China’s Video Game Market Reaches $50 Billion Milestone

According to new reports by Niko partners, China’s video game market is expected to cross the $50 billion mark in 2025, with both domestic and global titles fueling momentum.

One of the standout stories in 2024 was the success of Black Myth: Wukong, which sold more than 25 million units globally. This milestone not only placed it among the biggest AAA launches but also highlighted the potential of Chinese developers in producing globally competitive titles.

Alongside PC and console hits, mobile gaming has remained the backbone of the industry, with Tencent’s Dungeon & Fighter Mobile, Century Games’ Whiteout Survival, and Papergames’ Love & Deepspace emerging as top performers.

Although console gaming is still a relatively niche market, the Nintendo Switch has been a surprising success in China, and the launch of the Switch 2 through grey market imports has sparked fresh enthusiasm.

Esports has also entered a new growth phase, marked by the revival of Overwatch competitions, the rollout of Tencent’s Delta Force initiatives, and the rise of Valorant Mobile with its budding competitive scene.

Government backing remains a crucial pillar for the industry. In the first half of 2025 alone, more than 30 new policies were introduced to encourage industry growth. The National Press and Publication Administration (NPPA) approved 1,119 titles in just eight months, up 21% compared to the previous year.

Despite this, challenges persist in the form of regulatory uncertainties, higher operational costs, and ongoing trade tensions between the US and China, including restrictions on GPU exports.

Niko Partners' five-year forecast suggests the market could reach $54.8 billion by 2029, supported by 753 million gamers. Interestingly, while growth in player numbers will slow, revenue per user is expected to rise, climbing from $68 in 2024 to $73 by 2029.

Shifting player behavior is also shaping the industry’s direction. Niko’s 2025 China Gamer Behavior & Market Insights Report reveals that 85% of gamers are aware of generative AI, with nearly 40% expressing interest in its gaming applications. Developers are already experimenting — NetEase, for instance, has integrated AI-driven NPCs into Justice Online Mobile, letting players interact with characters in new ways.

Another rising trend is the popularity of “Mini Games,” lightweight titles often played instantly through apps like WeChat and Douyin. Over 84% of Chinese gamers have tried them, with women more likely to play daily. These mini games now account for almost 10% of total gaming spend, showing just how important casual formats have become.

Short video platforms like Douyin and Kuaishou are also shaping how gamers discover new titles, surpassing traditional store recommendations as the top source of information. Meanwhile, esports and livestreaming remain strong pillars, with MOBA and shooter titles—such as Honor of Kings, League of Legends, Delta Force, and Valorant—dominating streaming charts.