Video games in China: Difference between revisions

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==Online gaming==
Online gaming in China represents one of the largest and fastest growing [[Internet]] business sectors in the world. As of 2022, China is the second largest market for online games after the United States.<ref>{{cite web |title=Top countries and markets by video game revenues |url=https://newzoo.com/resources/rankings/top-10-countries-by-game-revenues |url-status=live |archive-url=https://web.archive.org/web/20230326135814/https://newzoo.com/resources/rankings/top-10-countries-by-game-revenues |archive-date=2023-03-26 |access-date=6 October 2023 |website=Newzoo}}</ref> In 2023, the country has 668 million internet users playing online games and the industry was worth US$42 billion.<ref>{{Cite news |last=Feng |first=Coco |last2=Deng |first2=Iris |date=13 January 2024 |title=China’s video gaming market ended 2023 battered and bruised, but can world-beating titles and innovation save the day? |url=https://www.scmp.com/tech/article/3248249/chinas-video-gaming-market-ended-2023-battered-and-bruised-can-world-beating-titles-and-innovation |access-date=11 July 2024 |work=[[South China Morning Post]]}}</ref> 53.8% of gamers are male, 46.2% are female.<ref>{{cite web |author=Steven Millward |date=30 April 2024 |title=The Future of Female Gaming in China [Top Market Trends] |url=https://sekkeidigitalgroup.com/the-future-of-female-gaming-in-china |url-status= |archive-url= |archive-date= |access-date=11 July 2024 |work=Sekkei Digital Group}}</ref>
'''Online gaming in China''' represents one of the largest and fastest growing [[Internet]] business sectors in the world. With 457 million Internet users currently active in China, the country now has the largest online user base in world, of which two-thirds engage in online game play.<ref name="Q3 2009">[http://radoff.com/blog/2009/11/26/chinese-online-game-market-roundup-q3-2009/ Chinese Online Game Market Roundup, Q3 2009]</ref> The average online gamer in China is relatively young (18 to 30 years old), male, and has at least completed a secondary level of education.<ref name="auto">People's Daily Online. [http://english.people.com.cn/200704/13/eng20070413_366346.html "China's Online Game Industry on a Roll"]. 2007.</ref> Demographically the online gaming user base in China is very similar to base of China Internet users, most of whom live in larger cities.<ref>China Internet Network Information Center. [http://www.cnnic.net.cn/html/Dir/2007/02/05/4432.htm "19th Statistical Survey Report on Internet Development in China"]. January 23, 2007.</ref>
 
Online games in China fall into two primary categories: [[Massively Multiplayer Online Roleplaying Game|MMORPG]]s and [[Multiplayer Online Casual Game|MOCG]]s. The former have a predilection for persistent online worlds where hundreds to thousands of game players can interact simultaneously; the latter is a generic term for games played competitively online without the existence of a persistent online realm (games as simple as online [[Mahjong|Ma Jiang]] and online competitive [[card game]]s would fall under this category). In 2011, there were over 100 million Chinese MMO gamers.
 
Official Chinese statistics regarding online gaming state that as of the close of 2006 revenue from China's online gaming industry reached RMB 8 billion or around {{USD|1.04 billion}}, with earnings reaching around RMB 33 billion or {{USD|4.3 billion}}. Additionally, while [[Japan]]ese, [[United States|American]], and [[South Korea]]n companies have traditionally dominated the market, Chinese developed software now holds a 65% market share on the mainland, with an additional 20 million in revenue generated by users outside of China.<ref name="auto">People's Daily Online. [http://english.people.com.cn/200704/13/eng20070413_366346.html "China's Online Game Industry on a Roll"]. 2007.</ref>
 
The online gaming market in China grew to $1.6 billion in 2007,<ref>{{cite web |url=http://www.zdnet.com/blog/itfacts/online-games-market-in-china-to-reach-3-bln-by-2010/14210 |title=Online games market in China to reach $3 bln by 2010 |newspaper=ZDNet |date= March 22, 2008 |access-date= November 27, 2014}}</ref> and is expected to exceed $3 billion in 2010. According to another estimate, in 2007, China's online games market was worth about $970 million, with over 36 million gamers.<ref>{{cite web |url=http://www.zdnet.com/making-a-play-for-chinas-online-games-2062039030/ |title=Making a play for China's online games |newspaper=ZDNet |date= March 17, 2008 |author=Vivian Yeo |access-date= November 27, 2014}}</ref>
 
China is now the world's largest online gaming market, contributing one third to the global revenue in this sector in 2009, or 56 percent of the Asia Pacific total.<ref>{{cite web | url=http://www.chinadaily.com.cn/bizchina/2010-06/23/content_10010928.htm | title=China's online game revenue tops the world | work=chinadaily.com.cn | date=2010-06-23 | access-date=August 14, 2016 | author=Hao Yan}}</ref>
 
There are 368 million Internet users playing online games in the country<ref>{{cite web |url= http://www.techinasia.com/chinas-mobile-internet-users-outnumber-pc-internet-users/|title= China's mobile internet users now outnumber its PC internet users|author= Paul Bischoff|date=2014-07-22|access-date= 2014-08-04|work= Tech In Asia}}</ref> and the industry was worth $13.5 billion in 2013. About 73% of gamers are male.<ref name="auto1">{{cite web|url=http://www.youxistory.com/2018/04/chinas-2017-game-industry-market-report.html|title=China's 2017 Game Industry Market Report|first=Johanna |last=Armstrong|date=2018-04-12|work=Youxi Story|access-date=2018-03-12}}</ref>
 
===Games===
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Today, the video game market is dominated by the Tencent Games division of [[Tencent Holdings]], which is estimated to contribute to 46% of the overall revenue in China, and nearly 10% of the global video game market as of 2017, making it the largest video game company in the world.<ref name="uscc"/> [[NetEase]], which contributes to around 15% of overall revenue in China, is the second largest video game company in China, as well as the seventh largest in the world as of 2017.<ref name="uscc" /><ref>{{Cite web|date=2017-03-23|title=Tencent leads the top 25 public game companies with $10.2 billion in revenues|url=https://venturebeat.com/2017/03/23/tencent-leads-the-top-25-public-game-companies-with-10-2-billion-in-revenues/|access-date=2021-08-21|website=VentureBeat|language=en-US}}</ref> Other major players include [[Perfect World (company)|Perfect World]], Shunrong, and [[Shanda]].<ref name="uscc"/>
 
These companies are noted for having made aggressive investments in foreign video game developers, particularly from South Korea and the United States, and for making strategic agreements with other entities to serve as the China-based operating arm for foreign interests to meet Chinese government regulations.<ref name="uscc"/> Notably, Tencent's acquisitions have included: {{USD|400 million}} to acquire [[Riot Games]] in 2011 to gain right to the online game ''[[League of Legends]]'' and {{USD|8.6 billion}} for [[Supercell (video game company)|Supercell]] in 2016 for its mobile game ''[[Clash of Clans]]''.<ref name="uscc"/> Among major investimentsinvestments include approximately 5% of [[Activision]] in 2013,<ref>{{cite web | url= https://www.fool.com/investing/2018/02/13/tencent-owns-stakes-in-these-4-us-companies.aspx | title = Tencent Owns Stakes in These 4 U.S. Companies | first1= Leo | last1 = Sun | date = February 13, 2018 | access-date = September 25, 2019 |work = [[The Motley Fool]] }}</ref> a 40% interest in [[Epic Games]] in 2013,<ref name="tencent">{{cite web |url=https://www.polygon.com/2013/3/21/4131702/tencents-epic-games-stock-acquisition |title=Tencent's $330M Epic Games investment absorbed 40 percent of developer [Updated] |last1=Crecente |first1=Brian |date=March 21, 2013 |website=[[Polygon (website)|Polygon]] |access-date=August 24, 2016 |archive-url=https://web.archive.org/web/20160820045446/http://www.polygon.com/2013/3/21/4131702/tencents-epic-games-stock-acquisition |archive-date=August 20, 2016 |url-status=live}}</ref> and a 5% interest in [[Ubisoft]] in 2018.<ref>{{cite web| url = https://www.polygon.com/2018/3/20/17144094/ubisoft-vivendi-sells-stake-tencent-deal | title = Ubisoft finally fends off Vivendi takeover bid through Tencent partnership | first1 = Samit | last1= Sarkar | date = 20 March 2018 | access-date = 23 April 2019 |work = [[Polygon (website)|Polygon]] }}</ref>
 
The 10 largest online game companies by revenue in 2017 are:<ref name="auto1">{{cite web |last=Armstrong |first=Johanna |date=2018-04-12 |title=China's 2017 Game Industry Market Report |url=http://www.youxistory.com/2018/04/chinas-2017-game-industry-market-report.html |access-date=2018-03-12 |work=Youxi Story}}</ref>
#[[Tencent]]: Tencent Games is the Interactive Entertainment Division (aka IED) of Tencent.
#[[NetEase]]: a popular online portal in China, also branched out in the space of MMORPGs with the release of Westward Journey. The game, based on ancient westward travels on the [[Silk Road]] (a popular theme from Chinese developed MMORPGs), has gone through two iterations; it was re-released as Westward Journey II due to numerous problems with the initial release, and its game engine was used to develop [[Fantasy Westward Journey]], which is currently the most popular MMORPG in China (based on PCU numbers).<ref>Gamasutra.[http://gamasutra.com/php-bin/news_index.php?story=13369 "The China Angle"]. April 3, 2007</ref>
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#Elex
#[[IGG Inc.|IGG]]
#[[Alpha Group Co., Ltd.|Alpha Group]]
#Century Huatong Group (owner of [[Shanda]]). [[Shanda]] produces and supports many popular MMORPGs. The company is significant because it introduced a new [[online payment]] system with the release of [[Legend of Mir 2]] in 2001. Instead of charging users for the initial purchase of the game, Shanda gave the software away free-of-charge and decided to charge users for time spent playing in game. This payment system specifically counteracted piracy because the company could maintain easier control over the time users spent in the game, rather than attempt to limit the game's distribution.<ref>Gamasutra.[http://www.gamasutra.com/php-bin/news_index.php?story=13170 "The China Angle"]. March 20, 2007.</ref> Shanda maintains a large number of MMORPGs in China developed by Western, Korean and native Chinese companies; the latter two regions produce Shanda's most popular games. The company also maintains numerous casual games as well, with platforms supporting [[chess]] and other non-persistent world games.<ref>[https://web.archive.org/web/20040723033418/http://www.snda.com/en/index.jsp Shanda Entertainment]</ref>
#Kunlun Tech
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Video games are regulated through the government and the [[Chinese Communist Party]] as with [[Censorship in China|most mass media in China]], but further, as video games are seen as a cultural benefit, additional agencies are involved in promoting the growth of video games.
 
==== Ministry of Industry and Information IndustryTechnology ====
The [[Ministry of Industry and Information IndustryTechnology]] (MIIMIIT) ofwas theformed [[China|People'sin Republic2008, superseding the Ministry of China]]Information (中华人民共和国工业和信息化部)Industry, which was formedestablished in the late 1990s through the integration of the Ministry of Post and Telecommunications and the Ministry of Electronics Industry. The agency's primary goals include the regulation and promotion of Chinese telecommunications and software companies which include online gaming. MII is also responsible for a number of initiatives aimed at increasing the number and prominence of natively produced online games. One example of such involvement is the inclusion of online gaming in the 2006–2010 plan for software and information service development.<ref name="auto"/>
 
Listed here are the ministry's stated objectives involving online gaming:<ref>[https://fas.org/nuke/guide/china/agency/mii.htm Ministry of Information Industry – China Nuclear Forces<!-- Bot generated title -->]</ref>
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The ministry is also responsible for a number of initiatives aimed at increasing the number and prominence of natively produced online games. One example of such involvement is the inclusion of online gaming in the 2006–2010 plan for software and information service development.<ref name="auto"/>
 
====General AdministrationNational of PressRadio and PublicationTelevision Administration ====
The [[General Administration of Press and Publication]] (GAPP) (中华人民共和国新闻出版总暑) iswas responsible for monitoring and regulating publication of print based media, electronic media, and audio-visual products (including online games).<ref>chinaculture.org. [http://www.chinaculture.org/gb/en_artists/2003-09/24/content_26984.htm "General Administration of Press and Publishing of PRC"].</ref> GAPP has also been instrumental in combating the growing problem of [[Internet addiction]] and [[Video game addiction|game addiction]] in China by teaming up with eight other government outlets concerned with the growing effect of game play on China's youth. Towards this end, GAPP worksworked with other agencies, including the Central Civilization Office, Ministry of Education, Chinese Communist Youth League, Ministry of Information Industry, Ministry of Public Security, All China Women's Federation, and China's Care for the Next Generation Work Commission.<ref>{{cite web|work=China Tech News|url=http://www.chinatechnews.com/2007/04/11/5240-chinese-ministries-schedule-anti-addiction-game-system/|title=Chinese Ministries Schedule Anti-Addiction Game System|date=April 11, 2007}}</ref> GAPP also initiated the China National Online Game Publication Project in 2004. The intent of the project was to promote native game development through the use of government subsidies to game developers. In its third year, the project is to run through at least 2008, and has provided an estimated 300 million RMB to 16 Chinese game development companies.<ref>TDC Trade.[http://www.tdctrade.com/alert/cba-e0501c-2.htm "Business Alert - China"]. January 2005.</ref> The State Administration of Radio, Film, and Television (SARFT) affected the world of Chinese online games in 2004 by instating a blanket ban on computer game related commercials in the state-run media. The only company to directly contradict this ban is Chinese game provider The9, which teamed with [[Coca-Cola]] to jointly promote the release of the popular Western [[MMORPG]] [[World of Warcraft]] in 2005. Besides this instance, the online game market has thrived without much media promotion.<ref>{{cite web|author=Shang Koo|work=Gamasutra|url=http://www.gamasutra.com/php-bin/news_index.php?story=13523|title=The China Angle: Rumors And Regulations|date=April 17, 2007}}</ref> The SARFT and GAPP were merged to form the State Administration of Press, Publication, Radio, Film, and Television in 2013, which was later transformed to the [[National Radio and Television Administration]] in 2018.
 
====State Administration of Radio, Film, and Television====
China's [[State Administration of Radio, Film, and Television]] (SARFT; 国家广播电影电视总局) affected the world of Chinese online games in 2004 by instating a blanket ban on computer game related commercials in the state-run media. The only company to directly contradict this ban is Chinese game provider The9, which teamed with [[Coca-Cola]] to jointly promote the release of the popular Western [[MMORPG]] [[World of Warcraft]] in 2005. Besides this instance, the online game market has thrived without much media promotion.<ref>{{cite web|author=Shang Koo|work=Gamasutra|url=http://www.gamasutra.com/php-bin/news_index.php?story=13523|title=The China Angle: Rumors And Regulations|date=April 17, 2007}}</ref>
 
===Crime===
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[[Category:Video gaming in China| ]]
[[Category:Video game culture]]
[[Category:Science and technology in the People's Republic of China]]
[[Category:Chinese culture]]