Highlights from Niko Partners China Games & Livstreaming Tracker August 2026: RPG maintained their strong position among China’s most-watched livestreaming genres last month, with new games such as Lord of Mysteries and Mistfall Hunter gaining attention.
Exclusive: China’s game market expected to grow 4% in 2026 and hit $59.8B by 2030 | Niko Partners
China’s video game market reached a new milestone in 2025, generating $51.8 billion in revenue, up 5.4% year-over-year and surpassing the $50 billion mark for the first time. Niko Partners forecasts the market will slow somewhat this year, growing another 4.0% in 2026 to $53.9 billion, before reaching $59.8 billion by 2030, representing a five-year CAGR of 2.9%. Xiaofeng Zeng, Vice President of Niko Partners, and Daniel Ahmad, Director of Research & Insights at Niko Partners spoke to Gamesbeat on the latest China Player Behavior & Market Insights report that was recently released. The article has key takeaways for our readers, but please note that the report itself is 96 slides (including the appendix of player survey analysis) and is #2 in a 3-part series of China Country Reports for 2026. If you are serious about success in China, please contact us.
From Genshin Impact to Arknights: What drives China’s mobile games industry?
Niko Partners Vice President, Xiaofeng Zeng, spoke to The Straits Times about China’s video game industry and its expansion overseas. Of late, Chinese video games appear to be hitting their stride, with the 2024 breakout Black Myth: Wukong – based on Chinese mythology – catapulting this category of digital entertainment into global consciousness. “The Chinese domestic market is highly competitive, making overseas expansion a no-brainer,” he said. “Southeast Asia is an important market for Chinese mobile game developers due to its cultural proximity and low market-entry barriers. However, the most profitable opportunities remain in high-ARPU (average revenue per user) markets such as the US and Japan,” he continued. The article is available below.
Saudi Arabia’s PIF reportedly considers merging EA and Savvy Games
Saudi Arabia’s Public Investment Fund (PIF) is considering merging Electronic Arts (EA) and Savvy Games. The merger would combine major EA franchises such as EA Sports FC, Battlefield, and The Sims with Savvy-owned mobile titles including Monopoly Go! and Pokemon GO. PIF acquired EA through a consortium for approximately $55 billion last month and took the company private. No final decision has been made, and any merger is unlikely before Savvy completes its planned $6 billion acquisition of Chinese mobile gaming company Moonton.
Why this matters: Any potential deal could face antitrust scrutiny as regulators continue to closely examine large gaming-sector transactions. The report also noted that Savvy CEO Brian Ward stepped down last week after overseeing the company’s investment and acquisition strategy. The reported discussions highlight continued consolidation in the global games industry as companies seek scale and recurring revenue amid slower market growth. The outcome could further expand Saudi Arabia’s influence across console, PC, mobile, and esports segments, while increasing regulatory scrutiny of large gaming-sector acquisitions.
Qatar outlines plans to build a globally connected gaming ecosystem by 2030
Qatar aims to build a globally connected ecosystem for game development, publishing, and digital content while positioning itself as a gateway to the wider Middle East market. According to Mohammed Al Mulla of Invest Qatar, the country now offers a business-friendly environment, strong digital infrastructure, international partnerships, and support initiatives such as Startup Qatar, which has attracted more than 6,000 applications from around the world. Invest Qatar evaluates international gaming companies based on their potential to contribute to economic diversification, innovation, knowledge transfer, talent development, and local ecosystem growth.
Why this matters: Qatar’s goal is to establish a sustainable gaming ecosystem that attracts international developers and publishers, enables local studios and talent to compete globally, and remains adaptable to emerging technologies and industry trends. Qatar’s strategy reflects growing competition among MENA markets to attract gaming investment, talent, and international publishers. Industry stakeholders should monitor how Qatar’s incentive programs and ecosystem-building initiatives differentiate it from Saudi Arabia and the UAE as regional gaming hubs. Note: We published a Research Brief about Qatar and the GCC that is available for free download on nikopartners.com.
Games industry employment shifts towards APAC and China
Games industry employment is undergoing a significant geographic redistribution despite continued layoffs, according to data presented by Amir Satvat, general partner at 1Up Ventures and former Tencent executive, during the opening keynote at Gamescom Dev 2026. Satvat projects 14,666 games industry layoffs in 2026, approaching the 2024 peak of 15,631. Approximately 10,140 layoffs had already been announced by August 11, exceeding the 9,200 recorded across all of 2025. However, total global games industry employment has remained relatively stable, suggesting that job losses are increasingly being offset by hiring elsewhere.
Why this matters: The clearest shift is away from North America. Satvat estimates the region accounted for more than two thirds of tracked layoffs, losing approximately 25,000 roles, equivalent to 15% of its games workforce, over the broader period analyzed. California has been particularly affected, accounting for more than half of global layoffs during one 12 to 18 month period. Satvat attributed the geographic shift to factors including labor costs, government incentives, and talent availability. By comparison, available games industry roles increased 10% across APAC, including 12% growth in China, while Europe remained broadly flat.
Delta Force sets daily spending record with new season launch
Tencent’s Delta Force has returned to the top of China’s iOS game revenue chart following the launch of its latest season, recording its highest single day of mobile player spending to date on September 5, 2026. The new record comes more than a year after its mobile release and surpassed its previous peak from November 15, 2025. Chinese players accounted for more than 99% of mobile spending during the September 5 peak, highlighting the domestic market’s continued importance to the title. Delta Force has experienced several sharp revenue increases around major updates during its lifecycle, although spending has historically returned toward baseline levels within several days. It’s worth noting that the game is also available on Android, PC and console, and the boost on iOS may not be entirely representative of total revenue.
Why this matters: Delta Force‘s longevity strategy increasingly combines regular content additions with continuous optimization of existing systems. New maps, weapons, operators, and modes provide reasons for existing and returning players to explore the game, while Tencent’s Team Jade continues to revise map layouts, address dominant strategies, and introduce gameplay options for different player segments. This helps prevent continuous content additions from simply increasing complexity without improving the underlying experience. Social features, matchmaking for finding teammates, esports, community activities, and player created subcultures are intended to create relationships and behaviors that persist beyond individual seasonal updates.
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Sega and Netflix announce multi-title partnership across video game IP
Sega and Netflix have established a multi-title adaptation partnership covering Crazy Taxi, Sonic, and Stranger Than Heaven, expanding Sega’s strategy of developing its game IP across film and television. The first project will be a Crazy Taxi film, written by Dan Gregor and Doug Mand, the writers behind The Naked Gun reboot. Netflix will also develop a new Sonic animated series targeting an upper preschool audience. The project follows Sonic Prime, which debuted on Netflix in 2022. Sega’s upcoming Stranger Than Heaven will also receive a live action crime film adaptation, with Nakahara producing.
Why this matters: The partnership strengthens Netflix’s growing position as a destination for game related entertainment. Its existing and upcoming adaptations span properties including Cyberpunk, Devil May Cry, Assassin’s Creed, Gears of War, Minecraft, Clash of Clans, and Overcooked. Netflix is also increasingly being used for game marketing itself, with Rockstar recently debuting an exclusive extended gameplay presentation for Grand Theft Auto VI on the service. The agreement reflects how major game companies are increasingly treating IP expansion as a portfolio strategy rather than adapting only their largest franchises.
Level 5 apologizes for using Generative AI following fan backlash
Capcom plans to increase its focus on reactivating dormant IP following the strong launch of Onimusha: Way of the Sword, the franchise’s first mainline installment in more than two decades. Onimusha: Way of the Sword sold more than 1 million units worldwide on its September 4, 2026 launch day, taking lifetime sales for the Onimusha franchise above 10 million units since its debut in 2001. Capcom said prerelease demos and hands on showcases contributed to awareness among both existing fans and newer players. The performance provides further validation for Capcom’s strategy of extracting additional value from its extensive IP catalog.
Why this matters: Alongside annual releases for major franchises, the company said it intends to revive properties that have not received new titles recently, potentially allowing it to diversify its portfolio without relying exclusively on its largest franchises such as Resident Evil, Monster Hunter, and Street Fighter. However, Capcom is not limiting investment to established brands. Pragmata, a rare new IP from the company, launched in August and surpassed 1 million units within its first few days, demonstrating that Capcom continues to invest in original properties alongside franchise revivals.
Egypt’s Esports Summit announces sixth edition with EGP 1.5 million prize pool
FWZ, organizer of the Esports Summit (ESS), announced the event’s sixth edition in partnership with the Egyptian Esports Federation, scheduled for September 24 to 25, 2026, at Hassan Mostafa Stadium in Cairo. Organizers are targeting approximately 15,000 attendees, up from more than 10,000 at the 2025 edition, and will offer prizes and giveaways worth EGP 1.5 million (about $30,000) through the event’s new Gen Gamers Arena experience.
Why this matters: The 2026 edition will also introduce a program supporting content creators, providing selected creators with tools and resources to produce content and engage their communities during the event. Egypt’s esports events market continues to mature through larger audience targets, higher prize funding, and broader creator ecosystem support.
Huawei launches HarmonyOS 7 with over 35,000 compatible games
Huawei said more than 5 million devices upgraded to HarmonyOS 7 within 24 hours of its release, following the start of its public beta across supported smartphones, tablets, computers, smartwatches, and earphones in China. The combined installed base of devices running HarmonyOS 6 and 7 has now exceeded 85 million, with Huawei expecting it to surpass 100 million in Q4 2026. The growing installed base is increasingly important for game developers because recent HarmonyOS versions operate independently from Android and require native app and game support. Releasing a mobile game in China means not just developing an Android and iOS version, but a HarmonyOS version too.
Why this matters: The number of games available for HarmonyOS has increased from effectively zero to more than 35,000 within approximately two years, while more than 1,000 partner companies are participating in the ecosystem. More than 20 mainstream game engines now support HarmonyOS development. The company is simultaneously developing Huawei Game Center into a broader discovery and engagement platform, combining editorial recommendations, game guides, AI assistance, and community functionality. Reaching 100 million devices will solidify the commercial case for dedicated HarmonyOS development, particularly if Huawei can maintain the higher spending and payer conversion it has previously claimed vs Android.
Events
Tokyo Game Show
September 17-18, 2026
Tokyo, Japan
Attendee: Darang Candra
LA Games Conference
September 30, 2026
Los Angeles, USA
Speaker: Lisa Hanson
Attendee: Alexander Champlin
Use code NikoPartners20 for 20% off
GamingCon Bharat
October 17-18, 2026
Mumbai, India
Attendee: Narinder Kapur