The Chinese gaming industry is recovering after a harsh 2022, probably one of the most challenging years in its history. The government restrictions cut Chinese gaming revenues by a massive $7.2bn last year, while the country lost over 66 million gamers.
Although the number of gamers remains below 2021 levels, China`s gaming revenues are expected to recover significantly this year.
According to data presented by SportsLens.com, Chinese gaming revenues are expected to grow by 18% year-over-year and hit $107.3bn in 2023.
More than 28% of Global Gaming Revenue Comes from China
As one of the most popular forms of entertainment, gaming is an integral part of Chinese culture. Between 2017 and 2021, the number of gamers in the country jumped by 40% and hit close to 780 million, or 30% of the world`s total that year. With millions of people spending money on video games, Chinese gaming revenues skyrocketed.
According to a Statista survey, the world`s gaming capital saw revenues surge by 91% between 2017 and 2021, rising from $50.8bn to $97.4b. However, the impressive growth was stopped by government restrictions in 2022.
Due to an eight-month freeze on approving new titles, stricter government censorship of game content, and tighter rules restricting playing times for minors, Chinese gaming revenues dipped by 7% year-over-year. At the same time, the country`s gaming sector lost 8% of total user count.
Statista expects the negative trend to stop this year, with Chinese gaming revenues growing by 18% year-over-year, the same as before 2022.
The double-digit revenue growth will push China`s gaming revenues to a massive $107.3bn, or 28% of the world`s total this year. In comparison, the United States is expected to hit a 24% market share with $89.5bn in gaming revenues. Japan, the world`s third-largest gaming industry, follows with $72.3bn and a 19.4% share. South Korea and the United Kingdom will make less than 8% of global gaming revenues this year.
20 million Less Gamers than in 2021
While the world`s gaming capital is expected to see significant revenue growth this year, the number of gamers will remain below 2021 levels.
After losing 66 million gamers in 2022, the Chinese gaming segment will see a 6% user growth this year, with the total number of gamers reaching almost 760 million. However, that is still 20 million less than two years ago, when the market had nearly 780 million users.
Statista expects the number of gamers in China to continue growing in the following years and hit over 840 million by 2027. The country`s gaming industry will see a massive 50.2% penetration rate by then, up from 41.09% projected in 2023.