China’s video game industry revenue grew 7.7 per cent to a new high this year, as domestic titles from the likes of Tencent Holdings and NetEase continued to expand globally and bets on artificial intelligence paid off, according to data released on Friday by the country’s semi-official gaming industry association.
The country’s gaming market posted total sales of 350.8 billion yuan (US$49.8 billion) for the year, breaking the previous record of 325.8 billion yuan set last year. The numbers were released by the China Audio-Video and Digital Publishing Association at its annual conference in Shanghai.
The growth was driven by a number of factors including increased policy support from the government, extraordinary performances in overseas markets, as well as the impact from technology innovations on efficiency, according to the report.
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The growth, which marked the third consecutive year of revenue increases for video game sales, reflected how the industry had navigated a period of regulatory recalibration to get back on track.
In recent years, Beijing has softened its stance on video game approvals. Throughout 2025, the National Press and Publication Administration, the Chinese agency overseeing online games, maintained a steady cadence of license approvals, providing the predictability necessary for long-term investment.
A screenshot showing the PUBG Mobile icon on a smartphone. Photo: Shutterstock Images alt=A screenshot showing the PUBG Mobile icon on a smartphone. Photo: Shutterstock Images>
In 2025, China was also expected to surpass the US to become the world’s largest video gaming market by sales, with estimated revenue of US$53.2 billion, according to a report from research firm Newzoo. It expected global gaming revenue to increase by 7.5 per cent year on year to US$197 billion.
The number of gamers in China rose 1.35 per cent from a year ago to 683 million, also a record high, according to the report by the industry association, although the gaming population has seen significantly slower growth compared with a decade ago when the mobile internet quickly expanded.
The record figures come as the country’s major studios – including Tencent, NetEase and miHoYo – have pivoted aggressively towards international markets in recent years, characterised by the success of titles including Genshin Impact, Black Myth: Wukong and Delta Force.
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