Analysts believe China’s online game market concentration rate will drop

While the leading companies in China‘s online game industry remain strong, analysts believe the market’s concentration rate will drop as new developers push for their own products. For more details, check out the full article.

The home of countless online games, China, is expected to see more diversity in the online gaming market in 2008. According to the TMT field adviser Analysys International, more independent companies are going to vie for market share as the industry’s size grows to CNY 15.816 billion (around US$ 1.17 billion) in 2008.

Shanda Interactive Entertainment Limited, NetEase, and Giant Interactive Group Inc. have been dominating the scene by taking 62.97% of the market in 2006, but that number is predicted to end at 57.65% when 2007 closes.

By 2008, with the market still growing, investors are expected to venture into online gaming and cause concentration rate to drop. Analysys International foresees more developers entering the industry after independent development companies profited from a product or two.