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According to brokerage China news, at noon today, Hong Kong game stocks collectively crashed, with NetEase's largest intraday drop of more than 28%, Tencent Holdings' largest intraday decline of more than 15%, and CMGE and Bilibili once fell more than 10%. In addition, A-shares opened in the afternoon, mobile game stocks fell collectively, Baotong Technology 20cm fell to a halt, Chinese Online, Palm Fun Technology, Fuchun Shares, Kunlun Wanwei, Yao Ji Technology, Gigabit, Sanqi Mutual Entertainment, etc. all fell by more than 10% or closed the board.
On the news side, on December 22, it was reported that the National Press and Publication Administration issued the "Measures for the Administration of Online Games (Draft for Solicitation of Comments)", which is now open to the public for comments. It mentions that online games are not allowed to set inducing rewards such as daily login, first recharge, and continuous recharge.
Online game publishing business units must not provide or condone high-priced transactions of virtual props through methods such as speculation or auctions. All online games must set user recharge limits and publicize them in their service rules, and pop-up warnings should be given to users' irrational consumption behaviors.
- Game classification
Nowadays, gaming mostly refers to video games that operate on various platforms. Video games have a wide audience base. It involves the development, operation, sales and other economic fields of video games, and forms its own industrial chain. As an entertainment consumer product, the video game economy has become a very important part of the entertainment industry with the increasingly powerful online economy.
In the current situation, mobile games are game software that runs on smartphones (i.e., mobile games in this report), and the operating systems of smartphones are mostly iOS and Android.
- The scale of online game users
Online games are a newly born industrial format in the field of people's entertainment under the development of Internet technology, and it relied on the development of the Internet at the beginning of its birth. In 2020, the number of online game users in mainland China was 519 million, with a usage rate of 52.4%, and as of June 2021, the number of online game users in mainland China reached 509 million, and the usage rate dropped to 50.4%. With the decline in the number of online game users and the rapid increase in the number of supply enterprises, the mainland online game industry may have an oversupply in the future.
-- The size of the online game market
According to the "China Game Industry Report" released by the Game Working Committee (GPC) of the China Audio and Digital Association, the actual sales revenue of the mainland online game market has shown a year-on-year growth trend, and it has achieved great growth during the epidemic in 2020, with the actual sales revenue of China's online games reaching nearly 280 billion yuan, a year-on-year increase of 20.7%.
-- The future development trend of online games
Online games will enter the stage of high-quality and refined development. From 2018 to 2019, the growth rate of the mainland online game market declined, and the home isolation policy of the new crown epidemic in 2020 brought a new generation of development dividends to the online game market.
Lin Fengyang, head of product planning at Tencent Interactive Entertainment's Social Value Exploration Center, believes that the deep integration of "Game+" with the industry, the breakthrough development of engine, art, AI big data and other technologies and the breakthrough development of key XR technologies, as well as the accompanying new experience for players and new ideas for the industry, will contribute new possibilities to the development of the industry.
Li Wenyu, CEO of Shanghai Digital Pharmaceutical Intelligent Technology Co., Ltd., believes that the cross-border integration of the "trinity" of game + Internet + medical care is not only a new challenge across industries, but also the general trend of medical innovation. Games can not only bring people a sense of mental and psychological relaxation and happiness, but also heal pain, from "games bring happiness" to "games heal pain" in the ideological transformation, digital medicine intelligence has found the intersection and opportunity of serious medical treatment and easy games, and started the journey to the medical field to create a cross-border brain health digital therapy.
Prospective Economist APP Information Group
For more research and analysis of this industry, please refer to the "Analysis Report on Business Model Innovation and Investment Opportunities in China's Online Game Industry" by Qianzhan Industry Research Institute.
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