China's games industry hits $51.8bn in 2025 as western market struggles

While western publishers are laying off staff and cancelling projects, China's games industry just posted $51.8bn in revenue for 2025 — more than five times the UK market's $8.76bn, according to separate figures from UKIE. Research firm Niko Partners published the numbers and projects the Chinese market will keep climbing: $53.9bn in 2026 and $59.8bn by 2030.

The growth is being driven by a mix of new releases and live-service stalwarts. Genshin Impact remains a key example of the evergreen model, and newer titles are already pulling massive numbers — Where Winds Meet, a 2025 action MMO, crossed 2 million global players within 24 hours of launch. Mini-games — browser-style titles that require no download — are also a significant slice of the pie, accounting for 20 percent of total spending, with 80 percent of Chinese gamers having played at least one. Esports engagement sits at 46.5 percent and is forecast to hit 51.3 percent in 2026.

Generative AI is shaping up as a major factor in China's continued rise. Niko Partners found that 60 percent of Chinese studios were already using gen AI in development, and 39 percent of Chinese gamers expressed interest in its integration into games — a sharp contrast to western audiences, who have largely pushed back on AI use over concerns about artistic integrity and copyright. Niko Partners also points to a more favourable regulatory environment as a potential unlock for international companies looking to enter the Chinese market through platforms like Steam, alongside growth in niche genres and expanded out-of-app monetisation.

The contrast with the west is hard to ignore. Gamescom recently showcased a wave of high-profile Chinese titles on the show floor, signalling that the country's development scene is increasingly confident on the global stage. If Niko Partners' projections hold, China's dominance in the global games market is only going to deepen through the rest of the decade.