2019 Game Industry Semi-Annual Report: market rebounds strongly, total revenue of $116.3 billion, user growth rate highest in three years

Today, Gamma Data released the 2019 Semi-Annual Report on China's Game Industry. The report summarizes the overall development of China's game industry in the first half of 2019, and provides a detailed explanation of the segmented market and industry chain. Not only that, it also published a large amount of first-hand user research data for the first time for the industry's reference.
Gamma Data's summary and analysis on the half-year of China's game industry in 2019 concludes that the game industry has rebounded strongly and the industry is developing healthily since it has entered strict management for more than a year. The degree of refinement, user growth, and overseas market development have achieved convincing results.
The following is a summary of Gamma Data's 2019 Semi-Annual Report on China's Game Industry, which is intended for internal reference only and also includes more comprehensive market analysis, a survey of user behavior in China's game market, and other detailed information.
H1 2019 revenue: $116.31 billion, growth rate 10.81 TP3T

The 2019 Semi-Annual Report on China's Game Industry released by Gamma Data (micro-signal: Game Industry Report) shows that in the first half of 2019, the actual sales revenue of China's game market was 116.31 billion yuan.

Source: Gamma Data (CNG)
China's mobile game market actual sales revenue exceeded 70 billion yuan, an increase of 18.8% compared with last year. higher than the growth rate of the same period last year. First, the performance of old products is stable, such as the "King's Honor", "Fantasy Westward Journey" and other products, such as the flow of water is still stable; second, the new tour explosion to promote, such as the "Perfect World", "Peace Elite" game in the first month of the measured flow of water are up to about 1 billion yuan.

Source: Gamma Data (CNG)
From January to June 2019, the actual sales revenue of China's client-side game market showed growth, which was limited but better than last year's negative growth.

Source: Gamma Data (CNG)
From January to June 2019, the actual sales revenue of China's webpage game market further declined. The shift of users brought about by the migration of "Legend" type of volume-buying games to mobile platforms, as well as the delay in realizing new breakthroughs in the R&D and operation of webpage game products, were the main reasons for the continued decline in revenue of the webpage game market.

Source: Gamma Data (CNG)
From January to June 2019, the actual sales revenue of China's single-player game market continued to rise to reach 280 million yuan, a year-on-year increase of 250.0%. This was mainly benefited from the continuous maturation of single-player game distribution platforms, such as the cumulative sales of single-player games on the WeGame platform, which have already reached the ten million level; at the same time, the continuous launch of some new single-player products has also pushed up the growth of sales revenue.

Source: Gamma Data (CNG)
H1 2019 users: 554 million, highest growth rate in three years

From January to June 2019, the user scale of China's game market was about 554 million people, up 5.1% year-on-year, a new high in the past three years.

Source: Gamma Data (CNG)
The climb in user increase in the first half of 2019 was due to a number of reasons in addition to the products gaining popularity among players. For example, the continued growth in the size of Internet users has increased the user base and expanded the source of game users; the demand for realizing other Internet businesses such as short videos has prompted more non-game users to be converted into game users.
According to the Gamma Data survey, 61.8% of game users said that they would often play games, and games have become part of Internet users' lives. In addition, the ratio of male and female game users is close, and the female game market does not lack a user base.

Source: Gamma Data (CNG).

Source: Gamma Data (CNG)
The 2019 Semi-Annual Report on China's Game Industry released by Gamma Data (micro-signal: Game Industry Report) focuses on analyzing the user behavior of the Post-00s. A large amount of user research data showed that MOBA and shooting games ranked among the top two game types favored by the Post 00s, while RPGs, which have a high number of games and market share in China, were not favored by them. In addition, the characteristics of products favored by the Post-00s are distinctive.
In addition to gaming, post-00 players spend more time listening to music, with reading and using social software coming in second.

Note: Post-00 game users were selected as a sample of game users under 18 years old.
Data source: Gamma Data (CNG), statistics as of June 2019
Overseas market revenue in H1 2019: $5.73 billion, growth rate of 23.81 TP3T

Gamma data report shows that from January to June 2019, China's self-developed online game overseas market actual sales revenue was 5.73 billion U.S. dollars, an increase of 23.8% year-on-year, compared with the same period last year, the growth rate has been broken.

Source: Gamma Data (CNG)
This change is influenced by a number of factors. Firstly, the Chinese game market is developing rapidly and the level of game research and development is improving, thus enhancing the competitive advantage of China's self-developed products overseas. Second, as competition in the domestic market intensifies, more companies are looking for opportunities in overseas markets. Finally, the potential of overseas markets has been slowly unfolding in recent years, attracting Chinese game companies of all sizes to set up overseas operations.
At present, China's self-developed mobile games in the world's major markets have a high market share, at present, Europe and the United States, Japan and South Korea is still the main market, the Middle East, Southeast Asia, Latin America and other regions of the developing countries, but also has a certain development advantages, easy for enterprises to develop the market based on the development of a larger space for development. The characteristics of many markets, game user attributes will become an important tool for domestic enterprises to go overseas.

Source: Gamma Data (CNG)
It is worth noting that the traditionally developed game markets, the United States, Japan and South Korea, Western Europe, ranked in the top three of China's overseas market, and users in these regions have higher requirements for game quality, which side by side proves that the quality of China's game products as a whole has improved.
E-sports: H1 market revenue of 51.32 billion yuan, an increase of 22.81 TP3T, mobile e-sports accounted for more than 60% of the

From January to June 2019, the actual sales revenue of China's eSports game market amounted to 51.32 billion yuan, with a growth rate of 22.81 TP3T, higher than the growth rate of China's game market in the same period. Meanwhile, the revenue growth rate of the mobile eSports game market is ahead of that of client-side eSports games, and its share has exceeded 60%.

Source: Gamma Data (CNG)

Source: Gamma Data (CNG)
In 2019, according to Gamma Data's estimation, in the revenue composition of China's eSports industry, game revenue accounted for 89.2%, and the revenue of other segments accounted for more than 10%.For the eSports industry, the further enrichment of the revenue structure is conducive to the improvement of industrial chain stability, and the enhancement of the blood-creation ability of various segments of the industry will continue to grow the overall industry scale. However, the tournament income and club income of e-sports industry still occupy a relatively low proportion, which depends on further exploring the commercialization potential in the future.

Source: Gamma Data (CNG)
China's game live streaming market maintained steady growth and sales revenue continued to rise.From January to June 2019, the actual sales revenue of China's game live streaming market amounted to 4.77 billion yuan. Affected by the closure of live broadcasting platforms such as Panda TV, All TV and Lion Roar Live, the revenue growth rate of China's game live broadcasting market declined to some extent, the pattern of the live broadcasting industry gradually stabilized, and the head live broadcasting platforms took the opportunity to accelerate their own commercialization process while further capturing the market, prompting the actual sales revenues of the game live broadcasting market to remain at a high growth rate.

Source: Gamma Data (CNG)
Game talent field: the national average monthly salary rose 6.9%, e-sports practitioners in Beijing the most

According to Gamma Data's (CNG) statistical analysis of the salary of game industry employees, compared with September 2018, the average monthly salary of game industry employees in June 2019 has increased, with an increase of about 6.9%. Among them, the proportion of the salary range of 6001-8000 yuan and more than 20,000 yuan has been increased to some extent, while the proportion of the other salary ranges has decreased.
Gamma Data also released some data on e-sports industry practitioners in its 2019 Semi-Annual Report on China's Game Industry. The regional distribution shows that e-sports practitioners are more concentrated in the three regions of Beijing, Shanghai and Guangdong, which together account for more than 60%. At this stage, the demand for talents in China's eSports industry mainly focuses on eSports service positions, with the demand for eSports service positions accounting for 67.5%. The increasing popularity and influence of domestic e-sports events is one of the major reasons for this situation.

Source: Gamma Data (CNG)

Source: Gamma Data (CNG)
Overseas gaming companies are able to offer higher salaries for esports game development positions than other positions, with an average salary of over $150,000 per year. This is followed by esports event services positions, which can earn more than $110,000 per year.
At this stage, the demand for talents in the overseas eSports industry is mainly concentrated in the eSports game research and development positions, with the demand for eSports game research and development positions accounting for 42.9%. Next is the demand for e-sports event service positions, which accounted for 37.5%.

Source: Gamma Data (CNG)

Source: Gamma Data (CNG)
For the secondary yuan game, the game's screen design and the construction of game characters are key. From the distribution of various types of talent demand in the secondary yuan game market according to Gamma Data (CNG), game enterprises have a higher demand for game design talents. From the distribution of the demand for secondary yuan talents in different parts of China, Shanghai has the greatest demand for secondary yuan talents, accounting for 32.6%, followed by Beijing, accounting for 27.5%.

Source: Gamma Data (CNG)

Trend Forecast: Management is beginning to bear fruit, overseas growth will accelerate, new game formats are worth paying attention to

Gamma Data analyzed that the government's management efforts are beginning to bear fruit! With the more efficient and effective approval of the version number, more companies committed to innovation, boutique, can be in the market stage to show off, coupled with the further expansion of the overseas market, China's market in the second half of the year will be more worthy of expectation.
The innovation brought by the technology is also worth looking forward to. In the next five years, 5G users may grow to 500 million, in which cloud gaming and VR gaming will become the focus of attention.
Survey data shows that after understanding the characteristics and advantages of cloud games, nearly 60% of core game users have shown greater interest in cloud games, and more than 15% of core game users have also experienced VR games, which indicates that core game users have higher acceptance and expectation of emerging game forms. With the continuous iteration of underlying technologies such as 5G, emerging game types such as cloud games and VR games are expected to gradually solve the technical, cost, popularization and other challenges they face at this stage, which will in turn ignite the market and ultimately become an important growth engine for the next phase of China's game market.

Source: Gamma Data (CNG)
Another angle of interest is the tapping of new user groups.
The survey data shows that the core user penetration rate varies greatly among different groups. This shows that game products have tapped more into the demand of men aged 18-35, while the demand of middle-aged, elderly, women and other user groups is still insufficiently tapped. As gaming companies continue to pay more attention to segmentation, demand mining for specific user groups is expected to accelerate and become an important driving force for the growth of China's gaming market.

Source: Gamma Data (CNG)
Expansion in overseas markets may speed up. At present, the willingness and progress of Chinese games to enter overseas markets are accelerating. It is worth mentioning that, in addition to the traditional overseas-type enterprises, most other game enterprises need to face a teething period, and the proportion of overseas revenue was low in the early stage, and with the continuous understanding of the market, these enterprises are expected to realize the expansion of overseas revenue with the help of the accumulation of the current stage in the future, and ultimately realize the growth of revenue. According to Gamma Data, listed game enterprises that have already made certain achievements in the overseas market, their overseas revenue share ushered in significant growth in 2018.

Source: Gamma Data (CNG)

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