According to an IDC report, China's online gaming market is expected to
see an annual compound growth rate of 34.7% until 2009. Here are some gaming and telecom statistics, and a new virtual business the could spur the Chinese online auction market:
Highlights of the IDC research note:
- Government figures show that China's online gaming market generated revenue of $298.7 million in 2004, up 34.7% over the previous year.
- Telecom operators, who provide Internet access services to game players, booked revenue of $1.8 billion from the online gaming business.
Among the top 10 most popular online games last year:
- Shanda Interactive (ticker: SNDA) claimed the #1 and #3 spots.
- Netease.com (ticker: NTES) saw three of its games in the top 10.
- Sina.com (ticker: SINA) also placed in the top 10.
New gaming-related business:
- Cyber-products, goods only existing in online games such as armor and weapons, are becoming a new source of revenue.
- Approximately 20% of game players spent an average of $85 per capita last year buying cyber-products.
Challenges:
- IDC warned that there were no exciting games
launched last year. - Game operators and developers need to find new sources of growth.
