APAC and China are pivotal to innovation, scale, and spending power in games

• Hat Trick Investment’s Wenfeng Yang and Fingersoft’s Jinni Lü explain why China is a crucial game market for global success.
• APAC is a “primary growth engine and innovation hub for the global game sector”, says Lü.

With Asia’s top game expo fast approaching, we’ve talked to some prominent industry experts speaking at Pocket Gamer Connects Summit Shanghai on July 30th, which precedes ChinaJoy that runs from August 1st to 4th. 

Despite diverse business models, all unite under the vision that Asia-Pacific (APAC) is imperative to any game company aiming for global success. In particular China, which accounts for the world’s biggest and most lucrative games market, is hailed as a key hub, yet one that presents its own complexities. Understanding this sector could unlock immense opportunities.

Hat Trick Investment gaming MD Wenfeng Yang explains that China is especially compelling due to its deep and diverse talent pool.

“Over the past 20 years, Chinese developers have excelled in genres such as 4X strategy and RPGs. Looking ahead, we also see strong growth potential in casual and puzzle games," he says.

Yang and his team recently launched the Big Bang Accelerator (BBX) in Shanghai, an incubation program supporting the region’s top-tier game developers, innovators and entrepreneurs to bring their visions to life. Looking to connect with what he describes as “the frontline producers in China”, Hat Trick is coming to Shanghai in order to understand trends better and identify where “real innovation is happening”. 

He highlights the transition from IAP to IAA and hybrid monetisation models as part of the changing innovative landscape, also adding the rise of specific casual genres and the growth of IP-driven triple-A games. 

Jinni Lü, BD manager at Fingersoft - the Finnish mobile game studio behind global hits Hill Climb Racing and Hill Climb Racing 2 - is also visiting Shanghai for PG Connects Summit Shanghai and ChinaJoy to get a better grasp of Chinese market trends, besides meeting the studio’s publisher MyGamez. 

Home of innovation

Hitting a total of three billion downloads, Lü says the Chinese market is hugely important to Fingersoft, accounting for an impressive “nearly one billion downloads” of its mobile titles.

More broadly, she sees APAC as a “primary growth engine and innovation hub for the global game sector”. For any company looking to succeed globally, a clear strategy and presence in the region is a must.

Accounting for the majority of mobile game revenue, Yang also calls APAC “critical to the global games industry”. He says that China and Japan make up around 70% of the global mobile market, putting APAC in the forefront of where “innovation, scale, and spending power converge".

Entering the APAC game sector, and particularly the Chinese, doesn’t come without challenges. Lü emphasises that a successful approach requires “more than just a business plan, it requires a profound understanding of its cultural nuances and the consistent trust establishment with local partners.”

Change brings opportunities

Despite a host of hurdles, Yang highlights key signs that change is taking place. One of them is the new policy implemented by the local Shanghai government, allowing games developed by foreign entities in Shanghai to qualify for domestic ISBN approval.

“This significantly lowers the barrier to entering the Chinese market, making it an especially appealing opportunity for global developers," says Yang.

Choosing to focus on opportunities, he explains that game investment in China has cooled recently, but this unlocks rare prospects for international investors to step in.

Another change he sees is that many experienced games industry professionals in China “especially those with deep expertise in live operations” are being let go.

“These veterans represent a highly valuable and underutilised talent pool for global companies looking to strengthen their live operations capabilities."

Out of hyper-competitive markets like China’s, emerges what Yang calls “resilient and high-performing teams”, which surely provides a strong advantage for any global studio looking to scale.

Tickets are now available for Pocket Gamer Connects Summit Shanghai on July 30th - book yours today. Each ticket grants an exclusive one-day entry pass to ChinaJoy (August 1st).