Asia

Chinese Gaming Revenues Decline for the First Time in Years

Published

2 years ago

July 27, 2022

Reading Time: < 1 minute

The China Audio-video and Digital Publishing Association (CADPA) and the China Game Industry Research Institute jointly released a report on China’s gaming industry for the first half of the year.

According to the report, total revenue in China’s game industry was CNY 147.78 billion (USD 21.88 billion), a year-on-year decrease of 1.8%. Revenue from mobile games, accounting for 74.75% of total industry revenue, declined for the first time ever. From 667 million during last year’s Spring Festival (February 2021), the total number of users has fluctuated below 666 million, a year-on-year decrease of 0.13%. The main reason for the decline in revenue and users, CADPA thinks, is COVID, leading to decreased consumption and higher corporate costs. Also, there are several obvious factors behind the gaming industry’s troubles, for example, the government has almost frozen approvals of new games.

The government’s ongoing squeeze on the “platform economy” has resulted in hefty fines for Tencent, Alibaba and various other tech companies for monopolistic behavior, reducing their appetite for new product development and marketing in gaming and other sectors in which the government takes a dim view.

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Niji Narayan

Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.