China’s video game industry has reached a historic milestone in 2025, posting its highest-ever revenue as major studios expand overseas and ramp up investments in artificial intelligence.
According to data released by the China Audio-Video and Digital Publishing Association at its annual conference in Shanghai, industry revenue rose 7.7 per cent year on year to 350.8 billion yuan (US$49.8 billion), surpassing last year’s record of 325.8 billion yuan.
The growth marks the third consecutive year of revenue increases, signalling a strong recovery after years of regulatory tightening. Industry analysts attribute the rebound to steadier government policy support, exceptional overseas performance by Chinese-developed games, and technology-driven efficiency gains, particularly from AI.
China is now poised to overtake the United States as the world’s largest gaming market, with total revenue projected to reach US$53.2 billion this year, according to research firm Newzoo. Globally, gaming revenue is expected to climb 7.5 per cent to US$197 billion.
The number of gamers in China also reached a new high, rising 1.35 per cent to 683 million players, although growth has slowed compared with the explosive expansion seen during the early mobile internet boom.
Chinese developers are increasingly looking abroad for growth. Overseas sales of Chinese-developed games jumped 10.2 per cent to 20.5 billion yuan in 2025, powered by global hits such as Genshin Impact, Black Myth: Wukong and Delta Force.
Tencent’s Delta Force, developed by Timi Studio Group, attracted nearly 30 million daily active users in China a year after launch, putting it on par with the company’s flagship title Honor of Kings. Other successful exports include Whiteout Survival by Century Games and NetEase’s Where Winds Meet.
Mobile gaming continued to dominate the market, accounting for 73.3 per cent of total sales, with revenue climbing 7.9 per cent to 257.1 billion yuan. PC games contributed 78.2 billion yuan, representing 22.3 per cent of total industry revenue.
The United States remains the largest overseas market for Chinese games, followed by Japan and South Korea, underscoring China’s growing influence in the global gaming landscape.
