BEIJING, Nov. 4, 2009 (Xinhua News Agency) -- China's online game market revenue size is estimated to hit 7.17 billion yuan in the third quarter of this year, up 34.5 percent year on year and 6.3 percent quarter on quarter, according to iResearch, a market researcher.
The following Chart One shows the online game market size in China from the third quarter of 2007 to 2009.
The market's revenue estimated by iResearch is relatively higher than that provided at the end of October by Analysys International, another market research, which read 6.89 billion yuan, as Chart Two shows below.
iResearch believes that the online game market's decelerated growth shows that the industry has matured and now is in healthy development, after its high-speed expansion during its primary stage of development. Based on the situation in the first three quarters, the market size is estimated to top 27.5 billion yuan in 2009.
Among the online game operators, Tencent.com (0700.HK) ranked first by capturing 20 percent of the total market share. It also operated four of the 10 most popular online games in China in September. With well-design product varieties and sound operations, Tencent is expected to hold onto its lead market position.
The second to fifth operators were respectively Shanda (SNDA.NASDAQ), Netease (NASDAQ:NTES) (NTES.NASDAQ), Perfect World (PWRD.NASDAQ), and Sohu (NASDAQ:SOHU) (SOHU.NASDAQ). The top five ranking is unlikely to change, given their stable performances.
The following Chart Three shows the Top 10 online game operators in China.
Among webgame operators, Oak Pacific Interactive outperformed its peers by diversifying its game products. Its revenue from webgames is expected to enjoy strong growth, fuelled by its rich user base and capital, and also the promotions by Mop.com, an entertainment interactive website, and Renren.com, a social networking services (SNS) website.
Meanwhile, the emerging game export business helped some companies gain revenue from overseas businesses. DACN.com's revenue from overseas has accounted for 40 percent of its total.
The following Chart Four shows the Top 15 operators' revenue from online games in China in the third quarter of this year.
iResearch believes that because China's online game market has matured, operators' resources and experiences will be the key factors for success. Companies with weak user bases, simple product line, and dull business models will be finally washed away.
