Seeing The Chinese Game Market Through NetEase

As an international industry, China shares numerous features with the global game market from market structure to brand preference. Just as Supercell and King that take 45% of the America market, 60% of the Chinese game market is occupied by two major game companies: NetEase and Tencent.

The former one is a preeminent game publisher that has developed numerous signature games in China since 2001, while the later one is renowned for its media and distribution platforms, such as QQ and Wechat.

Fantasy-Westward-Journey-5In terms of the game category, the proportion of MMO games in the Chinese game market increased 3.7 times from 11% in 2014 to 38% in 2015. It also enjoys the longest product circle and best profitability. NetEase is at the forefront of the shift, as the company launched its MMORPG game Fantasy Westward journey in March 2015. Since then, the game has dominated the No.1 position of China iOS App Store’s Top Grossing chart.

While Westward Journey mobile is also a MMO game produced by NetEase, it took the 3rd place of Top Grossing within only one day after launching, and reached the 2nd place for merely 11 days.

Securing the prosperous domestic performance, leading Chinese game companies are stepping into the global market. In fact, Chinese games are increasingly exposed globally no matter in US, Japan, or Korea. NetEase Games established its North America Office at San Francisco in 2015 and the Korea office at Seoul in 2014.

netease logo bigThe company is continuing to expand and refine its global team. “Along with introducing the great games to China, our office is dedicated to develop better games that fit theglobal taste,” said Zhuo Huang, the general manager of NetEase Games North America Office, “Those games will be developed under the western roles from planning to publishing.”

Diverse user requirements, improving hardware performance, and the innovative technologies such as VR are the key factors underpinning the booming global game market. Besides, the intelligent property of numerous great movies and novels are being well developed due to the pan-entertainment trend. Industrial developments are having a diverse vision by referencing others’ strategy, technology and executive plans. It is this open environment that catalyzes the game market by keeping it innovative, hence enlarging its target market’s size and business scope. In addition, the internet drives the industry to be more globalized, and players nowadays can easily download the elite games from different channels. It is expected that China, as a major participant of the global game market, will bring more opportunities and enlarge the market for its counterparts around the globe.

Source: Netease