China's Online Gaming Maintained Growth Momentum in Q2 2016

Source:iResearch September 18,20169:31 AM
China’s online gaming revenue didn’t have significant growth in Q2 2016 due to seasonal reasons. The revenue totaled 41.6 billion Yuan, up 0.9% compared to the previous quarter and rising 24.2% from a year earlier. Meanwhile, mobile gaming revenue amounted to 24.4 billion Yuan, increasing 15% compared with the previous quarter and soaring 120.3% versus the same period of the previous year. Meanwhile, PC gaming revenue declined to 17.2 billion Yuan, falling 14.4% versus the previous quarter and decreasing 23.4% from a year earlier. and the market share of PC gaming was squeezed by mobile gaming in China in Q2 2016.
iResearch views that the decreasing of PC gaming and the growth of mobile gaming in Q2 2016 can be attributed to the several factors. Firstly, most students had less time for gaming, since they entered their exam weeks in Q2. Secondly, the competition between mobile gaming and PC gaming was increasingly fierce as mobile games became more competitive and appealing. What’s more, newly released role play mobile games pulled up the average spending on mobile game in Q2, which naturally accelerated the growth of China’s mobile gaming revenue. Lastly, China mobile gaming companies started to explore overseas gaming market in Q2 and this contributed to the growth of mobile game players. 
Data from mGameTracker, a mobile gaming market measuring product launched  by iResearch, shows that 37 mobile games have ever entered the top 10 iOS App list in Q2 2016. Tencent's games in top places of the list decreased. Besides two mobile gaming giants Tencent and NetEase, other 20 companies, 7 more than that in Q1, were  listed among the top 10 mobile game publisers in App Store.

A large number of role play mobile games were released in Q2 2016, and two main mobile game types, MMORPG of Chinese style and game adopted from Japanese comics had similar market shares in Q2.

In Q2 2016, domestic animation, most from Tencent, were generally about funny topics, monster killing and folk stories, which were more close to Chinese audience’s life. Top animations all have the tendency of the pan-entertainment and promoted the development of domestic animations. What’s more, not only old series but also newly released works with high word of mouth were listed in the Top 10, indicating that domestic animation sector had achieved great improvements in Q2. 

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