China game market will see a slower growth during 2013-2017, with the CAGR approximating 16%. In contrast, the greater culture industry where the game market dwells is booming, according to research firm IDC.

The report says that after a quick growth before 2008, the China game market saw a turning point in development in 2009. The growth has slowed sharply, at almost equal paces in 2011 and 2012.  The game market includes PC online games, PC console game and mobile online game.

IDC believes that the China online game industry will be increasingly involved in pan-entertainment, another content-derivative industry. This is because of multiple reasons.

One, the rapid growth of the culture industry is one of the driving forces for a continued revenue increase of online game enterprises.

IDC forecasts that the outputs of the China culture industry will grow at a CAGR of 30% in the 12th Five-year Plan period, higher than that of the actual sales of the China game industry (24%). It is expected that the China culture industry will grow faster than the China online game industry around 2013, thus challenging the future growth of the latter.

Moreover, China’s GDP per capita exceeded USD 3,000 in 2008, a critical point for an explosive growth of the culture industry. The number in 2011 was more than USD 5,400, laying a sound foundation for a continued fast growth of the culture industry. Along with the constant upgrading of the China culture industry, the pan-entertainment content industry related to online games will be a deployment focus of online game enterprises.

Two: Online game enterprises are facing complicated competitions and challenges.

On one hand, pan-entertainment is not only a driving force for the development of China Internet industry, but also a channel for online content monetization of offline entertainment enterprises. The online game industry, with its mature business model, will inevitably be one of the best choices. This will make the fiercely competitive online game market even more complicated.

On the other hand, representative Internet enterprises have taken the lead in pan-entertainment deployment, which has, in turn, given their peers more pressure.

When taking an overall look at the pan-entertainment deployment of China online game enterprises, we can see frequent examples in the pan-entertainment industry, from the online game “Legend of Sword and Fairy” to the well-received movie and TV play; from “Mole’s World”, a children’s social game, to the animation series; and from the online game “91wan” to the online novel.

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