Page 366 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
industry has shifted from personal computer-based of $22.23 billion, China had overtaken the U.S. as
games in 2013 to mobile games, which accounted the world’s largest eSports market. There are now
for 30 percent of the total revenue in 2016. That year over 100 million e-sports fans in China (Lu). Financial
mobile games recorded revenues of 17.1 billion yuan, a institutions are starting to take notice. Goldman Sachs
187 percent increase year-on-year. In addition, Chinese valued eSports at $500 million in 2016 and expects the
professional video gamers surpassed Sweden, South market will grow at 22 percent annually compounded
Korea and the U.S. to become the top country in terms over the next three years into a more than $1 billion
of tournament winnings, with a total haul of $19.3 opportunity (BI). Three international milestones in
million in 2016, a report from Unibet shows. The number video gaming occurred by 2017. Video games broke
of Chinese professional eSports players has increased through the $100 billion barrier. As an industry, it’s
rapidly in the past ten years, from only 50 players in 2006 now worth three times as much as movies worldwide.
to 1,001 players in 2016. The nation has remained in the Mobile has taken over, growing to $39 billion and now
top 3 in terms of player production since overtaking officially the largest games segment. Access to games
Sweden in 2014. According to a report by iRearch, has been democratized by the smartphones. More than
China’s eSports industry entered into a development two billion people of all ages, sexes, nationalities and
stage in 2009 with the emergence of online games income groups play them. More than 24 studios have
like Dota and League of Legends. Since then, the designed video games worth more than a billion dollars
industry has experienced significant growth due to and at least 11 of them are in China (Wehmeier).
more international tournaments being held, as well as
the popularity of eSports live streaming platforms and In 2016, the revenue of PC Web game dropped by
mobile games (Yue, China’s ESports). 26.1 percent, mainly because the gamers were shifting
from PC to mobile. The technical limitation is also a major
Initially, competitive gaming was most popular in reason. Currently, most web games are produced based
North America and Western Europe. When the eSports on Flash framework. Flash has advantages of fast loading,
industry began to take off in the late 1990s, China joined high compatibility and flexible content production
the club and soon became a major player. In the early etc. But the web games based on Flash take up a lot
years, most Chinese gamers regarded competitive of system resources. This has limited the development
gaming as a hobby or leisure activity. From the late of web game to a certain extent. Good news, however,
1990s, profit-driven companies such as video game was only a click away. The latest quarterly update of
websites, PC newspapers, and computer hardware/ Newzoo’s Global Games Market report in April 2017
software vendors began to organize and sponsor video showed that 2.2 billion gamers across the globe were
game competitions across the country, which facilitated expected to generate $108.9 billion in game revenues
the emergence of China’s first generation of professional in 2017. This represents an increase of $7.8 billion, or 7.8
and semi-professional gamers. percent, from the year before. Digital game revenues
accounted for $94.4 billion or 87 percent of the global
The Chinese government took a supportive stance market. Mobile is the most lucrative segment, with
toward eSports, hoping to take this opportunity to smartphone and tablet gaming growing 19 percent
facilitate the development of the IT industry and boost year-on-year to $46.1 billion, claiming 42 percent of
the economy. In 2003, the Sports Ministry listed eSports the market. In 2020, mobile gaming will represent just
as one of 99 officially recognized sports. In 2004, the more than half of the total games market. One of the
Sports Ministry and the All China Sports Federation big reasons for mobile’s continued growth is the rise
launched the First China E-sports Games. After more of China’s gaming market. Overall, APAC territories will
than 15 years of rapid development, competitive generate $51.2 billion (47 percent of the global total)
gaming has gained general acceptance. Domestic in 2017, Newzoo said, and China will be responsible for
league matches are watched on the Internet and on one quarter of all global game revenues, reaching $27.5
television by millions of gaming fans. Top players have billion in 2017. That’s notable because it outpaces the
become national figures. In 2008, celebrity Warcraft III U.S. games industry, which is expected to reach $25.1
player Zhang Xiangling was selected as a torchbearer billion. Mobile revenues in China were $11.2 billion for
for the Beijing Olympic Games as a representative of 2016, Newzoo said, and that’s expected to rise to $14.6
eSports. In March 2013, the Sports Ministry established billion in 2017 (Brightman).
a national eSports team. By 2016, with annual revenue
366
industry has shifted from personal computer-based of $22.23 billion, China had overtaken the U.S. as
games in 2013 to mobile games, which accounted the world’s largest eSports market. There are now
for 30 percent of the total revenue in 2016. That year over 100 million e-sports fans in China (Lu). Financial
mobile games recorded revenues of 17.1 billion yuan, a institutions are starting to take notice. Goldman Sachs
187 percent increase year-on-year. In addition, Chinese valued eSports at $500 million in 2016 and expects the
professional video gamers surpassed Sweden, South market will grow at 22 percent annually compounded
Korea and the U.S. to become the top country in terms over the next three years into a more than $1 billion
of tournament winnings, with a total haul of $19.3 opportunity (BI). Three international milestones in
million in 2016, a report from Unibet shows. The number video gaming occurred by 2017. Video games broke
of Chinese professional eSports players has increased through the $100 billion barrier. As an industry, it’s
rapidly in the past ten years, from only 50 players in 2006 now worth three times as much as movies worldwide.
to 1,001 players in 2016. The nation has remained in the Mobile has taken over, growing to $39 billion and now
top 3 in terms of player production since overtaking officially the largest games segment. Access to games
Sweden in 2014. According to a report by iRearch, has been democratized by the smartphones. More than
China’s eSports industry entered into a development two billion people of all ages, sexes, nationalities and
stage in 2009 with the emergence of online games income groups play them. More than 24 studios have
like Dota and League of Legends. Since then, the designed video games worth more than a billion dollars
industry has experienced significant growth due to and at least 11 of them are in China (Wehmeier).
more international tournaments being held, as well as
the popularity of eSports live streaming platforms and In 2016, the revenue of PC Web game dropped by
mobile games (Yue, China’s ESports). 26.1 percent, mainly because the gamers were shifting
from PC to mobile. The technical limitation is also a major
Initially, competitive gaming was most popular in reason. Currently, most web games are produced based
North America and Western Europe. When the eSports on Flash framework. Flash has advantages of fast loading,
industry began to take off in the late 1990s, China joined high compatibility and flexible content production
the club and soon became a major player. In the early etc. But the web games based on Flash take up a lot
years, most Chinese gamers regarded competitive of system resources. This has limited the development
gaming as a hobby or leisure activity. From the late of web game to a certain extent. Good news, however,
1990s, profit-driven companies such as video game was only a click away. The latest quarterly update of
websites, PC newspapers, and computer hardware/ Newzoo’s Global Games Market report in April 2017
software vendors began to organize and sponsor video showed that 2.2 billion gamers across the globe were
game competitions across the country, which facilitated expected to generate $108.9 billion in game revenues
the emergence of China’s first generation of professional in 2017. This represents an increase of $7.8 billion, or 7.8
and semi-professional gamers. percent, from the year before. Digital game revenues
accounted for $94.4 billion or 87 percent of the global
The Chinese government took a supportive stance market. Mobile is the most lucrative segment, with
toward eSports, hoping to take this opportunity to smartphone and tablet gaming growing 19 percent
facilitate the development of the IT industry and boost year-on-year to $46.1 billion, claiming 42 percent of
the economy. In 2003, the Sports Ministry listed eSports the market. In 2020, mobile gaming will represent just
as one of 99 officially recognized sports. In 2004, the more than half of the total games market. One of the
Sports Ministry and the All China Sports Federation big reasons for mobile’s continued growth is the rise
launched the First China E-sports Games. After more of China’s gaming market. Overall, APAC territories will
than 15 years of rapid development, competitive generate $51.2 billion (47 percent of the global total)
gaming has gained general acceptance. Domestic in 2017, Newzoo said, and China will be responsible for
league matches are watched on the Internet and on one quarter of all global game revenues, reaching $27.5
television by millions of gaming fans. Top players have billion in 2017. That’s notable because it outpaces the
become national figures. In 2008, celebrity Warcraft III U.S. games industry, which is expected to reach $25.1
player Zhang Xiangling was selected as a torchbearer billion. Mobile revenues in China were $11.2 billion for
for the Beijing Olympic Games as a representative of 2016, Newzoo said, and that’s expected to rise to $14.6
eSports. In March 2013, the Sports Ministry established billion in 2017 (Brightman).
a national eSports team. By 2016, with annual revenue
366
