COVID-19 lockdowns expected to help global gaming sales rise 20% to nearly $180 billion in 2020, and experts don’t see growth taking a hit in 2021 after release of Playstation 5 and Xbox Series X|S.
In Q1 2021 Tencent has invested some $27 billion in gaming companies which is more than all of 2020.
ByteDance it is acquiring Shanghai-based gaming studio Moonton Technology, as it seeks to further expand into the video games business and explore the global game market.
ByteDance is now in direct competition with TenCent. With more competition, the Chinese market will have more options.
In 2020 Chinese-developed video games earned $15.45 billion in sales from overseas markets, up by 33.25 percent on a annual basis.
In addition to ByteDance and Tencent, Kuaishou, a Chinese video-sharing mobile app, is also accelerating its investment in gaming. Rakshasa Street: Wargod, a strategy card game distributed by Kuaishou, has amassed more than a million new players on debut last Thursday. The company said it will keep developing “hardcore games” going ahead, with large-scale recruitment in Beijing and Shanghai this year.
China is poised to become a huge media market which suggests entertainment will be a bigger avenue than currently seen. The government is working with construction companies to bring gigabit networking with more fiber installations. 5G mobile can provide very fast speeds as well which is motivating more fiber infrastructure. China hopes to have 100 major cities setup with gigabit speeds by the end of 2023. It will take many years for China to interconnect the entire nation with 5G but work is ongoing.
PC gaming is still a huge chunk of the global gaming sector. Mobile gaming on phones has expanded significantly in recent years. Consoles have grown dramatically.
Feature films are doing very well in China. Box office reports are showing the nation is now becoming the largest theater market in the world. IMAX has now reached 700 cinemas and the recent Godzilla v Kong has did extraordinarily well in the first week.