Market Trends of China Cloud Gaming Technology Industry
This section covers the major market trends shaping the China Cloud Gaming Technology Market according to our research experts:
Growth of Smartphones to Drive the Market Demand
Cloud gaming subscriptions in China outnumber all other users combined, and the country has a history of high mobile gaming uptake and low rates of console ownership. Regardless of age or smartphone brand, consumers in China play games on their smartphones and tablets more than consumers in any other region, and subscription costs are also significantly higher.
- Due to the rising popularity of smartphones over the past few decades, China's contemporary mobile game market has undergone a tremendous transformation. Most young people in China use cell phones to browse the internet or play games, which increases the competitiveness of mobile games. Numerous Chinese businesses sell smartphones that are packed with gaming-specific functionality.
- For instance, in December this year, the Red Magic 8 Pro is scheduled to debut as the first gaming smartphone to use Qualcomm's cutting-edge Snapdragon 8 Gen 2 SoC. Pre-orders for this gaming smartphone have just started to be accepted in China. The gadget will include a 6.8-inch OLED screen with Full HD+ resolution and a fast refresh rate. Further, being a gaming smartphone, it will also be equipped with a powerful cooling system to control temperatures when performing demanding tasks like gaming. A heat-dissipating turbofan will also be a part of this cooling system. A 16-megapixel selfie camera will be located in the front, and a 50-megapixel triple camera arrangement is anticipated for the back.
- Top domestic smartphone manufacturers like Xiaomi, Vivo, and Huawei are manufacturing gaming-specific smartphones because they see them as a distinctive approach to appealing to their younger consumer base. Lenovo and Asus, two companies that make laptops, are getting into the gaming smartphone market. Asus has the ROG Phone series, and Lenovo's best gaming phone is the Legion Phone Duel 2, which came out in April last year.
However, the Chinese government's gaming regulation to control the addictive nature of online games and protect the younger generation from the addictive nature of the games may be a restraint for the overall market. China began enforcing new regulations in August last year to restrict minors' time playing internet games. Young players are now only permitted to play during public holidays, Friday through Sunday, from 8 p.m. to 9 p.m. The National Press and Publication Administration asserts that the goal of the video game ban is to safeguard children's physical and mental well-being. For a while, the Chinese government has been worried about eye issues among young gamers.
Rapid Advances in Technological Developments to drive the Market
- The most important high-tech advances are 5G mobile communications technology, improvements to smartphones, China's digital currency, and cloud infrastructure services in China, which are driving the cloud gaming market in the region.
- According to the 14th Five-Year Plan, China wants to raise the value added by digital economy companies to its GDP by 10% by 2025. (14th FYP). According to the plan, the government is driving Chinese industries' digital transformations to unprecedented heights. To enhance the governance structure of the digital economy, Beijing also intends to make digital public services more inclusive.
- To do this, the Chinese government is putting more money into research and development for 6G and encouraging innovation in key areas like integrated circuits and artificial intelligence (AI).
- China had 2.22 million 5G base stations nationwide as of September this year. From the end of the last year, the number indicates a net increase of 795,000 5G base stations. According to data from China's Ministry of Industry and Information Technology, the total operating revenue of the country's telecom sector increased by 8.2% between January and September of last year to approximately CNY 1.2 trillion (USD 167.37 billion).
Emerging businesses such as big data, cloud computing, internet data centers, and the Internet of Things registered a rapid revenue increase. The Chinese telecom market is growing quickly, which will be good for the Chinese cloud gaming market.
