China’s console and TV-based game market will hit $736 million in 2018

China’s console and TV-based game market will hit $736 million in 2018-Venture Beat

What happened: The total revenue for sales of game consoles, console game software and TV-based game software in China is projected to reach $736 million in 2018, up nearly 14.6% YoY, according to a report from Niko Partners. Of the total revenue, Niko projects 2018 console and TV-based games software revenue to reach $471 million, up 32% YoY. But the hardware revenue is projected to down 7% YoY to $265 million.

Why it’s important: When China lifted its decade-long ban on game consoles in 2014, the country expected the industry to experience a rapid boom. However, console makers and game developers are still stumbling in the contest for relevance in one of the world’s largest gaming markets due to the late arrival of consoles and users’ increasing favor for mobile devices. Compared with key segments of PC and mobile gaming, the game consoles sector is often overlooked. “Sony, Microsoft, domestic competitors, and possibly even Nintendo are active in China and sales have surpassed [three-quarters] of a billion dollars — so despite the barriers to entry, success is profitable,” according to Lisa Cosmas Hanson, managing partner and founder of Niko Partners.