How Chinese Games Are Dominating Global Markets

The landscape of the gaming industry is evolving at a rapid pace, particularly when it comes to the international market. A remarkable testament to this development is the recent success of the game "Black Myth: Wukong," which has surpassed an impressive 22 million copies sold on Steam. Furthermore, "Whiteout Survival" has consistently topped the charts for revenue among mobile games, reflecting a broader trend in the acceleration of Chinese gaming companies making their mark abroad. According to the 2024 October China Game Industry Monthly Report released by Gamma Data, the revenue from Chinese self-developed games in overseas markets reached $1.607 billion in October 2024, marking a significant year-on-year growth of 29.42%. This highlights a growing demand for Chinese games outside their home soil and increasing competitiveness on the global stage.

Interestingly, local gaming firms are finding that overseas distribution can sometimes be more straightforward than navigating the domestic market. Jia Sai, the Vice President of 4399 Overseas, shared insights with the 21st Century Economic Report, indicating that while the Chinese sector is saturated with quality developers vying for attention, the diverse international market offers various niches where companies can thrive without facing cutthroat competition. The landscape is varied, with companies exploring different market segments, focusing on both casual players seeking light entertainment and hardcore gamers craving immersive experiences.

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To succeed in such a differentiated environment, experts believe identifying target demographics is critical. The dual approach of catering to both light and heavy gaming preferences demonstrates a nuanced understanding of global user behavior. As mobile gaming evolves, developers are adjusting their strategies to meet the expectations of players who desire flexibility and instant gratification in their gaming experiences. The industry recognizes that while extensive worlds and elaborate narrative arcs engage enthusiasts, many modern gamers prefer quicker rewards and fun mechanics that fit within their busy lifestyles.

As trends shift towards either heavier or lighter gaming experiences, the adaptability of developers becomes paramount. Notable examples include the AAA title "Black Myth: Wukong," which has set a new standard for production quality. Drawing inspiration from Chinese mythology, the game boasts elaborate graphics and captivating game mechanics, winning accolades such as Best Game and Best Visual Design at the 42nd Golden Joystick Awards, showcasing its global appeal. This game took nearly seven years to develop, showing commitment to quality and cultural representation.

Conversely, lighter games are emerging in response to the preferences of a more casual player base, often influenced by the rise of short-form video content. Players now log in more frequently but spend less time per session, necessitating a shift in how games are designed. He Jiangyuan, producer of "Sword and Expedition: Start," explained that to accommodate this trend, the game implemented strategies to eliminate time-sensitive activities and reduce high-demand gameplay mechanics, while retaining engaging feedback that provides players with satisfaction and immediate rewards.

The shift towards lighter games is also evident in the growing sector of mini-games, with "Mushroom Brave Legend" standing out as a representative success. Launched last November in the Chinese markets before expanding to regions like South Korea and Japan, it consistently ranks in the top ten for Best-Selling iOS games, having attracted a diverse pool of players, even those typically uninterested in gaming. In the first half of 2024, the game generated $378 million in revenue, demonstrating the power of accessible, lightweight design.

The trends for mini-games can be summarized by three keywords: light, enjoyable, and fast. "Light" refers to the simplified design and experience for players, while "enjoyable" emphasizes immediate feedback that rewards players early on, ensuring they remain engaged. Lastly, "fast" reflects the necessity for games to quickly convey their core enjoyment—something exemplified by "Mushroom Brave Legend," where opening loot boxes is as simple as a click, streamlining the traditional complexity of treasure acquisition. This type of design philosophy is increasingly prevalent as developers seek to align with the changing landscape of player preferences.

However, the expansion of Chinese games into foreign markets isn't as straightforward as it might seem. While numerous game companies are attempting to make their move, many falter along the way due to the diverse cultural landscapes and expectations across regions. The essence of gaming revolves around content, and local acceptance of that content can vary dramatically based on cultural backgrounds, values, and regulatory frameworks.

An industry player highlighted the naïveté in some developer approaches, where they assume that products performing well in China will automatically translate to overseas success. Yet the reality is that regulatory requirements, user needs, foundational values, and even ideologies and religious sentiments differ significantly from one nation to another. Challenges arise, such as those encountered while promoting “Civilization and Conquest” as a seasonal strategy game: the complexity of player alliance organization varies greatly between regions, making it difficult to replicate the domestic gaming ecosystem in an international context.

To address these challenges, companies like 4399 have experimented with smarter server allocation that accommodates players from various regions, simplified gameplay mechanics to foster team organization, and adjusted reward systems to cater to diverse player expectations. However, life is seldom without hiccups; achieving the desired results remains a work in progress. Furthermore, content customization is another critical aspect that can’t be overlooked, as local tastes and preferences require developers to adapt their offerings continuously.

The risk of off-mark content highlights the necessity of conducting thorough market research to avoid potential pitfalls concerning legal mandates, cultural appreciation, and marketing standards that may lead to local pushback. Learning from past mistakes, industry players emphasize the importance of understanding which content resonates with diverse audiences and which elements might incite backlash. It’s a process of careful calibration based on collective experience and player feedback.

Localization becomes key to success in the gaming sector. An effective localization strategy ensures that game content resonates with the target audience, avoids cultural faux pas, and lays the foundation for long-term viability in international markets. A strong localization effort delves deep, enabling a brand to establish roots outside its domestic framework. For instance, "Mushroom Brave Legend" employed localized strategies by integrating character designs appealing to specific markets, introducing elements from anime culture in Japan and addressing local tastes in South Korea with apocalyptic storylines. Such adjustments not only enhance player enjoyment but also improve overall acceptance and engagement.

Meanwhile, "Sword and Expedition: Start" exemplifies targeted diversity in content, featuring an array of heroes designed to cater to varied aesthetic preferences across different player demographics. Players encountering unique character styles that align with their specific tastes experience increased attraction and loyalty to the game. This level of customization requires a deeper understanding of player bases, which transcends geographical boundaries.

Ultimately, the push into international markets cannot rely solely on the efforts of game developers. The support from platforms plays an equally significant role. Jia Sai noted that with the ongoing enhancements of services offered by platforms like Google Play, they can better facilitate the localization and promotional efforts of their products.

In essence, the overarching strategy for successful overseas expansion is centered around understanding user experience. While every region has distinct demands, a common thread exists—the universal desire for an enjoyable gaming experience. The key for developers lies in identifying their target audience and seeking innovative approaches within the framework of game design to accommodate varying player preferences. This focus has resulted in years of learning and adaptation, as companies hone their strategies to thrive in an ever-evolving global gaming market.

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