Research reveals massive rise in Chinese gaming

Chinese market research and consultancy firm, Niko Partners, has revealed its latest report on the growth of gaming in the region, showing a positive rise and estimating continued, rapid growth in the next four to five years.

Online gaming is the main catalyst for growth in China, and according to Niko's fourth annual report on the market, accounts for 84 per cent of Chinese gaming - specifically MMORPG titles, with an increasing interest in premium online casual games.

The rapid adoption of broadband services in the home has afforded a much higher rate of access to online gaming, as has the boom in Internet Cafes, with gamers accessing online games for an average of 4 hours per day throughout the 265,000 licensed and unlicensed cafes with broadband Internet access.

Niko's research suggests that 29 per cent of the country's 27 million gamers played more than 60 hours per month, contributing to a 23.6 per cent growth rate from 2004 to 2005. The report estimates the value of the Chinese gaming market at USD 683 million, projecting sharp, continued growth to reach USD 2.1 billion by 2010.

Lisa Cosmas Hanson, managing partner of Niko Partners, commented: "Chinese gamers' passion for massively multiplayer online role-playing games has extended to the casual and premium casual segments. Premium casual games provide new gamers greater access to the online game market and open up an alternate source of entertainment for hardcore gamers."

The report states that the number of hardcore gamers (defined as gamers who spend more than 60 hours playing online games per month) increased by 20 per cent compared to 2004, but estimates that casual games, including puzzle, board and advanced casual games, should rise to nearly 40 per cent in 2010.

Western publishers and developers looking to capitalise on the boom in Chinese gaming need to take careful consideration of the differing cultural tastes and preferences in the Asian markets however - something which Microsoft is rapidly learning in its efforts to establish a base for the Xbox 360 in Japan.

According to Niko, Chinese gamers generally prefer games with "softer graphics and brighter colours", but the essential consideration is in the provision of a significant online component, providing community features, online social elements and competition. They also need to pay heed to the stringent regulatory barriers enforced by the Chinese government.

"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," Cosmas Hanson added.