China Cloud Gaming Technology Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The market for cloud gaming in China is expected to register a CAGR of 20.2% over the forecast period. With China's population spending heavily on mobile games, the industry's growth rate is five times that of the region's average. Also, with capabilities growing at about four times the rate of its domestic internet service, the country is well on its way to becoming the leader in meeting the cloud data storage needs of the gaming industry.
Key HighlightsCloud gaming subscriptions in China outnumber all other users combined, and the country has a history of high mobile gaming uptake and low rates of console ownership. Regardless of age or smartphone brand, consumers in China play games on their smartphones and tablets more than consumers in any other region, and subscription costs are also significantly higher.
However, the Chinese government's gaming regulation to control the addictive nature of online games and protect the younger generation from the addictive nature of the games may be a restraint for the overall market. China began enforcing new regulations in August last year to restrict minors' time playing internet games. Young players are now only permitted to play during public holidays, Friday through Sunday, from 8 p.m. to 9 p.m. The National Press and Publication Administration asserts that the goal of the video game ban is to safeguard children's physical and mental well-being. For a while, the Chinese government has been worried about eye issues among young gamers.
Rapid Advances in Technological Developments to drive the MarketEmerging businesses such as big data, cloud computing, internet data centers, and the Internet of Things registered a rapid revenue increase. The Chinese telecom market is growing quickly, which will be good for the Chinese cloud gaming market.
Competitive LandscapeThe market is concentrated, with a few legacy vendors like Tencent, 37 Interactive Entertainment, and NetEase dominating it. The publishers and channels, then, have much more control over the gaming scenario.
In September 2022, the world's largest video game firm by revenue, Tencent Holdings, partnered with Swiss-American computer equipment maker Logitech to produce a portable game console that may compete with Valve's Steam Deck. Logitech G Cloud is a portable gaming device made by Tencent Games and Logitech G. It will be able to stream games from the cloud from Microsoft's Xbox Game Pass Ultimate and Nvidia Corp.'s Nvidia GeForce NOW.
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