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Press
Release
Games market in China grew 60% to $1.66 billion in 2007, expected
to exceed $3.4 billion in 2010
Please contact us at 415-738-7660 or email research (at) pearlresearch.com
for a sample of the report. Download
the table of contents here.
San Francisco, CA, March 19, 2008 – Pearl Research
forecasts the online games market in China will exceed $3.4 billion
in 2010. The market grew more than 60% to reach $1.66 billion in 2007.
These findings are contained in Pearl Research’s exclusive 130-page
“Games Market in China” study.
Allison Luong, Managing Director of Pearl Research said, “The
year 2007 exceeded expectations with the market growing more than 60%,
driven by compelling and diverse content, free-to-play games, and rising
demand for leisure and technology products. Chinese-themed and advanced
casual games are expected to drive revenues in 2008 and beyond.”
“A key trend to track in 2008 is rising average-revenue-per-user
(ARPU). Certain online games are reaching $7 to $12 a month in average-revenue-per-user,
significantly higher than past averages of $5 or less per month. I believe
there is still room for average-revenue-per-user to grow, as game operators
enhance monetization efforts from free-to-play games,” said Allison
Luong.
Pearl Research’s key findings:
- China’s most popular online game, Netease’s “Fantasy
Westward Journey” has 1.66 million peak concurrent users, followed
by Giant’s “Zhengtu Online” with 1.52 million peak
concurrent users. Successful MMORPGs can be highly profitable. Game
operator Giant Interactive generated the majority of its $209 million
revenues from one title, “Zhengtu Online.”
- Game operators in China experienced strong revenue growth in 2007.
The biggest gainers were game operators Shanda (up 49% to $338 million),
Giant (up 274% to $209 million), The9 (up 30% to $175 million) and Perfect
World (up 593% to $95 million). Coinciding with the revenue growth was
a wave of initial public offerings (IPOs) by game operators Giant, Perfect
World, NetDragon and KingSoft.
- The study also contains highlights from Pearl Research’s Phoenix
Generation reports, consisting of more than 200 one-on-one, personalized
interviews conducted with Chinese youth. One key finding is that games
are a social phenomenon, with gamers often playing casual games to connect
with friends and flirt with others. Gamers cite cheating and account
thefts as a top reason for abandoning a game and seek out game operators
with a reliable reputation.
Pearl Research’s “Games Market in China” study provides
an in-depth analysis of the Chinese games market. The report contains
2006 to 2011 forecasts; inhibitors and drivers to growth; deep marketplace
analysis; profiles of key market players; and strategic conclusions.
Please call (+1) 415-738-7660 or email research (at) pearlresearch.com
to inquire about this report.
About Pearl Research
Pearl Research, a business intelligence and consulting firm, specializes
in the digital entertainment and technology markets with a special focus
on emerging markets and platforms. Based in San Francisco and China,
Pearl Research publishes in-depth research reports and provides customized
research and consulting services. For more information, please visit
http://www.pearlresearch.com.
Contact
Pearl Research
pr (at) pearlresearch.com
PH: 415-738-7660 ext. 4
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