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Chinese console and TV-based game market projected to reach $736m in 2018

Grey market software to account for nearly two-thirds of market value

The console and TV-based game market in China shows continued promise since the government overturned its console ban in 2014, but the grey market still plays a considerable role.

Although PC and mobile dominate the region, the console and TV-based game market is expected to reach $736 million value this year, according to Niko Partners.

Data from the market intelligence firm estimated the entire console and TV-based games market to increase by 14.6 per cent year-on-year as rising software sales offset a slight hardware decline.

In terms of software, Niko Partners estimate the annual revenue from Chinese console and TV-based games to increase by 32 per cent year-on-year, reaching $471 million; this is projected to reach $897 million by 2022.

Hardware revenue is projected to suffer a seven per cent decline year-on-year, down to $265 million, including legitimate and grey market unit sales.

Grey market hardware is expected to generate $92 million in 2018, down 16 per cent year-on-year with an increase in grey market imports of the Nintendo Switch likely to offset a decline in grey market PlayStation 4 and Xbox One units.

Meanwhile, grey market software is on the rise, and is expected to increase by 25.4 per cent year-on-year, with sales reaching $268 million in 2018.

By 2022, Niko Partners expects the number of console and TV-based gamers to have essentially doubled to 24.37 million.

"Growth is driven in part by China's 2014 reversal of the console ban, lower console prices, strong international game brands, the introduction of online gaming and distribution on consoles rendering piracy virtually non-existent on current gen consoles, and localization of international games for China," said Niko Partners.

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Latest comments (1)

I think going forward, CD Projekt should create their IPs from scratch and not from licensed works.
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