92% of Chinese mobile games lose money

Recently, people have been writing about the Chinese market often, they often talk about the crazy money that it earns. But what problems local developers face is rarely advertised. The Chinese regulator SAPPRFT recently published a report stating that not everything is as good as it looks from the outside.

According to the report, in the first half of 2014, total revenue from game sales in China amounted to $8.1 billion. Of these, $2 billion was spent on mobile games.

It's a crazy number.

But at the same time, according to analysts at SAPPRFT, only 8% of Chinese mobile games earn money. The remaining 92% are losing.

This is partly due to the fact that 60% of users leave the project at the payment stage, which, on average, lasts 100 seconds (patience, in turn, runs out after 5 seconds for most users). If the content payment tools were more advanced, according to SAPPRFT, the bounce rate would be lower.

The second important reason is the fact that more than 50% of income is eaten up by channels.  There can be a lot of intermediaries between distribution platforms and developers of a particular product in China.

Source: http://game.163.com