China's games market surpasses $50 billion for first time in 2025

China's video game market crossed the $50 billion threshold for the first time in 2025, reaching $51.8 billion and representing 5.4% year-over-year growth, according to a new report from Niko Partners. The milestone marks a significant moment for the world's second-largest gaming market.

Niko Partners projects continued but moderate growth ahead. The market is expected to expand 4% in 2026 to $53.9 billion, followed by growth to $59.8 billion by 2030, representing a five-year compound annual growth rate of 2.9%. The player base is forecast to reach 769 million by 2030, with average weekly playtime rising to 15.8 hours from 14.1 hours in 2024.

Growth drivers include stronger-than-expected performance from newly launched titles and legacy evergreen games. Mini-games emerged as a major growth segment, with 80% of Chinese players engaging in the genre, which now represents nearly 20% of mobile game spending. Annual player average revenue per user (ARPU) exceeded $70 for the first time in 2025 and is projected to reach $77.68 by 2030.

Short video apps have become the leading game discovery channel in China, with 41% of players using them to discover games and information across PC, mobile, and console platforms. Esports engagement increased to 51.3% of players, up from 46.5% the previous year, reflecting growth through playing esports games, watching events, or competing in tournaments.

Niko Partners identified five key market trends through 2030: growth in niche and boutique genres, increased out-of-app monetisation and direct-to-fan models, regulatory improvements, higher consumer spending on premium PC and console titles, and integration of generative AI. Chinese game companies are rapidly adopting generative AI across development pipelines and player-facing features, alongside broader expansion of user-generated content platforms.

The inclusion of video games in China's 15th Five-Year Plan for National Economic and Social Development (2026-2030) provides regulatory support, marking a shift from their previous classification as digital cultural products. The report notes that ongoing innovation, regulatory clarity, and robust player engagement continue to support long-term market growth despite challenges from internet censorship and semiconductor demand pressures.