Market analyst Niko Partners has lowered its revenue forecasts for both the PC and mobile games industries in China following a block on new releases in the country.
China’s block on game approvals began earlier this year following a government restructuring and could continue into early 2019. Industry behemoth Tencent has already begun reeling in games marketing budgets as it attempts to weather the ongoing storm.
Market forecasts for this year’s revenue are below expectations set in April for both PC and mobile. PC is down 3.8 per cent to $15.2 billion, while mobile has dropped 2.4 per cent to $15.6 billion.
Despite that, Chinese PC and mobile gaming revenue still increased 11 per cent between 2017 and 2018.
Niko Partners’ half-year update on the Chinese market claims that Chinese gamers are “avidly consuming” games that have previously passed the country’s strict approval process.
The analyst expects a recovery to begin in late 2019, with a full revenue rebound by 2020.
It predicts PC gaming revenue will reach $15.4 billion in 2022, with mobile hitting $24.1 billion. In the meantime, Chinese developers are advised to look internationally with game releases going forwards.
The global games market will come under the microscope at Pocket Gamer Connects London on January 21st to 22nd as part of the East Meets West track.