In the domestic game market, where involution has intensified and the ceiling has been reached, competition is becoming fierce. The actual sales revenue of China's game market in Q3 2022 was 59.703 billion yuan, a decrease of 12.61% month-on-month and a year-on-year decrease of 1

In a domestic game market where involution has intensified and the ceiling has been reached, competition is becoming fierce. The actual sales revenue of China's game market in Q3 2022 was 59.703 billion yuan, a decrease of 12.61% month-on-month and a year-on-year decrease of 19.13%. July to September is the summer season, which has always been the hottest period in the game industry. However, with the growth of users and the retreat of bonus , the domestic game market has entered an era of stock competition.

The domestic game market is slowing down, mainly affected by two major factors: regulation and version number. Under the strict implementation of anti-addiction regulations by domestic game manufacturers, minors only spent more than 20 hours playing games during the entire summer vacation; the review and supervision of new games have become increasingly strict, and the total number of version numbers and has dropped significantly. The vitality of old products is limited, new revenue-generating carriers are decreasing, and the game industry as a whole is facing the dilemma of sluggish growth.

Therefore, in the past two years, going overseas has become the choice of many game manufacturers. Tencent , NetEase, miHoYo, Lilith, Sanqi Interactive Entertainment and other major game companies have also focused on overseas business, conquering overseas markets such as Southeast Asia, Japan and South Korea, Europe and the United States, South America, the Middle East, and to jointly seek new growth.

From the perspective of monetization capabilities, the above-mentioned overseas regions are also the markets with the highest per capita game spending. Among the world's major game markets, Japanese players have the highest per capita consumption, reaching US$291 per person in 2020, followed by South Korea, the United States, and countries in Western Europe. In addition, emerging markets such as Vietnam, Indonesia , Brazil and other countries have rapid growth in population and economy, and the corresponding game markets will also continue to grow.

Quantuo data shows that in the first half of 2022, the actual sales revenue of China’s independently developed mobile games in overseas markets was distributed by region. The U.S. market accounted for 31.72%, and the Japanese market accounted for 17.52%. The two together accounted for more than 49%, which is the main target market for Chinese game companies to go overseas. The Korean market accounts for 6.29% of China’s overseas revenue from independently developed mobile games, ranking third. However, the gap between Germany, the United Kingdom and other regions in terms of revenue share and South Korea is gradually narrowing.

For overseas user groups, due to certain differences in cultural backgrounds, values, etc. of different countries, their nationals’ preferences for games will also be different. If you want to break through cultural barriers and understand the tastes and market demands of players in different countries, you need to conduct localized operations for different markets and cultures, gain timely insight into changes in local user preferences, and best meet the needs of game users in different regions.

technology is also the key to promoting the overseas expansion of games in the future. Since this year, Tencent, miHoYo, NetEase and other manufacturers have all accelerated the cloudification process of their leading products. Products such as "Cloud·Original God", "Cloud·Tianya Mingyue Dao", "Cloud·Fantasy Westward Journey", "Cloud·Yimengjianghu", "Cloud·Onmyoji" and "Yunluyin Faith" have been launched one after another.

Quantuo data shows that China’s cloud game market revenue has reached 4.06 billion yuan in 2021, with a year-on-year growth of 93.3%. It is expected that China's cloud gaming market revenue will increase by 95.2% year-on-year to 7.92 billion yuan in 2022, and will continue to develop at a compound annual growth rate of 74.8%, reaching 34.28 billion yuan in 2025. Compared with the global cloud game market's compound annual growth rate of 51% per year, China's cloud game market growth rate has always been at the forefront of and .

Quantuo Data believes that overall, the overseas recognition of China's self-developed game products continues to increase and has become an important carrier for Chinese culture to go overseas. As more and more domestic games enter overseas markets, domestic manufacturers need to invest more in polishing their products and accumulating users through high-quality products. They are expected to upgrade from a single hit to a global IP and gradually realize the globalization of domestic games. In the future, domestic game manufacturers still have room for growth in their overseas market revenue.