For today's developers and publishers, China is one of the world's largest and most lucrative video game markets. According to Statista, analysts predict China's gaming industry will generate a staggering $94.49 billion in 2024—the highest gaming revenue of any global market. Chinese gamers are increasingly spending more time and money on games. According to insights from Niko Partners%20and%20console%20(2.9%25)), 62% of PC gamers in China spent more money on games this year than last year—additionally, 2 out of 3 mobile gamers complete mini-games daily or several times throughout the week. While China presents significant opportunities for massive gaming revenue and audiences, there are equally significant barriers to entry. Regulatory compliance in China is complicated. A deep understanding of the nuances of Chinese cultural norms and consumer habits is crucial to meeting the market's strict requirements. To help you successfully launch your game in China, this guide from Xsolla will provide an overview of the Chinese gaming landscape, tips to navigate regulatory requirements, and a rundown of the top digital payments Chinese gamers use. Let's dive in!

Understanding the Chinese gaming landscape

Gaming culture in China is constantly evolving. China is a significant leader in mobile games, accounting for 31% of global mobile gaming revenue. Domestically, approximately 650 million gamers play mobile games in China, demonstrating the nation's growing appetite for games on the go. Even when they aren't gaming, 4 out of 10 Chinese gamers watch gaming-related video content, such as esports or video game live streams. The recent smash hit Black Myth: Wukong in 2024 demonstrated a significant shift in China's gaming culture. The game hailed as the first Triple-A title developed in China puts players in the shoes of Sun Wukong, a popular figure from Chinese mythology. As one of the fastest-selling games of all time, Black Myth: Wukong is a testament to China's increasing effort to enter the global gaming stage. Not only that, but the game also marks a heightened focus on preserving, strengthening, and spreading elements of traditional Chinese culture through modern media technologies. Localization: The key to resonance with Chinese gamers Game localization is becoming increasingly important in securing global audiences, and China is no exception. Localization is the process of translating, transcreating, or omitting the language and cultural elements in a game to benefit the understanding and enjoyment of the target audience. Some of the typical qualities of Chinese-developed games include highly specific cultural references and tight UI requirements due to the conciseness of the Chinese written language. Because of these unique properties, localizing games for a Chinese audience can be challenging for developers unfamiliar with the region and culture. However, successful localization can significantly increase a game's revenue from international sales, especially when targeting a gaming market as substantial as China's. Localization isn't the only challenge foreign developers face when attempting to break into China's game market. Gaming regulations mandated by the Chinese government require experience and patience to navigate. For example, the National Press and Publication Administration (NPPA) recently revealed plans to limit in-game purchases for all gamers. Gamers under the age of 18 are restricted to 3 hours of gameplay on weekends and holidays only. Luckily, Xsolla has veteran expertise navigating these restrictions and an extensive network to
help your game find footing in China. Navigating regulatory requirements for developers China began regulating its games market in the early 2000s, but some of the harshest restrictions arrived in 2021. In addition to gaming time limitations for minors, developers must meet the NPPA's high approval standards. The hoops to jump through include meeting technical and content standards as well as obtaining a license from the government. The Chinese government is especially sensitive to cultural appropriateness in gaming content. The NPPA may censor or outright ban certain games deemed too violent, immoral, or politically charged. Chinese history is also tricky in gaming, as the Chinese government will often reject games that twist or exaggerate historical figures or events from China's past. China's restrictions may loosen as the gaming sector grows more powerful and culturally relevant. For example, after new proposed regulations on games in January 2024 caused gaming stocks to plummet, the Chinese government backtracked and reversed its position on many of the harsher restrictions proposed. Still, the most effective way to navigate the Chinese regulatory environment is to work with a local partner who understands the ever-changing approvals process and Chinese cultural compliance. Deep dive: Chinese gaming payments infrastructure E-commerce and digital payments thrive in China. Chinese shoppers use mobile devices for nearly 70% of their online purchases, and digital wallets are quickly becoming the default payment method for physical and online purchases. The dominant digital wallets are Alipay and WeChat Pay, which account for 90% of China's total digital wallet transaction value (US $7.5 trillion).

• Alipay has over 900 million users in China, making it one of the most popular payment platforms in the region. Offering services like bill payments, shopping, and money transfers, Alipay is a one-stop shop for financial needs and integrates with the expansive Alibaba ecosystem.
• WeChat Pay is Tencent's digital wallet, which accounts for 40% of the online payment market in China. It is integrated with the massively popular social messaging app WeChat and offers a full range of services, such as money transfers, travel booking, and paying for goods and services.

84% of Chinese shoppers have adopted digital wallets, and gamers are no exception to the growing trend. Integrating China's top digital wallets into your game is essential to ensuring successful conversions and boosting player retention.

Confidently access the Chinese market with Xsolla

Based on the above overview of the Chinese gaming landscape, here are our leading tips for positioning your game for success in the promising Chinese market.

• Respect the regulatory environment. Take time to evaluate your game's content and themes. Is there any material in your game that could present issues with approvals from the Chinese government? When in doubt, working with a partner with extensive knowledge of China's regulatory process is essential for navigating the approval procedure.
• Adopt a robust localization strategy. Work with a localization partner to ensure your game resonates culturally with a Chinese audience. Whether including specific references, making UI adjustments, or omitting potentially sensitive content, localizing your game for your target audience is a relatively small cost that can yield much greater revenue.
• Incorporate local payment methods. Let players use the payment methods they are most comfortable with to maximize conversions and avoid abandoned carts.

Xsolla is your partner to elevate your game for high performance in the massive Chinese market. With over 700 payments supported by Xsolla, you can easily integrate the payments your players prefer—including top Chinese digital wallets WeChat Pay and Alipay. Navigate China's complicated gaming regulations and laws confidently with Xsolla's team of industry veterans with decades of experience. Ready to take the next steps? Start your journey towards unlocking new revenue in China by reaching out to Xsolla's team today. Or, if you want to see Xsolla Payments in action, check out our interactive demo. Finally, create a Publisher Account to explore more solutions and access finely-tuned tools to take your game revenue to the next level.