Chinese mobile games’ future lies in US, Europe amid tightened regulation, slowing domestic growth at home, report says

The US and Europe will be the ‘primary focus’ for Chinese video gaming firms’ expansion overseas, a vast market that is forecast to reach US$14.9 billion

China is predicted to record slower growth because of the government’s rigid video game licensing process and restrictions on playing time for young gamers

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Chinese-developed mobile games are expected to see greater demand overseas, as regulation tightens and growth slows on the mainland. Photo: Shutterstock

Published: 7:30pm, 10 May 2022

Chinese-developed mobile games are predicted to generate greater demand overseas, particularly in the United States and Europe, as tightened industry regulation and slowing growth dampen further expansion in the domestic market, according to a new report.

The US and Europe will be the “primary focus” for Chinese video gaming firms’ expansion overseas, a vast market that is forecast to reach 100 billion yuan (US$14.9 billion) over an unspecified period, according to a report published over the weekend by the research arm of technology media 36Kr.

It expected China’s video gaming market, the world’s biggest, to record slower growth because of the government’s rigid licensing process and restrictions on playing time for young gamers across the country.

The US and Europe, by contrast, have fast-growing smartphone penetration rates and higher consumption, according to the report. It also indicated that the “mobile gaming [industry] has not been deeply developed” in those markets.