(Yicai Global) July 26 -- The number of video gamers in China hit 534 million, and the industry is an oligopoly with Tencent Holdings Ltd. [HK:0700] and NetEase Inc. [NASDAQ:NTES] scooping up more than 60 percent of its revenue.
NetEase and Tencent logged incomes of USD4.1 billion (CNY27.98 billion) and USD10.3 billion (CNY70.84 billion) last year, respectively. The piece of the pie claimed by most other firms was less than 5 percent, and market concentration is set to rise further this year.
NetEase's online game revenue rose above CNY10 billion for the first time to CNY10.74 billion in the first quarter, and its mobile game income was about CNY7.9 billion. The industry's top two players' combined mobile game revenue was CNY18.6 billion in the quarter, accounting for more than 70 percent of the mobile game market, per historical data.
Hardcore mobile games have become increasingly popular, and many mobile adaptations of online games have quickly increased their revenue per user by attracting quality paying customers. The growth in game consumer numbers has slowed to a single-digit level as the demographic dividend disappeared.