China’s mobile game industry witnesses explosive growth
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The online gaming industry in China continues to boom. The sector reported impressive growth in the first half of 2017, with revenues hitting nearly 100 billion yuan. Mobile games accounted for 56 percent of that growth, the largest share of the entire industry.
As of June, there were more than 507 million gamers in China, almost equal to the population of the European Union. Mobile users accounted for 86 percent of that figure. Mobile game revenues hit 56.1 billion yuan during the first six months, up almost 50 percent year-on-year.
Popular mobile games such as 'Honor of Kings' and 'Fantasy Journey', are the big money-makers at the moment. Tech firm Tencent hit 12.9 billion yuan in first quarter revenues, up 20.6 percent quarter-on-quarter. In the same period, gaming giant NetEase saw its mobile game revenues reach 7.9 billion yuan. The outstanding performances come from the increased willingness of gamers to spend money on entertainment.
But while the mobile games cash in, they are also being challenged. The People's Daily has repeatedly criticized the most profitable game, 'Honor of Kings', over the past several weeks. The official newspaper said the game is too addictive for young people. In response, Tencent has started limiting the playing time for children and teenagers.
While Chinese gaming companies have received criticism at home, they are trying to export their digital entertainment products to overseas markets. 'Honor of Kings', for example, has been warmly received in Vietnam, South Korea and Thailand and there are plans to release it in the United States and Western Europe.