China’s game industry surged up 68% in 2006

According to a report by market intelligence firm Niko Partners, China‘s video game industry has surged an impressive two-thirds last year. The fifth annual report stated that the local industry has jumped a stunning 68% in 2006, in cohesion with an even larger 74% rise (since 2005) in the MMO segment of the industry.

Online gaming profits has risen to approximately US$ 995 million, which Niko Partners has attributed to the growing popularity of the free-to-play MMO business model.

According to the analysts, players have been spending more on free-to-play Asian MMO games than on Western subscription-based online games.

Also impressive is the fact that in a country fraught with piracy, legitimate offline PC title sales also rose by 28%. Analysts say that this is due to the fact that the most popular of gaming platforms there is the PC, allowing the public full use of over 20 million of them over 225,000 computer cafes nationwide.

Players who cannot afford to buy their own computer drop by at a local cafe nearest them and play networked LAN games or popular MMO titles – in a daily basis. Lisa Cosmas Hanson, managing partner of Niko Partners, also added, “The intertwined nature of China’s Internet cafes, social gaming culture, and few entertainment alternatives at a low price point, will continue to be the basis for strong growth through 2011.”

Even with the government restriction on consoles, some hardcore gamers have been able to grab their own console unit for gaming at home. According to Niko Partners, the console industry there (though mostly through piracy) has also seen an improvement last year.

The report, entitled “The 2007 Chinese Video Game Market Annual Review & Forecast Report,” collected and reviewed 75,000 points of data from 10 major cities in China, and forecasts market trends for several segments of the gaming market: PC online, PC offline, console, handheld games and the hardware market.

According to a report by market intelligence firm Niko Partners, China‘s video game industry has surged an impressive two-thirds last year. The fifth annual report stated that the local industry has jumped a stunning 68% in 2006, in cohesion with an even larger 74% rise (since 2005) in the MMO segment of the industry.

Online gaming profits has risen to approximately US$ 995 million, which Niko Partners has attributed to the growing popularity of the free-to-play MMO business model.

According to the analysts, players have been spending more on free-to-play Asian MMO games than on Western subscription-based online games.

Also impressive is the fact that in a country fraught with piracy, legitimate offline PC title sales also rose by 28%. Analysts say that this is due to the fact that the most popular of gaming platforms there is the PC, allowing the public full use of over 20 million of them over 225,000 computer cafes nationwide.

Players who cannot afford to buy their own computer drop by at a local cafe nearest them and play networked LAN games or popular MMO titles – in a daily basis. Lisa Cosmas Hanson, managing partner of Niko Partners, also added, “The intertwined nature of China’s Internet cafes, social gaming culture, and few entertainment alternatives at a low price point, will continue to be the basis for strong growth through 2011.”

Even with the government restriction on consoles, some hardcore gamers have been able to grab their own console unit for gaming at home. According to Niko Partners, the console industry there (though mostly through piracy) has also seen an improvement last year.

The report, entitled “The 2007 Chinese Video Game Market Annual Review & Forecast Report,” collected and reviewed 75,000 points of data from 10 major cities in China, and forecasts market trends for several segments of the gaming market: PC online, PC offline, console, handheld games and the hardware market.