The quality of smartphones in China is continually improving, alongside the growing opportunities for development and expansion in the mobile gaming market, which is now the largest in the world. On average, mobile users in China own a smartphone that is not only sophisticated but also allows for a seamless gaming experience.
Particularly, Chinese mobile gamers are concentrated heavily in the first and second-tier cities, where the majority of users prefer popular platforms like QQ, WeChat, and social media in general. They enjoy online consumption and do not hesitate to spend money on entertainment activities such as watching movies, listening to music, or playing games.
All these factors have made China become the number one target market for mobile companies. But how can these companies succeed in such a vast and competitive country? According to reports from Whatsonweibo, below are five essential characteristics of the Chinese mobile gaming market that you need to be aware of:
1. Highly Competitive Market
The mobile gaming market is undoubtedly a “big pie” that everyone wants a piece of, making China a region with exceptionally high competition. Currently, it is dominated by major players like Netease and Tencent. Additionally, many independent companies, such as iDreamsky, are also present. This situation makes it very challenging for both small and medium-sized companies looking to enter the market, especially foreign ones. However, with its immense growth potential, China remains a “land of opportunity” for any gaming company willing to take on the challenge.
2. Regulation and Restrictions
Even though there are “big players” operating in the market, China remains a challenging environment for foreign companies due to strict regulations and restrictions from the local government. For instance, there is no Google Play Store available, and many of Google’s other products such as Gmail and Google Search have been banned since 2010.
This is just one of the many barriers that foreign companies face in China. The most viable strategy for overcoming these hurdles and penetrating the market is to establish a local company in China or collaborate with a local partner who can provide deeper insights into the market, regulations, and growth potential.
3. “Fan” Economy
Many online games popular in China are developed based on literary works, comics, anime, or famous reality shows of the nation, which can be termed “fan-driven success” – an important aspect of the mobile gaming market in China.
Star Wars serves as a prime example of how “fan” engagement can significantly benefit various markets, including gaming. Earlier this year, Star Wars: Commander became the most downloaded game in China, achieving over 1 million downloads within just four days of its release. Foreign companies can leverage popular mobile content to better understand Chinese consumers and what they appreciate.
4. Global Expansion
The intensely competitive local market has led many Chinese gaming companies to pursue globalization. One such company is Snail Games, founded in To Châu, China, in 2000, which established a subsidiary in LA, USA, in 2010. Globalization brings various challenges for Chinese companies as they must adapt their designs to suit Western players’ preferences.
This often means making their games “more appealing” or adding features and advertising methods that resonate more effectively with Western audiences. For example, to promote the game Taichi Panda in the USA, Snail Games hired MMA fighter and actress Ronda Rousey as their game ambassador, emphasizing the “Hollywood” aspect of the game. Additionally, major players like Tencent and Alibaba are keen on entering the Western market by acquiring local firms such as Miniclip or Pocket Gems.
The Chinese mobile gaming market is moving towards globalization, which will present new opportunities for foreign gaming companies. If they haven’t yet devised a strategy to penetrate the Chinese market, they could create beneficial partnerships with Chinese companies by helping them localize their games.
5. Mobile eSports
In China, mobile eSports are significantly more developed than in Europe. Many popular titles have shown that eSports can generate more revenue than console games – and they are even more appealing as players can engage with them anytime and anywhere. The competitive elements, such as in the Hero Pro League, attract even more players. Although eSports may not be the dominant genre in the Chinese mobile gaming market, its importance cannot be overlooked.
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