China’s video game industry posted a 10.3% decline in 2022 sales to RMB 265.9 billion ($39 billion), the first drop in five years, according to a report by the China Game Industry Annual Conference, reports Caixin. Total users dropped 0.33% in 2022 to 664 million, the report said. Sales of mobile games shrank 14.4% year-on-year to RMB 193 billion.
Sales weakened as the pandemic impeded new product development and the slowing economy affected companies’ financing and users’ spending, according to the report. Rising competition overseas also hurt Chinese game companies, it said.
According to a separate report by the conference, Chinese game developers’ overseas sales plunged 3.7% in 2022 to $17.3 billion, the first annual drop since 2018.