China’s video games market is reportedly now worth over AUD $70 billion, thanks to year-on-year increased engagement in esports, an ever-growing player base, increased monetisation of game IP, the growth of lightweight online mini-games, and integration of AI tools enabling content creation and ‘more dynamic’ player experiences.
A new report from data analysis firm Niko Partners paints a picture of strong growth in this unique market as Chinese players continue to invest in video games while also ’embracing new content formats’ and new methods of discovery.
Chinese games market growth in 2025 – quick links
New developments in the Chinese market
The key data from Niko Partners is that China’s games market has experienced 5.4% year-on-year growth to AUD $71.9 billion, despite market pressures and the global economic downturn. It also forecasts continued growth into the next financial year, with the market expected to grow an additional 4.0% to AUD $74.9 billion.
By 2030, projection suggests the market will reach around AUD $83 billion.
By comparison, recent local data from IGEA and Newzoo outlined that the Australian market is currently worth AUD $4.2 billion, as of 2025.
China represents one of the world’s largest video games market by players and spending, with the total number of players expected to reach 769 million people by 2030.
This extensive growth will be supported directly by government investment. As Niko Partners notes, China’s 15th Five Year Plan to deliver economic growth provides ‘a supportive framework for the country’s gaming industry as part of broader efforts to strengthen digital innovation and cultural industries.’
It provides for new opportunities for domestic and international companies in gaming, while reinforcing its ‘strategic role’ within China’s digital economy. Gaming is seen as a significant industry, with a framework to support sustainability and growth into the future.
Trends shaping China’s gaming industry
Per analysis, part of the growth of China’s gaming industry is related to innovations in delivery, discoverability, and availability.
Niko Partners reports many Chinese gamers are now engaging with more ‘mini games’ online. These are lightweight games typically available on social platforms like WeChat and Douyin. 80% of all game players have reportedly played these mini-games, with this accounting for 20% of mobile game spending.
Social media is also becoming a driving force for industry growth in the country, with a reported 41% of people discovering new information via short video apps, and an additional 36.1% discovering new games on social media.
Generative AI is reportedly playing a part in this growth as well, as Chinese companies are ‘rapidly embracing’ the technology across their development pipelines and in player-facing features.
‘AI tools are being used to enhance content creation, improve operational efficiency, and deliver more dynamic player experiences,’ Niko Partners says.
This trend is also allowing for a greater volume of user-generated content. Many of the most popular games in the country are reportedly buoyed by this user-generated content or otherwise ‘evolving’ to become user-first creation platforms.
Another factor driving this growth is a human one: increased engagement within the esports ecosystem. 51.3% of all gamers in China reportedly engage with esports, up from previous data suggesting a 46.5% engagement rate. These results include anyone participating in esports, or watching esports.
While these newer factors have created challenges for the country’s games industry, notably in the demand for memory and semiconductor components for Generative AI use ‘constraining supply for consumer hardware and contributing to higher device prices’ it appears market growth continues due to increased player engagement supporting long-term growth.
Per Niko Partners, this data reveals an array of important trends in the high-value Chinese games market, and its opportunities for future growth.
‘Chinese players are embracing new content formats, engaging more deeply with esports ecosystems, and increasingly discovering games through short-form video platforms,’ the report concludes.
‘At the same time, publishers are finding new opportunities through AI-driven development, alternative monetisation strategies, and direct relationships with players.’
While continued growth will depend on the adaptability of companies, particularly as new challenges like hardware shortages arrive, it appears China’s games industry is well-positioned in the global market, with growth in new segments allowing it to thrive.
