught original creators by surprise and could be better harnessed in the future rather than being left to chance.

In the U.S. gaming landscape, the top ten positions are dominated by more or less the same games year after year, or reincarnations of the same titles. China is the polar opposite, with a much more volatile environment where games quickly fall in and out of favor with fans as the creative wheels of the industry spin. Once there is a hit, it is notoriously difficult to stay number one. This is especially true for the mobile gaming sector, which has become the most dominant platform over the past 18 months.

Developers must do their research and due diligence, and make sure their games offer something special. There is little point in releasing a game where the gist of it can be replicated in a matter of months. Role playing games (RPGs) are currently the most popular genre in China, with titles such as Final Fantasy reigning supreme. In the U.S., simulation games such as The Sims, which hold dominant shares in the market, hold little appeal in China. 

A sizeable minority of gamers in China are children or women. Current genres of games, however, fail to cater to the latter demographic. Many women find that current games and genres are too masculine and revolve around power control fantasies. This sector of the market is underdeveloped and titles that cater to women, especially in the RPG genre, would do well. RPGs can allow players space to learn and connect with others, sometimes in a much more poignant way than books or film.

New generations of games that bear this in mind could win over new audiences as well as pay a welcome debt back to their female audiences who have remained loyal but also grown in size over the last two decades. The potential rewards of customizing games for this demographic could be unprecedented. China's video game industry is unique in the world in both its size and complexity. Remaining attuned to its tumultuous changing tides will pay huge dividends for those bold enough to take the dive. 

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com.)

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