China’s video games market in 2025: A $50 billion opportunity
China’s video games market has firmly established itself as a global force in recent years, driven by both strong domestic demand and international success. From hit titles like Black Myth: Wukong to major mobile game releases, the video games market is set to rise higher with strong government policy. We project that China’s games industry to reach $50 billion this year. What drives the market and gamers in China? Download the key takeaways from our latest China Gamer Behavior & Market Insights
NPPA approves 173 video games in August 2025
The National Press and Publication Administration (NPPA), mainland China's regulator in charge of game approvals, issued ISBNs for 166 domestic games and 7 import games on August 21, 2025. This is the eighth batch of games approved in 2025 and the highest number of approvals in a single month since September 2020. It takes total approvals for 2025 to 1,050 domestic games and 69 import games. New titles from Tencent, NetEase, Shengqu Games, Alibaba, and Bilibili were among those approved. There were also 13 games included on the ISBN change list where games are able to change their name, publisher, or add new platforms.
Why this matters: Total video game approvals in mainland China for the first 8 months of 2025 have reached 1,119, up 21% YoY. We currently project more than 1,600 video games will be approved in 2025, with over 100 of them being import games. Korean and Japanese games benefited from this round of approvals with licenses issued for Uncharted Waters: Origin (LINE Games/ Koei Tecmo), Chaos Zero Nightmare (Smilegate), and Trickcal Re:vive (EPID Games). The regulatory environment continues to improve in China, with the NPPA taking a more frequent and open approach to game approvals.
India passes law to ban Real Money Gaming, promote esports and social games
The Promotion and Regulation of Online Gaming Bill, 2025 was introduced and passed within a week, to officially ban Real Money Gaming (RMG) in the country. The bill has passed in the Lok Sabha and Rajya Sabha (Houses of Parliament) and is currently awaiting an implementation date. The bill was introduced because RMG, which allows players to wager and win real money, was seen as addictive and financially harmful, with the industry generating higher revenue than the traditional video games industry. The bill also recognizes esports alongside social and educational games.
Why this matters: Niko Partners has long maintained that RMG and traditional video games are completely separate industries, and our India market model and 5-year forecast pertain to video games only. RMG platforms have already confirmed they are complying with the bill and have shut down operations in India. However, we note that certain firms such as Dream11 and MPL had already attempted to diversify into the traditional video games space, alongside other industries, which will keep them afloat. The bill is a positive move for the video games industry which is set to become a $1 billion market this year.
Esports World Cup and NGSC ends with key announcements
The 8-week long Esports World Cup 2025 (EWC) wrapped up on August 24 with Team Falcons winning the Club Championship Trophy and $7 million grand prize. EWC 2025 set new viewership records in its second year, recording 750 million viewers, and more than 3 million visited Riyadh’s Boulevard City, topping last summer’s 2.6 million. The New Global Sport Conference (NGSC) was also held with key announcements including the introduction of the Esports Nation Cup, an international competition where national teams will represent their countries. Lisa Hanson, CEO of Niko Partners, moderated a great panel on IP Strategies and also was interviewed on a podcast about research and the games and esports industry.
Why this matters: EWC 2025 featured over 2,000 players from 100 countries and 200 Clubs, competing across 25 tournaments for a prize pool of $70 million. At the same time the NGSC brought together more than 1,500 delegates, including 500 CEOs from the video games, sports, technology and investment sectors, including Niko Partners CEO Lisa Hanson. Saudi Arabia hosted a very impressive esports event and conference, with a palpable energy and enthusiasm for building community and being part of KSA’s fast journey to become one of the global hubs of gaming and esports.
PlayStation reveals first 4 games to benefit from MENA Heroes Project
Sony Interactive Entertainment has announced four new titles that will be part of the PlayStation MENA Hero Project. The games are: Red Bandits, from Team Agenda who are based in Saudi, Enci's Solution from Dark Emerald, based in the UAE, The Perfect Run from Tunisian dev Lantern Studios, and finally, A Cat's Manor from Happiest Dark Corner who are based in Bahrain. The games are set to release for PS5 and PC in the future.
Why this matters: Sony launched the MENA Hero Project in August 2024, looking to build on the success of the China Hero Project. The incubator project provides mentorship, training and investment for select game developers in the MENA region, with the aim to bring titles to PlayStation gamers worldwide. Sony also launched an India Hero Project with a similar goal. The projects show that Sony is recognizing MENA and India as key growth markets following success in China.
Game Science announces new game in Black Myth series
Chinese video game developer Game Science, known for hit title Black Myth: Wukong, has announced the next entry in the series will be called Black Myth: Zhong Kui, inspired by a mythical ghost-catching figure in ancient Chinese folklore. The trailer was shown at the Gamescom 2025 opening night live showcase. Game Science did not say when it would launch the game and no in-game footage was made available as the project is still in early development.
Why this matters: Game Science revealed the first gameplay footage of Black Myth: Wukong exactly five years ago, attracting millions of views and thrusting the then little-known studio into the limelight. Wukong was officially released on August 20, 2024, and went on to sell over 25 million units globally, becoming an overnight phenomenon in China. The trailer for Zhong Kui gained more than 2 million standalone views on YouTube and over 12 million on Chinese platform Bilibili. Game Science is backed by Tencent and Hero Games.
Alibaba wins appeal against NetEase in copyright infringement case
Alibaba confirmed that the Guangzhou Intellectual Property Court had overturned the first-instance ruling in its high-profile copyright infringement case brought by NetEase in 2021. The court found the original decision made in 2023 was flawed in both factual findings and comparative methodology, and has ordered a retrial. In the initial ruling, the Guangzhou Internet Court had concluded that Three Kingdoms: Tactics, developed by Lingxi (a subsidiary of Alibaba), infringed upon Immortal Conquest's (NetEase) copyright.
Why this matters: The new ruling states that the first-instance court had not fully examined the claims brought by NetEase. This second-instance ruling has far-reaching implications for the games industry in China. It sets a more rigorous and standardized benchmark for determining originality in games and limits the scope of what is protectable under copyright. This may reduce frivolous litigation from game developers as well.
Link to original article (Chinese) →
Roblox banned in Kuwait as controversies over child safety continue to grow
Kuwait's Communication and Information Technology Regulatory Authority announced on Thursday that would temporarily block users in Kuwait from accessing Roblox servers. This happened following the authority receiving several complaints from the public calling the game dangerous for children. Roblox has been hit with a string of lawsuits from parents and controversies as of late, all pertaining to predatory behavior, scams, poor moderation and sexual harassment of minors.
Why this matters: Kuwait joins a growing list of countries that have banned Roblox over child safety issues, following in the footsteps of Turkey and Oman, as well as Qatar just last week. The game was also banned in the United Arab Emirates from 2018 to 2021. In August 2025, Indonesia requested that Roblox strengthen its chat filters to remove harmful content and enhance child safety, warning that failure to comply could result in a ban. The bans show the risk of operating UGC platforms globally and the need for strict moderation and oversight, especially for gamers targeting younger players. Niko Partners notes that Roblox is a platform with only 3rd party titles, and the company has stated that it has taken steps to improve localization, quality and continually prioritizes safety for its gamers.
Valorant Mobile launches in China with 70m pre-registrations
Valorant Mobile officially launched in China on August 19. Co-developed by Riot and Tencent's Lightspeed Studios, the game immediately topped the iOS game download chart and entered the top 10 iOS game revenue chart. Prior to release, the game attracted 70 million pre-registrations, reflecting substantial pent-up demand and the strength of the Valorant brand in China's mobile-first market. In a notable move, Riot and Tencent have committed RMB 1.5 billion ($200 million) over the next three years to support Valorant Mobile's ongoing development and to build a sustainable esports ecosystem.
Why this matters: Valorant Mobile builds on the success of the original PC game, which has seen rapid growth since its domestic launch in 2023. The PC version recently surpassed 2 million peak concurrent players in China, laying a strong foundation for the mobile rollout. The launch is being amplified through a cultural marketing push, including a promotional music video with Canadian rapper BBNO$, designed to appeal to younger demographics. Our China Games & Streaming Tracker shows the launch has performed as expected, with Tencent taking a long-term approach to the title.
Link to original article (Chinese) →
Niko Partners offers the deepest, most trusted data and insights into the Asia, Middle East, and North African video game and esports markets. Our customers rely on our semi-annual market models, research reports, NikoIQ online intelligence, and custom consulting to make the smartest business decisions.
Vietnam’s mobile gaming sector shows strong H1 2025 momentum
As per AppMagic, Vietnamese mobile studios recorded around 42 million downloads in H1 2025, accounting for about 25% of Western Europe’s puzzle downloads, and often placed titles in the U.S. monthly top 10. According to Google, Vietnam's accumulated downloads have reached 6.7 billion, with standout casual puzzle hits like ABI's Wood Nuts & Bolts Puzzle and iKame's Screwdom 3D.
Why this matters: The pattern suggests Vietnam’s mobile edge lies in fast, cost-efficient puzzle production, and creator distribution, but sustaining momentum will require stronger design depth, analytics-led live updates, and structured mentorship to move beyond download spikes. Niko's 2025 survey also reveals that puzzle is the fifth most preferred genre in Vietnam, which is one rank higher than its position in 2024, corroborating the observed growth.
Valve updates Steam reviews to focus on user’s language
Valve has introduced a significant update to Steam's user review system, changing how review scores are presented based on the language of the gamer. Moving forward, users will primarily see review scores calculated from reviews written in their own language, rather than the aggregated global average. This change is designed to help consumers make more informed decisions by prioritizing local context and sentiment. The update addresses longstanding discrepancies in how games are received across different regions.
Why this matters: This is particularly impactful for markets like China, where user behavior on Steam differs markedly due to limitations in community feature access. Chinese users frequently use the review section as a substitute for community forums, resulting in longer, multi-part reviews with back-and-forth commentary. In some cases, games with generally positive global sentiment have been review-bombed in China over political or localization concerns, creating skewed perceptions in aggregate scores. Valve's adjustment helps mitigate such misalignment.
Events
Malaysia MPL Finals
Kuala Lumpur, Malaysia
September 12-15, 2025
Attendee: Edward Tien
Tokyo Game Show
Tokyo, Japan
September 25-28, 2025
Attendee: Lisa Hanson