Chinese Video Game Studios Thrive Amid Global Challenges
Chinese video game studios are continuing to expand their presence in overseas markets, undeterred by geopolitical tensions. Despite global political and economic turbulence, the majority of Chinese gaming companies with an international presence remain largely unaffected, according to a recent survey conducted by consultancy CNG and China’s video gaming industry association.
While some expected these tensions to have a significant impact, only 9.1 percent of the 33 companies surveyed reported a “relatively big” influence on their overseas operations. Instead, the survey revealed that excessive competition emerged as a major concern, affecting a third of the respondents’ overseas revenue. Other challenges highlighted included a lack of local talent and the rising cost of acquiring online traffic.
Chinese gaming companies have been actively seeking growth opportunities beyond China’s borders, driven by economic headwinds in the domestic market and stricter licensing requirements. However, the survey showed that their combined overseas revenue declined by 5.7 percent in 2023, marking the second consecutive year of decrease.
The top three international markets for Chinese video gaming firms are the United States, Japan, and South Korea, which collectively account for more than half of their overseas revenue. Additionally, Germany, France, Indonesia, Canada, and the United Kingdom are also popular destinations for these companies.
Despite the challenges faced by Chinese video game studios, the global gaming market experienced robust growth, reaching a total value of 1.17 trillion yuan ($165 billion) in 2023, representing a 6 percent increase compared to the previous year. This demonstrates the immense potential for growth in the global gaming industry.
To boost their exports, approximately half of the surveyed companies plan to acquire global intellectual property resources and expand their gaming product offerings in 2024. Additionally, two-thirds of respondents aim to collaborate with established brands and intellectual property resources, while 63.6 percent plan to promote their games through key opinion leaders.
Chinese video game studios are committed to expanding their presence and revenue in overseas markets, showcasing their determination to capitalize on growth opportunities beyond the borders of China. Regardless of geopolitical tensions, these studios remain focused on delivering engaging and innovative gaming experiences to a global audience.
Frequently Asked Questions
1. What challenges do Chinese video game studios face in overseas markets?
Chinese video game studios primarily face challenges such as excessive competition, a lack of local talent, and the rising cost of acquiring online traffic. However, geopolitical tensions have had a minimal impact on their operations.
2. Which countries are the main target markets for Chinese video gaming firms?
The United States, Japan, and South Korea are the top three international markets for Chinese video gaming firms, accounting for more than half of their overseas revenue. Germany, France, Indonesia, Canada, and the United Kingdom are also popular destinations.
3. Has the global gaming market experienced growth despite challenges?
Yes, the global gaming market has experienced robust growth. In 2023, it reached a total value of 1.17 trillion yuan ($165 billion), reflecting a 6 percent increase from the previous year.
4. What strategies are Chinese video game studios adopting to boost exports?
To boost exports, Chinese video game studios are planning to acquire global intellectual property resources, expand their gaming product offerings, collaborate with established brands and intellectual property resources, and promote their games through key opinion leaders.
5. What is the future outlook for Chinese video game studios in overseas markets?
Chinese video game studios are committed to expanding their presence and revenue in overseas markets, emphasizing their pursuit of growth opportunities beyond China’s borders. Despite challenges, these studios remain focused on delivering captivating gaming experiences to a global audience and are poised to leverage the thriving global gaming industry.
The source of the article is from the blog portaldoriograndense.com