The Chinese console game market exceeds 2 billion dollars

According to data released by Niko Partners, China’s console market will show uneven growth until 2026.
china-console-market-revenueschina-console-market-revenues

There has been a lot of talk about the Chinese game market this year. The restrictions imposed by the Chinese government on the games significantly affect the country’s market. On the other hand, China continues to grow with the strength of its population and local companies.

According to the report released by Niko Partners, the Chinese console market grew by 17% in 2021, generating $2.16 billion in revenue. This $2.16 billion revenue includes console games and hardware sales revenues.

It is quite possible that the growth in the Chinese console market is related to the COVID 19 restrictions in 2021. On the other hand, Niko Partners predicts that this market will continue to grow until 2026, reaching $2.53 billion, although not at the same rate.

These revenues are pretty small compared to the revenue China generates from other gaming areas, especially mobile. Last year, China generated $45.49 billion in PC and mobile games revenue in its domestic market alone.

Chinese console market revenues and player count
Chinese console market revenues and player count

Of the $2.16 billion console market revenues in China, $1.038 billion comes from console hardware sales and approximately $1.118 billion from console game/software sales. Console game sales in the country are expected to increase until 2026, while console hardware sales are expected to decline.

Niko Partners says the number of console players in China will be around 18.4 million in 2022. This number is expected to increase to 27 million by 2026. As in revenues, the console lags far behind PC and mobile in the number of players, especially considering the population of China.

China is applying stringent measures to limit foreign games from entering the country. Chinese companies also produce quite a few console games compared to other game genres. Considering these two factors, Niko Partners thinks that around 80% of console revenues in the country come from outside sources called the “grey market.”

Lisa Hanson, Founder and President of Niko, comments on the matter:

“Console gamers and console game revenue growth rates are in the double digits in mainland China. The demand for consoles comes from not only higher levels [of] spending by gamers but by a niche set of gamers seeking high-quality, global games beyond what is found in PC and mobile games in China. Gamers may have different preferences for gameplay and visuals, but they all want great, high-quality games, and consoles have offered that for many years.”

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