Total consumer spend within the Chinese PC online gaming market was RMB 78.3 billion ($11.3 billion) in 2019, representing a year-over-year decrease of 5.4%. Mobile offerings are leveraging PC IP to further out-perform the PC segment, and the general decline of the MMOG and MOG segments is exacerbated by new government policies. The boundary between Game Time and Subscription is increasingly blurred, whilst the premium monetisation model remains niche.
- NetEase was the only major publisher to see a sharp uptick in 2019, with an expanded market share of 18%.
- Limited ISBNs suggest a continuous decline within the PC games segment – core titles like MMORPGs, shooters and battle royales have an extended approval process, but represent the main source of revenue for publishers.
- Legacy games are now also required to introduce protection systems to limit gameplay time for young people – most games from Tencent and NetEase have added face recognition and ID verification systems to combat youth addiction to games. This may accelerate the shift in audience interest towards other entertainment forms: namely short-videos and live streaming.
- Due to the stagnant state of the PC segment, and the highly competitive landscape, major publishers such as Tencent and NetEase are seeking opportunities in other internet-related industries.
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