China’s Online Industry Should See $5.8 Billion In Revenue For 2011

By M.H. Williams

Niko Partners, a research firm focusing on Asian game markets, has released its annual review and market forecast for China’s games industry.  The report predicts continued market growth through 2015, with social games being the primary driver.  Niko Partners estimates China’s market size will total $5.8 billion in 2011, a rise from $4.8 billion the previous year.

The report contains new data based on extensive surveys in 10 cities across China.  The new data points to a rise in social gameplay in the home or office, while China’s internet cafés remain the domain of online MMOs.  2009 was the first year to see social networking sites in China, with $80 million in revenue estimated that year.  In 2010, that number grew to almost $500 million.

The World Bank predicts a growth-rate of 9.3 per cent for China’s gross domestic product over the course of the year.  Niko Partners believes the growth-rate of online game revenues will outstrip that, standing at 21.4 per cent.

“Chinese game companies are looking for even more growth beyond their borders,” says Lisa Cosmas Hanson, the firm’s managing partner. “And they have more experience operating online games and social games than anyone else in the world.”

The full report, “2011 China’s Games Industry Annual Review and Five-Year Forecast Report”, is available here.