80% of Devs Plan to Launch Games in China, But Most Don’t Understand the Country's Market

China represents an exceptionally lucrative market for the video game industry, generating up to $50 billion in annual revenue from an estimated audience of over 700 million players. Mobile gaming is particularly prominent in the region, capturing up to 70% of the local audience. Driven by the potential for immense unit sales and high player tolerance for in-game spending, Western studios are increasingly eager to expand eastward. According to a recent study conducted by game distribution platform and publisher Rokky, up to 80% of developers across North America and the United Kingdom plan to launch a game in China by 2028. Furthermore, 49.5% of surveyed respondents have already successfully launched a title in the country within the last five years.

However, the new study highlights significant knowledge gaps and potential pitfalls for Western studios attempting to enter the Chinese market. Regulatory walls and strict certification channels pose major hurdles, with prominent titles such as Grand Theft Auto 5 having never been officially released in the country. To accommodate regional nuances and regulations, developers often need to build entirely separate versions of their games. Notable examples requiring dedicated China-only versions include PUBG Mobile, Minecraft, VALORANT, and ARC Raiders.

The Rokky survey details several core areas where Western developers admit they lack understanding. Perceived partnership barriers are viewed as obstacles by 43% of developers, while 38% expressed fear regarding local IP theft or piracy. Additionally, 32% of respondents felt they did not understand how to market to local audiences, and 11% confessed they had no idea how licensing worked within the country. Nearly half of all surveyed developers believed that launching a game in China is impossible without partnering with a local Chinese organization, a requirement that can lock out smaller independent studios.

Distribution and promotional challenges further complicate expansion efforts. Only 44% of developers were able to correctly identify WeGame as a digital Chinese storefront comparable to Steam, with 27% mistakenly believing WeGame is actually a Chinese publisher. Moreover, the Great Firewall of China blocks traditional Western marketing platforms like Google Ads, leaving many developers uncertain of how to properly promote their products. While some studios assume Chinese players use virtual private networks to buy games on international versions of Steam, the reality is that many local users utilize 'game booster' services to connect to overseas servers.

As international traffic flows both ways, an increasing number of Chinese studios are actively designing games with Western audiences in mind, such as Eclipse Glow's Tides of Annihilation. Titles originating from China—including Arena Breakout, Genshin Impact, Black Myth: Wukong, Wuchang: Fallen Feathers, The Defiant, and Blood Message—demonstrate high-budget production pipelines and strong quality levels. Ultimately, Rokky's report warns that simply copying and pasting Western distribution and marketing strategies will fail to resonate with China's specialized gaming market.