China’s gaming market continues its slowdown this year
Jun 19, 2019 (China Knowledge) - China is expected to bring in USD 36.5 bln in gaming revenue this year, down from USD 37.9 bln in 2018. This is according to a market report on global games by gaming analytics company Newzoo released on Tuesday.
"A nine-month freeze on game approvals during 2018 in China left its mark on the domestic games market," said Tom Wijman, senior market analyst at Newzoo.
In order to reduce the exposure of violent games contents to its youth, China put a hiatus to issuing new gaming titles for 9 months since last March. Meanwhile, China made a reshuffle of its content regulatory agencies.
During the hiatus, gaming companies were still allowed to file applications and distributing new titles. However, these companies were banned from making money from these games.
Last December, China resumed its application processing. However, in February, the country also stopped accepting applications for new games as it works through the enormous backlog.
Chinese gaming giant, Tencent Holdings, saw a 32% net profit drop in Q4 2018 and its slowest annual profit growth in 13 years for all of 2018. The slowdown in revenue growth was partly due to the company’s inability to monetize its smartphone games, which is Tencent’s largest single revenue driver.
It is estimated that more than 7,000 games are still waiting for approval. According to Newzoo, the impact of the hiatus will continue to dampen the market throughout 2019. The research company also estimated that China will take up the top position in the video game market by revenue in 2020.
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