China's Online Gaming Revenue Rocketed up in Q1 2017

Source:iResearch June 12,20173:18 PM
Thanks to the stimulation of winter holiday and the Spring Festival, the revenue of China’s online gaming rocketed up in Q1 2017 and attained 583 billion Yuan with a QoQ growth of 19.2% and a YoY growth of 38%. Competitive games like Wangzhe Rongyao, Majiang and poker was the top three popular games among Chinese during the Spring Festival. At the same time, the online gaming companies promoted lots of charging-reward activities during the Spring Festival, which further raised the APRU value of the games.

Generally speaking, number of China’s online game players was relatively stable in Q1 2017, Gamers using PCs to play games dropped slightly, while gamers using mobile devices to play gaming had a steady growth. This indicated that more game players turned from PCs to mobile devices.
In Q1 2017, the gaming revenue of Tencent and NetEase took up 65.8% of the online gaming market in total, slightly higher than their share (63.5%) in 2016.
The market share gap between Tencent and Netease in PC gaming market widened in 2017. Tencent grabbed a dominant market share with its core games like LoL, DNF and CF3. However, NetEase devoted much in mobile gaming development, for instance, developing the creative mobile game Yinyangshi and mobilizing its own PC IP games like Menghuan Xiyou, Qiannv Youhun and Dahua Xiyou, and narrowed the gap between Netease and Tencent in mobile gmaing.

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