China Overtaking US Gaming Market

for several years, the United States as the dominant force in the gaming industry, truly lucrative market making billions of dollars in profits each year. In 2009, the overall video game revenue reached $ 77 billion, rivaling that of Hollywood with global revenues reaching $ 85 billion over the same period. However, with current trends in the gaming market, the U.S. will eventually leave his hold first place in China by the year 2014, according to new research conducted by industry expert Digi-Capital.

a major growth area in the gaming market has shifted from the console or personal computer based on the opportunities and strongly moving towards online and mobile platforms. This is attributed to the explosive popularity of smartphones and other mobile devices. This includes internet ready devices such as tablets that users find more convenient to use than traditional consoles. China, which is the gaming market is focused on the Internet, is now on track to dominate the world market

The rise of social and mobile games

Report from Digi-capital gaming console market is predicted to stagnate growth and revenue in the coming years and will eventually be replaced with online games and social mreže.Popularnosti online social networking is huge. Video game developers such as Zynga making billions in revenue from ads and integrated micro-currency system which is very effective in making more people playing more games for filling very small quantities of game and other accessories.

Mobile and online games is expected to grow at 18% CAGR, earning revenues of up to $ 44 billion or 50% of the total $ 87 billion that the video games market is expected to occur. Online and mobile game development company in the U.S. and Japan are the acquisition of additional investment in the further this growth, a sharp contrast to stagnant growth in gaming consoles publishers who require a million units in sales just to break even.

china gearing up to Be Top gaming market

Chinese companies are still looking for two types of investments. One of them is investing in companies that will be used as a business platform, so that they can use their power and reach of domestic and international growth. Another tip is to invest in foreign technology and intellectual property rights which in turn will influence to dominate the huge Chinese domestic market. This trend is what is happening in the gaming market.

Chinese game market is currently at 12% of the world as it is today, but is expected to be at 50% of total revenues for the year 2014 with its current growth rate. It would be inconsistent with the U.S. share in the same period is expected to decrease from 26% to 22%. China is now launching a large inflow of capital investment, with companies such as Tencent moves outside the local area and grabbing hold of a major U.S. video game market with the recent acquisition of Riot Games.

Tencent already peaking at 20 million online users at the same time - a higher figure than the population of many countries - and expects these figures to grow in future periods. Tencent addition, other Chinese companies such as ChanYou.com, Giant, NetEase and Shanda are experiencing billion dollar growth - all of which are rapidly expanding and growing outside their home markets