China’s game industry aims for overseas expansion
China Economic Net
Guangzhou: For three consecutive years, China’s homegrown games have raked in over 100 billion yuan (about 14.7 billion U.S. dollars) in annual sales revenue from overseas markets, according to the 2022 China Gaming Industry Report released recently.
The report, released at the China Game Industry Annual Conference in the southern metropolis of Guangzhou, shows that Chinese game developers have been actively expanding their business overseas.
Due to the downtrend of the global game market under the influence of COVID-19 and heated competition, sales of homegrown Chinese games in the overseas market reached 17.35 billion dollars last year, down 3.7 percent year on year, showing a smaller drop than that of the domestic market.
The major target markets for Chineses mobile games are the United States, Japan and the Republic of Korea, while the sales in other countries and regions are increasing year by year, indicating the continuous expansion of Chinese enterprises in emerging markets, according to Zhang Yijun, vice chairman of the China Audio-Video and Digital Publishing Association.
“Expanding business in overseas markets is becoming a strategic trend for more companies, and the globalization of China’s game industry is becoming increasingly noticeable,” Zhang said.
Chinese internet giant Tencent has been steadily ramping up its efforts to expand its presence in the global gaming market by boosting its technology research and development, fostering content innovation, and building international intellectual property.
Many of Tencent’s games have gained popularity worldwide, such as Arena of Valor, PUBG MOBILE and Alchemy Stars. PUBG MOBILE has been released in over 200 countries and regions worldwide, with cumulative global downloads outside the Chinese mainland surpassing 1 billion.
Game industry insiders believe that China’s game industry is expanding its global reach through deep localization and refined operations. Chinese enterprises have managed to improve their marketing efficiency by cooperating with overseas distributors and developing integrated research and business models through the establishment or acquisition of overseas studios.
To strengthen the company’s global operation and publishing capabilities, Tencent launched its overseas game business brand “Level Infinite” at the end of 2021. It provides technical empowerment, market insights, global publishing, and other support for global partners.
It currently has a business presence in regions such as Europe, the United States, the Middle East, and Southeast Asia, and aims to expand its market reach to South America, Latin America and beyond.
Regions like the Middle East, Africa and Latin America have become the new areas for growth in the overseas game market for the relatively large populations and rapidly improving network infrastructure, according to the report.
