Why You Should Target Eastern Mobile Game Markets

China Grows in Mobile Game Market

Supercell, the Finnish based leading mobile game company, recently published their 2014 financial report stating that the creator of Clash of Clans totaled $1.7 billion in revenue and $565 million in profits before tax.

Undoubted, many factors have contributed to these stunning numbers in the past year. It is worth noting that the superb performance in the Asian markets – China, Japan, South Korea – has played a vital role in the huge success. This indicates that any gaming company targeting to achieve a massive expansion regarding revenue and profits must take your games to Eastern markets.

While entering Asian markets for expansion sounds like a no-brainer, it is not easy to crack these markets for Western companies. Evidence shows that despite the dominance on iOS App Store and Google Play in Western markets, Clash of Clans has never become No.1 grossing game in Asia, for example China. If you are thinking about just translating the language and shipping to China, then please hold your horse and put a great deal of thoughts on it again.

We received quite many comments regarding the last blog of entering China’s mobile game market. So we decided to break down into depth on each topic and share with you a gist of basic things regarding China’s market. I know that you are more interested in ‘what to consider for entering China’s market’ and ‘how to conquer that market’. But before that, let’s get a quick overview of why you should take your games to China.

Why You Should Go to China

Let’s start from the overall China Online Game Market, since I believe some of our readers are mobile web game developers/publishers.

According to the 2014 China Online Game Report by iResearch, a leading research organization focusing on China’s internet industry, the revenue of China online game market reached 100 billion RMB ($16.1 billion). With the rapid growth of mobile games, the market will expand to a higher level in the future. In the next 4 years, the revenue will climb to 197.1 billion RMB, almost doubling the revenue in 2014.

China Online Games Revenue 2014, 2011-2018

China Online Games Revenue 2011-2018
Image Credit: iResearch

Here comes the most important stats for every mobile game developer – China Mobile Games Revenue. 2014 saw a 86% year over year revenue growth, amounting to 27.6 billion RMB ($4.4 billion). Certainly, the growth was driven by the large user base in China. As the growth of mobile game users slows down in the next 4 years, the increase of market revenue will decelerate correspondingly. In spite of the growth slowdown, the total revenue in 2018 is predicted to arrive at 85 billion RMB.

China Mobile Game Market - Growth and Revenue 2014, 2011-2018

China Mobile Games Revenue 2011-2018
Image Credit: iResearch

Finally, let’s take a look at the revenue structure of China Online Game Market in the future. As data shows, mobile game market only acquired a small part of the total game ‘cake’ in 2014. With the further penetration and adoption of mobile smartphones, however, the structure will turn over in 2018 that mobile games will enjoy the majority of revenue and become the biggest market revenue driver.

Revenue Structure of China Online Game Market 2014, 2011-2018

Revenue Structure of China Online Game Market 2011-2018
Image Credit: iResearch

Wrapping up

As the most populous country in the world, China also has the largest base of mobile gamer in the world. The latest report (http://www.iimedia.cn/14268431170365i8n7.pdf) by iiMedia Research Group shows that by the end of 2014 the user base of mobile games in China has soared to 474 million. With such a large population, the mobile game market is inevitable lucrative in China.

I hope this blog can give you a grasp of China’s mobile game market – the size, the development, and the future. Backed by data, you should take your go-to-China strategy on the table if you have been worrying about the ROI. And next time we will go deeper into what you should investigate and take into account.