China’s gaming industry to hit $47.7B revenue and grow 5.2% in 2023

In a significant turnaround, China’s gaming sector is poised for a robust resurgence in 2023, surpassing the setbacks witnessed in 2022. Niko Partners’ revised China Games Market 2023 Half-Year Update Report indicates that the country’s gaming revenues are on track to reach an estimated $47.7 billion this year, showcasing a substantial 5.2% year-over-year growth.

Several factors contribute to this optimistic outlook. Notably, there has been a more consistent stream of gaming approvals from regulatory bodies, coupled with successful game launches that resonate with the gaming community. Furthermore, players are exhibiting increased spending on established titles, and the continued accessibility to PC and console games even before receiving official approvals enhances the industry’s resilience.

The report reflects a positive trajectory for China’s gaming industry, projecting revenues to exceed $56.7 billion by 2027. This optimistic forecast aligns with a more stable regulatory environment and a notable upswing in player expenditures.

While the total number of gamers in China is expected to increase, the growth rate is anticipated to be gradual. In 2023, the player base is estimated to grow by 1.63%, surpassing 710 million. Looking further ahead, a projected compound annual growth rate of 1% is anticipated to elevate the player base to 735 million by 2027.

These revised projections not only underscore the resilience of China’s gaming market but also paint a promising picture for industry stakeholders, investors, and gaming enthusiasts alike. The industry’s ability to navigate challenges and exhibit growth speaks to its dynamic nature and the enduring appeal of gaming in China.

It’s worth highlighting that China remains the global frontrunner in the mobile gaming arena, with estimations of user spend hitting $42.4 billion.