Seeing the Chinese Game Market Through NetEase

GUANGZHOU, China, April 26, 2016 /CNW/ -- Global game market is worth $91.5 billion in 2015, with an increase of 9.4% year-on-year. China accounts for the biggest part with $6.5 billion, which is slightly higher than Japan and United State. (Global Game Market 2015. Newzoo.)

As an international industry, China shares numerous features with the global game market from market structure to brand preference. Just as Supercell and King that take 45% of the America market, 60% of the Chinese game market is occupied by two major game companies: NetEase and Tencent. The former one is a preeminent game publisher that has developed numerous signature games in China since 2001, while the later one is renowned for its media and distribution platforms, such as QQ and Wechat.

In terms of the game category, the proportion of MMO games in the Chinese game market increased 3.7 times from 11% in 2014 to 38% in 2015. It also enjoys the longest product circle and best profitability. NetEase is at the forefront of the shift, as the company launched its MMORPG game Fantasy Westward journey in March 2015. Since then, the game has dominated the No.1 position of China iOS App Store's Top Grossing chart. While Westward Journey mobile is also a MMO game produced by NetEase, it took the 3rd place of Top Grossing within only one day after launching, and reached the 2nd place for merely 11 days.

Securing the prosperous domestic performance, leading Chinese game companies are stepping into the global market. In fact, Chinese games are increasingly exposed globally no matter in US, Japan, or Korea. NetEase Games established its North America Office at San Francisco in 2015 and the Korea office at Seoul in 2014. The company is continuing to expand and refine its global team. "Along with introducing the great games to China, our office is dedicated to develop better games that fit the global taste," said Zhuo Huang, the general manager of NetEase Games North America Office, "Those games will be developed under the western roles from planning to publishing."

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Diverse user requirements, improving hardware performance, and the innovative technologies such as VR are the key factors underpinning the booming global game market. Besides, the intelligent property of numerous great movies and novels are being well developed due to the pan-entertainment trend. Industrial developments are having a diverse vision by referencing others' strategy, technology and executive plans. It is this open environment that catalyzes the game market by keeping it innovative, hence enlarging its target market's size and business scope. In addition, the internet drives the industry to be more globalized, and players nowadays can easily download the elite games from different channels. It is expected that China, as a major participant of the global game market, will bring more opportunities and enlarge the market for its counterparts around the globe.

About NetEase:

NetEase, Inc. (NASDAQ: NTES) is a leading Internet technology and video game company headquartered in China. With a breadth of experience in content creation and sharing, NetEase develops and operates some of China's most popular online games (including World of Warcraft®,Hearthstone®: Heroes of Warcraft™StarCraft® II, Heroes of the Storm™ and Diablo®III), e-mail services, advertising services, mobile applications and games, and web portals. The company established a US office in 2015, located in Brisbane, CA, with mobile game releases for western audiences including Eternal Arena, Speedy Ninja, The Beautiful Dream, and Lunar Flowers. For more information, please visit:

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SOURCE NetEase, Inc.

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