Chad Catacchio is a contributor writing on a variety of topics in tech. He has held management positions at a number of tech companies in th Chad Catacchio is a contributor writing on a variety of topics in tech. He has held management positions at a number of tech companies in the US and China. Check out his personal blog to connect with him or follow him on Twitter (if you dare).
A report by China market research firm Zero2IPO says that China’s online gaming market revenue will reach $5 billion (33.89 billion RMB) in 2010. Zero2IPO also predicts that China’s online gaming population will increase to 338 million by the end of the year. Just this week, we reported that China had 265 million online gamers at the end of 2009.
The report also goes into seven trends that it sees in the online gaming industry in China:
- Spectacular trend for 3D development of Chinese online games
- The progress of media integration and search for new subscription models will speed up the business innovation for the online gaming market in China
- Ongoing increase but shrinking growth of revenue and users for online games in China
- Growing cases of inter-industry cooperation for China’s online games
- Further expansion of Chinese online games in the global market
- Other related companies will obtain access to the online gaming market by acquisition or strategic investment
- State-owned enterprises will enter the online gaming market mostly by cooperation
The report also lists four areas that investors (Zero2IPO’s clients are generally VCs and other investors) should focus on:
- Medium and small online game developers, or even small development teams
- Integrated or vertical online gaming platform operators
- Platform operators for virtual currency deals
- Industry service providers related to online games
You can read the entire report here.
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