Niko Partners observations at ChinaJoy 2026
Read our writeup on what was different from this year's edition, which ran under the theme “Level Up with AI"
Niko Partners Vice President Zeng Xiaofeng shared his observations from ChinaJoy 2026 in this new blog post. The event concluded with record attendance, drawing 438,900 visitors and more than 900 companies from 35 countries. The 2026 edition theme “Level Up with AI,” showcased the growing role of AI in China’s games industry, where 86% of game developers now utilize AI.
India’s gaming market surpasses $1 billion for the first time - New Niko Partners research
India’s gaming market crossed a major milestone in 2025, surpassing $1 billion in revenue for the first time. At $1.04 billion, the market grew 14.8% YoY, making India the fastest-growing video game market tracked by Niko Partners.
What’s fueling this growth? Read the highlights and download key takeaways from Niko’s latest India Player Behavior and Market Insights Report.
Konami celebrates Yu-Gi-Oh! Master Duel reaching 100 million downloads
Konami Digital Entertainment announced that Yu-Gi-Oh! Master Duel has surpassed 100 million cumulative downloads worldwide and launched a commemorative in-game campaign beginning August 5, 2026. The celebration also introduces new selection and secret packs featuring alternate-art and over frame cards, alongside the return of previously released alternate-art cards.
Why this matters: The100 million download milestone highlights the long-term global appeal of established trading card game IPs and the effectiveness of live service content updates in sustaining engagement. This comes after the Pokémon Trading Card Game Pocket also surpasses 100 million downloads. Niko Partners has tracked a resurgence in the popularity of trading card games over the past few years, driven both by physical and digital releases.
Link to original article (Japanese) →
Love and Deepspace sees major revenue hit after Valko controversy
According to Sensor Tower data, Love and Deepspace generated just over $10 million in iOS and Google Play revenue during July 2026, a sharp decline from approximately $40 million in June. Prior to July, the title had consistently generated more than $30 million in monthly revenue. While Sensor Tower does not track Android revenue in mainland China, market checks indicate that spending has also declined across Chinese Android channels. The revenue decline coincides with the ongoing controversy surrounding the canceled love interest Valko, which has significantly disrupted Papergames’ live service roadmap.
Why this matters: The controversy has expanded beyond the game’s player community. Papergames withdrew Love and Deepspace from Bilibili World 2026, one of Asia’s largest anime and gaming conventions, citing the ongoing situation. Chinese state media and the Ministry of Public Security also publicly criticized aspects of Valko’s promotional material, including slogans that were interpreted as trivializing home intrusion and violence against women. Although the game remains in operation, Papergames have not confirmed whether Valko will ever return, leaving uncertainty around future content plans.
Indonesian government aims to reactivate game rating system in 2026 following policy review
The Indonesian Ministry of Communication and Digital (Kemkomdigi) said the reactivation of the Indonesia Game Rating System (IGRS) is targeted for 2026 following a comprehensive evaluation of the rating system and related policies, although an exact reactivation date has not been announced. The review began after IGRS implementation was postponed in April 2026 and includes participation from gaming industry stakeholders such as the Indonesian Games Association (AGI), government agencies, and representatives from parent communities
Why this matters: The suspension followed public criticism over the incorrect display of IGRS ratings on the Steam platform in April 2026, prompting Kemkomdigi to establish a special investigation team to review the system, processes, and governance. Indonesia’s review of IGRS highlights the challenges of implementing national game classification systems across global distribution platforms such as Steam.
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China applies ecommerce tax rules to skin trading
Chinese Counter Strike 2 (CS2) players conducting large scale skin trading are reportedly being contacted by local tax authorities following the implementation of broader internet platform tax reporting rules. The development is not the result of new regulations targeting virtual items or games specifically, but rather the enforcement of ecommerce tax rules introduced in June 2025, which require online platforms to report qualifying transaction data to tax authorities.
Why this matters: Importantly, the measures are not directed at ordinary players or collectors. Instead, the rules target individuals engaged in sustained, profit driven trading activity, treating them similarly to other online merchants operating at commercial scale. Although the measures are unlikely to affect typical players, they reinforce that valuable in game items are increasingly being treated as taxable digital assets when traded commercially.
Nintendo to officially launch Nintendo Switch 1 & 2 in Indonesia
Nintendo will officially launch the Nintendo Switch and Nintendo Switch 2 in Indonesia in December 2026, establishing a formal hardware presence in one of Southeast Asia’s largest gaming markets. Distribution will be managed by Nintendo Singapore and PT Nusantara Interactive Niaga, part of Indonesia’s Salim Group and Nintendo’s official local partner. Nintendo will also officially distribute its latest Pokémon titles in the market.
Why this matters: Indonesia represents the latest stage of Nintendo’s expansion across Southeast Asia. The company previously strengthened its presence in Singapore, Malaysia, and Thailand, including the introduction of local Nintendo eShop services, as it gradually builds official infrastructure across the region. However, we do note that Nintendo has yet to confirm eShop support for Indonesia at this point.
Chinese court rules that online game accounts can be inherited
A Beijing court has ruled that the usage rights to online game accounts can be inherited, following multiple similar cases over the past few years. The most recent case involved a mother seeking to inherit her late son’s 87 online gaming accounts after his death in 2025. The game company initially refused to transfer the accounts, citing its user agreement, which states that it retains ownership of all account related data, including game characters, virtual items, and in game currency.
Why this matters: The court ruled that a heir held the right to use the account, but that ownership and continued access to the game lied with the company. The ruling builds on China’s broader recognition of digital property rights. Since the Civil Code came into effect in 2021, digital assets have received legal protection, and in 2025 the Supreme People’s Court introduced a dedicated category for disputes involving data and virtual property. Over time, this could influence how game companies structure user agreements, account transfer policies, and digital asset management, particularly as the value of virtual goods and long lived game accounts continues to increase.
Events
LA Games Conference
September 30-October 1, 2026
Los Angeles, USA
Speaker: Lisa Hanson
Attendee: Alexander Champlin
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