China's market can be tough for domestic and foreign companies, but the country remains the number one market globally for games revenue and the number of gamers, and cannot be ignored.
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PC games revenue generated overseas by Chinese owned companies rose by 22% in 2022 and is expected to grow by a 13.8% CAGR through 2027 - which is higher than the domestic growth rate by a significant margin. Lisa Hanson, CEO and founder of Niko Partners included her own observations of the region's dominance: "Chinese game companies are growing internationally, and they are making bold investments at higher rates than ever. The gaming population is expected to expand to around 730 million participants by then. The company's analysts posit that China persists as the largest global games market, with upward trends pushing growth to a predicted $57 billion of revenue by the year 2027. Domestic figures show that 66% of China's gaming revenue comes from mobile, 31% from PC and 3% from console titles. Native games companies (including Tencent and NetEase) accounted for 47% of worldwide mobile games revenue, along with a 39% revenue share of international PC games sales. A set of reports published by Niko Partners has calculated that the games market in China generated $45.5 billion in revenue last year.
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