Niko Partners Releases China Videogame Market Forecast
Report Highlights Include Double-Digit Growth, Market to Climb to $2.1 Billion by 2010
San Jose, CA - April 25, 2006 - Niko
Partners, a leading research and consultancy firm on the
Chinese gaming market, today announced results from its
latest report showing impressive growth for the Chinese
videogame market in 2005. According to Niko's fourth annual
report on the market, 29 percent of China's 27 million gamers
played games more than 60 hours per month, which helped
contribute to a 23.6 percent growth rate in China's videogame
market from 2004 to 2005. The Chinese market, of which 84
percent is comprised of online games, now stands at $683
million. The market is forecast to enjoy a compound annual
growth rate of 24 percent for the period 2005-2010, climbing
to $2.1 billion.
"Chinese gamers' passion for massively multiplayer online
role-playing games (MMORPGs) has extended to the casual and
premium casual segments," said Lisa Cosmas Hanson, managing
partner of Niko Partners. "Premium casual games provide new
gamers greater access to the online game market and open up
an alternate source of entertainment for hardcore gamers."
Niko Partners projects that premium casual games will gain in
popularity comparable to MMORPGs over the next several years,
achieving 40 percent of all online revenue by 2010.
Other key findings related to overall China videogame market
growth include:
Internet Cafés: Gamers access the online gaming
universe an average of 4 hours per day through the estimated
20 million PCs in China's 265,000 officially licensed and
unlicensed Internet cafés, almost all of which have broadband
access and regularly maintained PCs.
Adoption of Broadband in Homes: One factor
contributing to the rise in gamers is faster adoption of
broadband in homes, which enabled more gamers to access
online games.
Increase in Casual Gaming: Casual games, including
puzzle, board and advanced casual games, comprised 20 percent
of the online market in 2005 and should rise to nearly 40
percent in 2010.
Hard-Core Gamers: 29 percent of all gamers were
classified as hardcore in 2005, up from 20 percent in 2004.
The definition is based on more than 60 hours of online game
play per month.
Social and Cultural Preferences
There are different preferences held by gamers in China, Niko
Partners reports. In particular, gamers enjoy softer graphics
and brighter colors of the games. Socializing and competing
with friends while gaming are primary factors in the
popularity of Internet cafés. When next-generation consoles
legally launch in China in the next 1-2 years, their online
functionality will allow gamers to continue these social and
competitive aspects.
"Not only is it imperative for a foreign videogame company to
understand the preferences and demands of Chinese gamers,
they must also strive to develop games that fit the
restrictive regulations of the Chinese government," continued
Ms. Hanson. "The Chinese market is different than other
global markets, and it will take perseverance as well as
innovation in business models for foreign companies to
succeed there."
The 2006 Chinese Videogame Market Study by Niko Partners is a
comprehensive review and forecast of the 2005-2010 Online,
PC, Console and Handheld games market. It was written based
on more than 36,000 points of data collected by Niko Partners
in 10 Chinese cities.
ABOUT NIKO PARTNERS
Niko Partners was founded in 2001 as an international
business expansion consulting services firm for the
multimedia software industry. Since 2003, we have conducted
and published primary market research on the China digital
entertainment market, both in the form of syndicated reports
and as custom research studies. We also execute market-entry
strategy projects using research and our extensive Niko
Network of associates throughout China. The goal of the
research and strategic advisory services is to help digital
entertainment industry clients understand the market,
strategically enter or expand market share, and continue to
profitably grow within China. The company is based in Silicon
Valley, Shanghai and Beijing.
For information on the study, please contact:
Lisa Cosmas Hanson
Managing Partner
Niko Partners, LLC
408-354-0888
lisa@nikopartners.com
or
Eric Gonzalez
Account Supervisor
Kohnke Communications on behalf of Niko Partners
415-777-4000
eric@kohnkecomm.com
# # #