China has been named the top spender on mobile games with a total revenue of $7.1 billion, surpassing both the United States and Japan, according to the latest reports by intelligence companies Newzoo and TalkingData.
The country’s mobile gaming market saw a 57 percent year-on-year rise in spending, and experts from the respective research firms believe the figure will continue to rise. Chinese gamers are predicted to spend $10 billion on mobile games this year – and the figure will rocket to $13.9 billion in the next three years.
“As the mobile games market began to consolidate to a few large game companies, resources such as channels, talents, and IP were hoarded by them,” the report said. It further revealed how these game giants are heavily investing in their resources, development site, and marketing to extend the value of their games.
“The big companies raise the cost standard of R&D and user acquisition in the industry, making it difficult for small and medium companies to survive,” the report said.
China had 32,000 content producers during Q4 2015, up 5.6 percent from Q3 2015, but notably down by nearly 25 percent between Q4 2013 and Q1 2014. Experts say the trend does not imply that China cannot support publishers and developers; rather, it shows that tech giants such as Tencent and Netease are “acquiring more of the smaller and medium-sized businesses while also driving up the costs to compete.”
You may also interested in: China Mobile Game Data Report Q1, 2016
