According to the forecast of Niko Partners, the revenue of the Chinese video game market by the end of 2022 will amount to $45.4 billion. This is 2.5% less than a year earlier. For almost a quarter of a century, there has been no drop in indicators.
Analysts explain the current situation by a whole complex of reasons that overlapped with each other in time. Apart from each other, they might not have led to such consequences. However, all together had a strong impact on the market.
We are talking about the following negative factors:
The ambiguous situation in the Chinese economy (for example, the construction sector is on the verge of crisis, stagnation or recession is observed in other sectors);
▫️zero tolerance policy for COVID (unnecessarily strict anti-coronavirus restrictions affecting the functioning of entire regions);
▫️children can no longer play fully (they can’t spend more than three hours a week playing games);
▫️a small number of licenses issued (without a license in the country, you cannot release the game, less than a hundred permits are issued for the whole of China per month).
As a result, the number of players in the country will even fall by the end of this year: from 706 million to 701.8 million.