Data & Research

Chinese mobile market was $2 billion in H1 2014, but 92% of games are loss-making

Chinese mobile market was $2 billion in H1 2014, but 92% of games are loss-making

Everyone's interested in measuring the growth of the Chinese games market.

On such outfit is the Chinese government via its State Administration of Radio, Film, and Television organisation.

At ChinaJoy 2014, it reckoned that overall sales for the first six months was $8 billion (RMB 49.6 billion).

That's up 46 percent year-on-year.

And the mobile game sector are growing fastest, making up 25 percent of the market - $2 billion (RMB 12.5 billion).

Structural issues

Yet as many commentators - including this one - have pointed out, there's a significant structural issue in the sector - there are a lot of developers - especially mobile developers - who aren't making any money.

The report reckons that 92 percent of all mobile games are loss-making.

That's partly the case because mobile game development is the rising sector in China so many PC developers and publishers have shifted their focus to mobile.

That's resulted in a glut of games, which is constrained because of the fragmentation of the Chinese Android market via channels such as Tencent, Baidu's 91 Wireless and Qihoo 360.

[source: GamesinAsia]


Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.

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