iResearch: 2011Q2 China’s customer online game market size arrived 9.48 billion Yuan

July 27, 2011

According to the statistics from iResearch recently, China’s customer online game market size arrived 9.48 billion Yuan in 2011Q2, with a sequential growth rate of 3.0% and a year-on-year increase being 23.9%. The enterprise game market has exceeded customer game market, reaching 11.42 billion Yuan. With game giants’ (like Tencent) further expanding their market share, small and medium game companies will focus more on the enterprise game market.

iResearch believes the slowdown of customer game market’s growth has not affected enterprise game market, which is still growing very quickly. Small and medium game companies are retreating from the competitive customer game market and entering the enterprise game market, hoping to start a new round of growth.

During the process of pattern transformation, most game companies are cutting expenses on Internet advertising and paying more attention to all kinds of marketing methods. In 2011Q2, China’s online game advertising market size was $173 million, with a sequential decrease of 7.2% and a year-on-year growth rate being 16.4%. iResearch said in the report that, China’s user conversion and retention rate of online advertising is falling and online advertising costs are increasing.

As online game market’s growth slowing down, mobile Internet has become a very important platform for new games. However, the low threshold of web games, social games and mobile games will intensify competition.

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