Back in February, investment bank Digi-Capital made two bold forecasts concerning revenue from video games.

The first centred on the growing sales share of mobile and online gaming in the video game landscape, while the second focussed on the increasing importance of the Chinese gaming market through 2014.

Corroborating Digi-Capital's notion that the Far East nation will soon become the major economic force in gaming, Pearl Research has published a 150-page report outlining the huge gains among Chinese companies.

Sustained growth

Overall, China's online game market increased by 25 percent to $5 billion last year, as Tencent led the charge with $1.4 billion in revenue.

This rate of growth exceeds that of its US counterpart's, and could see the Chinese market reach $8 billion in 2014.

Pearl Research's suggestion that Tencent's recent acquisition of Riot Games marks the beginning of a period of sustained takeovers and mergers by Chinese operators also falls in line with Digi-Capital’s earlier projections.

With stockpiles of cash burning a hole in their collective portable pockets, the Chinese gaming giants will look to expand their presence overseas to make good on the analysts’ predictions.

[source: VentureBeat]