China's online game industry to grow $5.8 billion

Huge revenues are already being generated from Internet cafes in China alone, and it seems it's not the only game sector making an impact in the world's most populous nation. Market research firm Niko Partners has estimated that the Chinese game industry will grow 21 percent to $5.8 billion in 2011, all thanks to the continuing growth of the social gaming market.

Lisa Cosmas Hanson, managing partner of the firm, said, "Chinese game companies are looking for even more growth beyond their borders. And they have more experience operating online games and social games than anyone else in the world." She also predicted the market to grow to $11.1 billion by 2015. The firm also did an extensive gamer survey across 10 cities in China, stating that social network games are played on home and office computers instead of on Internet cafe computers.

According to an interview on Venture Beat, Hanson initially predicted the growth rate for online games in China would slow down in 2010 but didn't realize how popular Tencent's social network services and their games had become. Examples of such games include QQ Speed, QQ Tang, and QQ Dancer: Lord of the Dance Championship. She said, "People are jumping on this (social gaming) train, and it is going faster and faster. They're fun and free to play, and there are a wide variety of alternatives. Younger gamers in particular are playing social games."

China's social network game scene started in 2009, with the industry generating $80 million in revenue according to the firm. The amount reached $500 million by 2010.