The rapid overseas expansion of Chinese domestically-produced games is gaining momentum.
Globalization has emerged as a significant trend in the Chinese gaming industry during the past year. In 2022, Chinese game companies have proactively embarked upon international markets by introducing their games abroad or by generating more income through representation and promotion of foreign game products.
According to the China Press and Publication Research Institute's 2022-2023 Annual Report on the Digital Publishing Industry in China, Chinese gaming companies have been increasing their global reach in 2022. Despite challenges such as the global economic downturn, increased foreign regulatory scrutiny on the gaming industry, and various geopolitical tensions, Chinese gaming products generated an impressive USD 17.346 billion in sales revenue across overseas markets.
Chinese gaming companies encounter numerous obstacles in their quest for global expansion. These include managing intricate localization procedures, adapting to changes in the global business climate, staying abreast of evolving foreign legal policies, addressing problems with global distribution channels, and managing escalating global competition.
In 2022, Chinese mobile game revenue in the United States, Japan, South Korea, and Germany accounted for more than 56% of the global market. Chinese game product distributors achieved growth in Japan, the United Kingdom, and Germany for two years in a row, and increased the quantity of game products, according to the Top 100 products of global mobile gaming markets.
The revenue from Chinese-made games in foreign markets declined by 3.7% from last year, representing the first drop since 2018. Moreover, the growth rate of Chinese mobile games decreased in the United States, Japan, South Korea, Germany, and the United Kingdom. Specifically, Germany and the United Kingdom experienced conspicuous declines in revenue growth, with reductions of 15.7% and 16.7% in 2022, respectively.
In terms of future expansion, emerging markets like the Middle East, Africa, Southeast Asia, and Latin America have substantial growth potential. These markets are expected to be major growth drivers for the sustained development of Chinese video games in global gaming markets.
In terms of domestic industry growth, gaming companies are taking active steps to promote overseas expansion. Supporting services for overseas expansion are steadily emerging with the backing of all parties involved. The ecological chain for the globalization of gaming markets is advancing towards greater maturity.
Game products are experiencing changes in user preferences in foreign markets. There are more prospects for game development overseas in the sub-genres of IP-adapted games, casual games, and other gaming products.