China to become the world's largest gaming market in 2014

Tim Merel, an investment banker Digi-capital analyst Tim Morrill, predicted in a recent report that China will overtake the US as the world's largest gaming market in 2014 as the global gaming market shifts to social and mobile gaming, according to foreign media reports. In the report, Morel noted that the 2010 global video game industry had undergone fundamental changes, and that the pace of change had never occurred in the past decade. In the 68-page report, Morel predicts that by 2014, revenues from online gaming and mobile gaming will account for One-second of the total 44 billion dollars in the gaming industry, well ahead of the current one-third per cent. Morel also predicted that by 2014 China's share of the global gaming industry would rise to 25% from today's 12%, while US market share would fall from 26% to 22%.　　The Game Developers Conference in San Francisco is about to open this week, and Morel's report is a sobering indication that if US video game companies do not quickly transform into social games and mobile gaming markets, they will lose their creative power.　　Angry Birds may be an exception, but they have shown the potential of the market. From the current market situation can also easily dialectical Morel's point of view. Blizzard and EA are still the big engines of the traditional gaming market, but the traditional gaming industry is expected to find it hard to grow again and to be in decline. Zynga is currently the world's largest video game developer, with 266 million global gamers on Facebook. It has been reported that Zynga's revenue in 2010 has reached $850 million trillion, with net profit of $400 million. Another report says Zynga is making a new round of financing, with a valuation of $10 billion trillion. Dena, a Japanese mobile gaming company, spent $403 million last year acquiring Ngmoco, the iphone's lead developer. It is certain that the 2011 gaming industry will remain strong in the West and Japan.　　More importantly, video games are close to their best, with global gaming hardware and software revenues reaching $77 billion trillion, close to the global film industry's 85 billion-dollar box office total. But Morel believes Tencent's $315 million trillion purchase of riot games a few weeks ago was just a precursor. Tencent currently has a market capitalisation of more than $49 billion trillion, which gives Tencent enough power to buy any large video game company in the United States. Tencent currently has 20 million online players, and the game's gross profit margin reached 50%.　　In stark contrast, American game publishers need to invest 20 million of billions of dollars to develop a top game, with sales reaching 1 million sets to make ends meet. Venture capital companies have been investing in online gaming and mobile gaming markets. Compared with 2009, the total venture capital gain of 2010 game company increased by 52%, has returned to 2007 year peak level. Meanwhile，The amount involved in the 2010 game industry mergers and acquisitions increased by 60%. At present, the United States listed in the grand, swimming, giant network, NetEase and other Chinese network game companies, the market value has reached billions of U.S. dollars.　　By 2014, he predicts, Asia and Europe will occupy 90% of the world's total online gaming and mobile gaming market.　　In addition to online games, mobile gaming in the Chinese market in recent years the performance is also worth looking forward to. "American Game companies need to act immediately, whether it's raising capital to accelerate growth, consolidating previous advantages, or starting a joint venture to forge alliances with major overseas markets, and major video game developers must survive through development," Morel stressed. "Morel also believes that the media and entertainment industry's integrated companies have the best opportunity to adapt to the changes in the new market environment, while the single video game developers lack enough money to invest in new markets."　　Disney, in other words, has an advantage over Ubisoft. Morel also predicted that in order to enter the U.S. and European game market, future Asian companies will be a wave of industrial mergers and acquisitions, which will make China a global video game industry leader.　　In addition, the good news for the video gaming industry is that the 2014 global video game market will reach $87 billion trillion, from 2009 to 2014, mobile gaming and the online gaming industry will maintain a 18% annual growth rate. Morel also said that the 2009 network games and mobile gaming market size of 19 billion U.S. dollars, accounting for the global video game market total size of about 32%. By 2014, the market for online games and mobile gaming will reach $44 billion trillion, taking up half of the total size of the global video game market. (Edit/Xu Mingming)