A game player participates in a friendly match during the launch ceremony of an esports carnival in Beijing on 30 April (VCG)

One figure alone illustrates the scale of the phenomenon. According to a report published in March by Gamma Data, a market research institute, video games developed by Chinese studios generated $2.11 billion in the global market last February, a year-on-year increase of 40.46 percent. In 2024, revenues from Chinese video games abroad rose by 13.39 percent, ending two years of decline. This acceleration was confirmed in the first quarter of 2025, with the growth rate rising to 17.92 percent. 

The international presence of Chinese companies in the sector is evolving. It is shifting from an exploratory phase to a more profound internationalisation strategy. What is driving this growth is no longer simply repeating past successes, but a genuine strategic and creative transformation. 

A trajectory guided by quality 

For a long time, China’s video game industry relied on a narrow range of flagship genres to establish itself in the world market. According to Gamma Data’s 2024 Report on Chinese Game Exports, strategy, shooter and role-playing games accounted for more than 60 percent of foreign revenues among the top 100 mobile titles developed in China. These three genres have dominated the rankings for five consecutive years. 

The strategy was clear: focus on mature, market-proven genres, then adapt them across different themes to acquire users rapidly through large-scale marketing campaigns. Competitiveness rested on meticulous management of mathematical models, the pacing of in-game events and cost control. 

While this model remains operational, its marginal returns are diminishing. Gamma Data shows that for the 100 most profitable mobile games, marketing expenditure increased by 86.6 percent year on year, while more than 60 percent of major publishers saw their net profit decline. In short, investment has doubled without returns following the same trajectory. 

International analyses confirm this trend. Despite a rise in advertising costs of 15 to 20 percent across major platforms, the decline in conversion rates is inexorably squeezing the margins of traditional models. 

The year 2024 marked a turning point with the global craze for Black Myth: Wukong. Unlike conventional business models, its success did not rely on either in-app purchases or user acquisition. Its exceptional quality, captivating storyline and unique aesthetic demonstrated the competitiveness of high-quality Chinese productions on the world stage. 

The structural shift was confirmed this year with a series of high-quality multiplatform games. In February, China’s PC game market recorded year-on-year growth of 56.75 percent, driven notably by a title that generated more than 700 million yuan ($103.4 million) in a single month. 

Now, faced with the growing ineffectiveness of conventional methods, a new path is being charted: growth no longer depends on deployment volume, but on the intrinsic quality of the work itself. Today, quality is no longer merely an advantage; it has become the indispensable key to accessing the global market. 

A child tries on a 3D-printed helmet at the Southwest International Model and Video Game Exhibition in Kunming, Yunnan Province, on 11 April (CNS) 

Beyond cultural symbols 

In 2024, the global video game market reached approximately 1.2 trillion yuan ($177.26 billion), a 3.31 percent increase on the previous year. In comparison, the growth rate of Chinese games in the world market was more than four times the global average, demonstrating their rising popularity. This success is no longer based solely on labels such as “Chinese culture,” but on the quality of gameplay and the richness of the user experience. 

Cultural symbols cannot be transposed superficially. The direct use of traditional elements, such as Peking Opera masks and paper-cut designs for skins or scenery, has proved ineffective. These cultural elements risk being misinterpreted when removed from their original context. The example of Mei Lanfang, the renowned Peking Opera artist, is often cited: during his visit to the US in 1930, local audiences interpreted the white makeup, which symbolise treachery, as a sign of purity. 

Today, the sector’s leading players agree on the need for deep integration between game and culture, stimulating spontaneous interest among players. For example, in a game featuring Peking Opera characters, the developers did not use explanatory pop-up windows, but integrated singing and movement into combat sequences. Certain clips have accumulated more than 10 million views on international video platforms, prompting many foreign players to study the meaning of the lyrics. 

These examples reveal a common trend: using a universally understood language of play to convey specific cultural symbols. Players can therefore discover a new culture and engage with it more effectively through entertainment. 

The booth for the Chinese video game Honor of Kings at the 32nd COMICUP in Hangzhou, Zhejiang Province, on 1 May (VCG) 

Towards deeper internationalisation 

In recent years, the US, Japan, the Republic of Korea, Germany and the UK have become the five most lucrative overseas markets for Chinese video games. Although competition in these countries is intense and user acquisition increasingly expensive, these major economic powerhouses are not saturated. Two structural opportunities remain to be seized. 

First, exploiting genre gaps in mature markets. Globally, casual gaming has surged, with its share of total revenues rising from 1.8 percent in 2022 to 6 percent in 2024. The meteoric success of hybrid titles combining casual mechanics with strategy in North American, Japanese and Korean markets demonstrates that an innovative concept can still uncover and meet unmet needs. 

Second, the demographic potential and modernisation of payments in emerging markets. In Southeast Asia, the Middle East and Latin America, smartphone adoption and digital payment infrastructure are advancing rapidly. The main obstacle to entering these markets is not linguistic or cultural barriers, but a significant gap in game design. Publishers continue to design games for a young audience, neglecting the expectations of middle-aged and older players who nonetheless seek denser narratives, more refined aesthetics and more accessible pacing. To seize these opportunities, companies must develop genuine design capabilities oriented towards the global market. 

A crucial policy signal emerged in April 2025: the State Council integrated video game internationalisation into pilot projects for opening up the services sector. The aim is to structure the entire value chain internationally, from licence creation to production, distribution and operation. 

However, this policy support is merely a springboard; the key remains the intrinsic competitiveness of the product. A consensus has emerged in the industry: it is no longer simply a matter of exporting existing games, but of thinking globally from the development phase.  

These trends are reshaping the landscape of China’s video game ecosystem. Companies able to adapt will gain access to a broader international market, while others risk stagnation.   

The author is cofounder and chief analyst of Gamma Data