Revenue in China's video game industry rose 7.7% this year to a new high, 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 by China's semi-official gaming industry association on Friday.
The country's gaming market had a total annual revenue of 350.8 billion yuan (US$49.8 billion), breaking the previous record of 325.8 billion yuan set last year. The figures were announced at the annual conference held by the China Audio-Video Digital Publishing Association in Shanghai.
The report said this growth was driven by a number of factors, including stronger policy support from governments, impressive performance in overseas markets, and the impact of technological innovation on efficiency.
The growth marks the third consecutive year of increases in video game sales and reflects the industry getting back on track after a period of regulatory readjustment.
In recent years, the Chinese government has softened its stance on approving video games. The State Press and Publication Administration, China's government agency that oversees online gaming, maintained a steady pace of license approvals throughout 2025, providing the predictability needed for long-term investments.
According to a report by research firm Newzoo, China is expected to overtake the United States in sales and become the world's largest video game market in 2025, with an estimated sales of US$53.2 billion. It predicted that global gaming revenue would increase 7.5% year-on-year to $197 billion.
