The revenue of the Chinese video game market may fall by the end of 2022. For the first time in 20 years

According to the forecast of Niko Partners, the revenue of the Chinese video game market by the end of 2022 will amount to $45.4 billion. This is 2.5% less than a year earlier. For almost a quarter of a century, there has been no drop in indicators.

Analysts explain the current situation by a whole complex of reasons that overlapped with each other in time. Apart from each other, they might not have led to such consequences. However, all together had a strong impact on the market.

We are talking about the following negative factors:

The ambiguous situation in the Chinese economy (for example, the construction sector is on the verge of crisis, stagnation or recession is observed in other sectors);

▫️zero tolerance policy for COVID (unnecessarily strict anti-coronavirus restrictions affecting the functioning of entire regions);

▫️children can no longer play fully (they can’t spend more than three hours a week playing games);

▫️a small number of licenses issued (without a license in the country, you cannot release the game, less than a hundred permits are issued for the whole of China per month).

As a result, the number of players in the country will even fall by the end of this year: from 706 million to 701.8 million.