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AbacusCulture

China’s gaming market falls to #2 amid tightening regulations

Some netizens don’t care about the US retaking the top spot, but developers worry about Chinese talent

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China’s gaming market falls to #2 amid tightening regulations
Josh Ye
This article originally appeared on ABACUS

Rapid growth in China’s gaming industry in recent years might have led some to think it was invulnerable. Now it looks like a bleaker regulatory environment is taking a toll.

A new report on the gaming industry this year shows the US is poised to once again become the world’s largest gaming market since it was overtaken by China in 2015. While some Chinese netizens said their country doesn’t need this dubious honor, others think the industry, which has been recently hit hard by regulations, needs a shot in the arm.

As growth slows, publishers and developers have gotten concerned, too.

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Luis Wong of Beijing-based publisher Indienova said that China’s regulations have been changing too fast and “there’s not a clear path” for the industry going forward.

“I think the future will bring more regulation, but hopefully [there will be] more detailed guidelines on how to enter the market, and a clear vision for the next [few] years,” Wong said.

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China’s gaming market is still massive, though. The latest Global Games Market report from gaming analytics firm Newzoo estimates that consumer spending in China’s games industry will cap off at US$36.5 billion this year. That’s only slightly behind the US$36.9 billion estimated for the US market.
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