The Chinese game industry has witnessed remarkable growth in recent years, with online free-to-play titles like Genshin Impact and Wuthering Waves captivating millions of players globally. Anticipation builds for upcoming releases such as Etheria: Restart, while the phenomenal success of Black Myth: Wukong—which sold 10 million copies within a week of its August 2024 launch and was awarded Game of the Year at the 2024 Steam Awards—has left industry insiders in awe. This surge in popularity is fueled by rising consumer incomes, enthusiastic developers, and strong governmental support, prompting inquiries into the factors driving this growth and the future trajectory of the industry.
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Historically, Chinese developers have been hesitant to delve into single-player games, primarily due to the immense challenges associated with premium production and the lucrative nature of free-to-play models. Simon Zhu, founder of the China Independent Game Alliance (CIGA), reflects on the evolution of this landscape, noting that the Legend of Sword and Fairy series, which debuted in 1995, marked a significant milestone in Chinese gaming history. Despite its popularity, rampant piracy hindered the growth of the single-player market until the online gaming boom of the 2000s shifted the focus toward free-to-play titles. It wasn’t until the PlayStation’s entry into the Chinese market in 2015 that single-player console games began to gain traction.
As the industry evolves, studios face the challenge of measuring success differently between single-player and free-to-play titles. The latter often allows for recovery from initial setbacks, while the former’s fate hinges on its launch day performance. Siyuan Xia, co-founder of Chengdu-based Leenzee Technology, emphasizes the need for teams to adapt their development cycles to enhance efficiency and manageability.
Experts recognize the opportunities presented by breakthrough titles, which have begun to attract a wider audience. Li Shen, former chief technology officer at Tencent Games China and Epic Games China, highlights that the success of Black Myth: Wukong has encouraged publishers to invest more in single-player projects. Other titles, such as S-Game’s Phantom Blade: Zero and Leenzee’s Wuchang: Fallen Feathers, aim to capitalize on this momentum, with the latter even showcasing elements of the rich cultural heritage of the Ming Dynasty.
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While Chinese game developers possess unique advantages, they also grapple with notable challenges. Zhu points out that their expertise in online free-to-play games positions them as global leaders in commercial design and operations, adept at monetization and user engagement. However, shortcomings in narrative quality and game design persist, stemming from limited industry experience and market insights.
Shen acknowledges that while China has achieved significant capabilities in mobile gaming and profitable domestic products, rising production costs and intense competition have made developers more conservative in their genre choices, often prioritizing polish over innovation. The disparity between Western and Chinese gaming industries is also evident in the organization of events. For instance, the Game Developers Conference (GDC) in the U.S. serves as a vital platform for networking and knowledge exchange, while similar events in China struggle with attendance and speaker engagement due to a nascent understanding of the industry.
The issue of crunch culture remains prevalent, with long hours often expected during project deadlines. Shen notes that some studios adopt a 9-9-6 schedule, reflecting a culture that normalizes overtime. While labor reforms are in progress, the competitive landscape continues to pressure employees. Xia mentions that at Leenzee, the company discourages overtime, viewing it as counterproductive, yet some team members still choose to stay late, driven by their emotional investment in projects like Wuchang.
Despite the growth in the industry, layoffs have not been uncommon, with many companies in Shanghai experiencing workforce reductions. However, the presence of a robust social safety net, including unemployment insurance and retraining programs, provides some level of support for affected employees.
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Regional policies play a crucial role in bolstering game development in China. Most games require licensing from the National Press and Publication Administration (NPPA), which involves content reviews for cultural sensitivity and technical compliance. Additionally, local governments often implement programs to support studios, such as tax breaks for cultural projects and grants for research and development.
Xia notes that the Sichuan Provincial Government has been particularly supportive of their work on Wuchang: Fallen Feathers, assisting in the identification of cultural heritage sites for digital preservation. Shen adds that initiatives may include mandates for integrating traditional themes into games recognized as vital to the ‘digital cultural industries,’ along with state-backed campaigns aimed at promoting games as cultural ambassadors.
Zhu highlights the establishment of tech parks in Shanghai, which provide affordable spaces for both large companies and startups, fostering a collaborative environment for innovation. While challenges remain, including a lack of experience in single-player game development and hesitance to risk day-one revenue, experts maintain a hopeful outlook. Rising incomes and an increasing demand for high-quality content are expected to propel growth in the Chinese gaming sector.
As Zhu emphasizes, the journey toward transforming the industry is a long-term endeavor that requires resilience and dedication. Xia encapsulates this sentiment, stating, “When everybody adds fuel, the flames rise high,” underscoring the collective effort needed to advance the industry and foster a vibrant future for game development in China.
