Report: Chinese games market revenue to fall to $45 billion in 2022, first decline in 20 years

The Chinese video game market is expected to decline in 2022, according to the latest data by Niko Partners. There are many reasons for the downfall, including lower mobile spending and restrictive regulations.

• Niko Partners expects the Chinese games market to generate $45.44 billion this year, down 2.5% year-over-year.
• It is the first decline since the company started tracking the country’s market 20 years ago.
• Mobile games, which account for 66% of total revenue, are expected to decline 5.1% year-over-year.
• PC, on the other hand, will increase 2.1% this year, marking the first growth after four consecutive years of decline. It accounts for 30% of China’s total games revenue.
• Console games will also help offset the decline in the mobile segment, growing 14.7% year-over-year.

“China’s economy, Zero COVID policy, impact of youth gamers regulations, and a lack of new game ISBN licenses have contributed to the adverse changes in the domestic games market,” Niko Partners founder Lisa Hanson said.

• According to Niko Partners, the number of gamers in China will decline from 706 million to 701.8 million in 2022. This is the second year of decline, with youth gamer regulations being the main reason behind the user drop.
• Analysts expect the Chinese games market to show a compound annual growth rate of 2.6% in the next five years, reaching $53 billion in revenue in 2026.
• The number of gamers is also forecasted to grow to 754.5 million in 2026.
• Hanson noted that Niko Partners observes “momentum in the economy, esports, PC gaming, and enthusiasm among China’s 700 million+ gamers,” forecasting a market recovery.