22% of 2021 TOP100 Games
China Continues Domestic Regulations... Expands Targeting Korean Market
[Asia Economy Reporter Seungjin Lee] As Chinese game companies face intensified domestic game regulations, they are turning their attention to the Korean mobile game market. Unlike in the past, the genres have diversified, and with flashy graphics and solid storylines, they have become a formidable presence. As a result, Chinese games occupy four spots within the top 10 highest-grossing games, shrinking the position of domestic games.
4 out of Top 10 Highest-Grossing Games are 'Chinese'
According to mobile big data platform Mobile Index on the 22nd, ‘Goddess of Victory: Nikke’ (hereafter Nikke) ranked 3rd in Google Play revenue. Nikke, serviced by Level Infinite under Tencent, China’s largest internet company, succeeded in hitting number one shortly after its release, surpassing the ‘Lineage’ series.
Currently, besides Nikke, ‘Genshin Impact’ ranks 6th, ‘T3 Arena’ 7th, and ‘Heroes Tales’ 9th in Google Play revenue, all developed by Chinese developers or distributed by Chinese game companies. According to market research firm Sensor Tower’s 2021 survey of the Korean mobile game market, Chinese games accounted for 22.3% of the top 100 highest-grossing games. This year, that figure is expected to be exceeded.
In the past, Chinese games failed to gain much popularity in the domestic market due to low-quality gameplay. They were often simple puzzle games or blatantly designed to induce spending, leading to their neglect. However, recently, with improved graphics and solid storylines, they have gained popularity among domestic users as well.
Additionally, domestic game companies have recently released numerous new ‘Lineage-like’ titles that imitate the features and systems of the so-called Lineage series, failing to create differentiation.
The popularity of Chinese games was also confirmed at Korea’s largest international game exhibition, ‘G-Star 2022,’ which recently concluded. Level Infinite, servicing Nikke, and HoYoverse, servicing Genshin Impact, had booths at G-Star. HoYoverse collaborated with Samsung Electronics to showcase various goods such as the ‘Galaxy Genshin Impact Edition Limited Edition,’ some of which sold out within 25 minutes. These booths saw a continuous stream of visitors throughout the event.
On the 18th, visitors are lining up at the Level Infinite booth at Busan BEXCO's 'G-STAR 2022' to participate in the 'Goddess of Victory: Nikke' event.
"Games are Opium"... China’s Closed Market
While Chinese game companies are expanding their influence domestically, Korean game companies’ entry into China has halted. This is due to the Chinese authorities implementing strict game regulations since last year, including limiting online gaming time for minors under 18. At the time of regulation, Chinese authorities even described games as ‘spiritual opium.’
In Tencent’s case, it received a game license (game service approval) from Chinese authorities for the first time since May last year, only this month. As even domestic game companies find it nearly impossible to obtain licenses, Korean game companies have effectively given up on entering the Chinese market. The last time Chinese authorities issued game licenses to overseas games, including those from Korea, was June 28, 2021.
As China’s game regulations continue, Chinese game companies’ push into Korea is expected to intensify. This is because Chinese users are increasingly turning away from their domestic market to enjoy games on Korean servers. Furthermore, as domestic game companies are recently focusing more on developing PC and console platform games, Chinese games are expected to continue growing in the Korean mobile game market.
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