With overseas sales reaching USD 18.6 billion last year, China has established itself as the world’s gaming powerhouse. Heavy government regulation and widespread mobile phone use also make it the most unique gaming market in the world.
For foreign studios, the success of Black Myth: Wukong shows the potential of Chinese cultural elements in-game narratives. It also raises the bar for rivals entering the market, as expectations for quality and cultural relevance continue to grow.
While the massive scale of the Chinese player base points to the future of the gaming market, foreign companies may find it hard to establish themselves without insider help.
China’s gaming landscape: From Black Myth Wukong (黑悟空) to Genshin Impact
For a long time, China’s gaming market was synonymous with mobile-first, free-to-play titles. Yet the landscape is now shifting.
Black Myth: Wukong is drawn directly from the mythological tale Journey to the West. The delicate visuals and ambitious gameplay of the game signal its intent to compete in the high-budget PC and console “AAA” space. The game sold 10 million copies in its first three days, making it one of the fastest-selling games in history.
Similarly, Genshin Impact, a globally popular game, blends a fantastical world with subtle Chinese cultural elements. The game reached $1 billion on mobile in just 6 months and was the fastest game ever to reach $5 billion in mobile revenue.
What truly sets these games apart is their deep immersion in Chinese culture. Both feature narratives rooted in Chinese folklore, history, and art, yet presented in ways accessible to global audiences.
How local studios have evolved and are shaping global trends
The global gaming landscape was long dominated by Western and Japanese developers. For much of the 2010s, China’s market was led by giants like Tencent and NetEase. They mastered free-to-play mobile games heavy on microtransactions, catering to a smartphone-adopting population.
However, a new force has emerged from China. There’s a trend towards investing large budgets and skilled teams into fewer, more ambitious titles to achieve long-term engagement.
Companies like miHoYo, the developer of Genshin Impact, and Game Science, known for Black Myth: Wukong, have taken a different approach by building their own in-house game engines. For example, they have mastered real-time rendering to improve visual performance. They’ve also developed advanced systems for more refined character animation. There’s no doubt Chinese studios are pushing hard to keep up.
Key differences between local Chinese titles and foreign games
Strict regulations and censorship are the biggest differences. Local studios design with these rules in mind, often self-censoring to comply. Foreign games are made for global markets and face fewer content limits.
Cultural preferences also shape the market. Chinese games often feature traditional aesthetics and include more detailed interfaces. Foreign games tend to favor clean, minimal layouts.
Let’s not forget the infrastructure differences. Chinese games are built for fast mobile networks and integrate smoothly with local app stores and payment systems. Many foreign games come from PC or console roots and may lack social media and platform integration in China.
The unique Chinese gamer base
This can be understood through platform, genre, and preference.
Platform
High mobile phone penetration contributes to Chinese players’ preference for mobile gaming. Ubiquitous mobile payment systems like WeChat Pay and Alipay drive over 70% of the market’s revenue from mobile games. Chinese gamers are also accustomed to the free-to-play (F2P) model with in-app purchases (IAPs).
Genre
Chinese gamers are driven by competition and social interaction. Genres like MOBAs(Multiplayer Online Battle Arenas), Battle Royales, and MMORPGs (Massively Multiplayer Online Role-Playing Games) are popular.
Preference
Gamers resonate with Chinese cultural elements, which developers often weave into character designs, storylines, and music. When it comes to user interface. Chinese gamers normally prefer UIs that are more vibrant, feature-rich, and perhaps even “busy” by Western standards.
Barriers to entry for foreign game developers
To legally and successfully enter the Chinese market, foreign game developers face several significant hurdles.
Regulatory framework: game approvals, licensing, content restrictions
This ranks as the biggest hurdle. All games must go through a lengthy process to receive an ISBN license (game approval number) before publishing. An Internet Content Provider (ICP) certificate is also required for hosting websites or offering online services in China, including games with in-app purchases.
China has strict rules against gaming content and employs extensive online censorship. Games must avoid content deemed violent, politically sensitive, sexually explicit, or anything that distorts Chinese history or promotes “immorality.”
Other restrictions include, but are not limited to: homosexuality, polygamy, gambling, certain religions, and anything that “endangers national unity.”
Data localization and cybersecurity requirements
China has adopted the Cybersecurity Law (CSL), Data Security Law (DSL), and Personal Information Protection Law (PIPL), affecting network operators and data processors. These prioritize national security and social stability.
Consequently, “important data,” “sensitive personal information,” and “critical information infrastructure” must be stored on servers within mainland China. Games and their underlying platforms are also subject to cybersecurity reviews and assessments by Chinese authorities.
Why is it important to have a local ally?
Reason 1: legal requirement for publication
Foreign entities are prohibited from directly publishing or operating online PC or mobile games in China. Only games that are completely free to play might not strictly require an ISBN license.
Reason 2: content localization and censorship expertise
Successful localization requires adapting game content (narrative, characters, art style, UI, references, humor) to meet with local cultural preferences. Besides, local companies are experts at ensuring your game complies with China’s strict censorship rules. While policies can change rapidly (e.g., proposed rules being withdrawn), the main goal remains: to control cyberspace and ensure it serves national interests.
Differences between Chinese and Western gaming settings
Unlike the dominant Google Play Store and Apple App Store in the West, China’s mobile app market is fragmented with third-party app stores.
On PC platforms, the global versions of Steam, Epic Games Store, and GOG.com operate in a legal “gray area” in China. Although Tencent offers its official PC gaming platform, WeGame, many major Chinese developers (e.g., miHoYo and NetEase) distribute their PC games directly through their own launchers.
What foreign studios get right—and wrong—in China
Foreign studios could mistakenly view translation as full localization, neglecting other aspects crucial for success and failure.
Case study 1: a catastrophic misstep by Reversed Front: Bonfire (逆統戰：烽火)
Reversed Front: Bonfire is an alternate history strategy game. Players can choose among nine factions, including the Communist regime, battling for control of a fictionalized China. Despite offering a Communist-aligned path, the developer’s provocative remark and the game’s controversial depiction of the PRC led to its ban and legal warnings in Hong Kong.
The misstep:
The setting of civil conflict involving “separatist” regions fundamentally undermines the PRC’s claim to absolute, unified sovereignty.
Lessons learned:
Questioning the legitimacy of the CCP and challenging China’s territorial claims is an absolute red line. Even offering a “pro-Beijing” path is insufficient.
Case study 2: a huge success of Plants vs. Zombies (PvZ)
Plants vs. Zombies, a tower defense game by PopCap Games, was primarily a premium title in the West. For the Chinese market, it was redesigned as a free-to-play game on Tencent, featuring in-app purchases. Their Shanghai studio even created an expansion pack inspired by the classic novel “Journey to the West” to cater to Chinese players.
The right approach:
The Shanghai studio supports both deep localization and marketing operations. Its decision to partner with Tencent ensures faster access to the Chinese player base and maximizes marketing efficiency.
Lessons learned:
Instead of merely porting the Western version, the developer tailors its product and business model for the Chinese market. Local experts know how to deploy strategies that maximize marketing efficiency.
What it really takes to enter the Chinese gaming market
It cannot be overstated how important player demographics are when entering a local market. Yet, how can you achieve this without resorting to time-consuming and costly trial and error?
The answer is on-the-ground testing. This involves local teams playing the game, providing feedback, and identifying potential cultural missteps or content issues before anything goes wrong.
How does on-the-ground testing relate to infrastructure choices
Due to the Great Firewall, games must be hosted on servers within mainland China to operate legally and efficiently. Connecting to servers outside China often causes slow speeds and high latency.
Testing from different cities and ISPs lets developers experience real-world lag, packet loss, and connection issues—just like Chinese players would.
How does on-the-ground testing benefit navigating local app stores
China has multiple major app stores, including Tencent MyApp, Huawei AppGallery, and Xiaomi App Store. Regional and device-specific issues can block installations or payments.
Local testers can go through the entire process to spot and fix issues early, reducing drop-offs at the download or purchase stages.
How does on-the-ground testing make your marketing more efficient
According to iResearch, 70% of Chinese consumers follow influencer recommendations when making purchases. Each platform and influencer has its own style, audience, and expectations.
Local teams can test ad creatives on real users and offer quick feedback. They know which influencers fit your brand and how to tailor content for better results.
"Launch and forget": a guaranteed path to failure in China
China is flooded with both domestic and international games. If a game doesn’t continuously provide fresh content and address player feedback, it will be abandoned as players move on to more engaging alternatives.
Success requires more than just a strong launch. Studios must track local gaming trends and monitor competitors. This includes rolling out new game modes, adjusting progression systems, and adapting marketing messages to match the latest fads.
How GoClick China helps foreign game studios enter the Chinese market
GoClick China has helped dozens of clients enter the Chinese market. We understand that China is not just another market; it’s a completely different ecosystem. Our team bridges the gap between foreign studios and the local landscape.
We provide hands-on support at every stage of project realization. Our local experts help secure ISBN approval, build strong partnerships, and optimize gameplay for Chinese users.
China’s gaming market is constantly evolving. That’s why we stay engaged beyond launch, offering fast, flexible support to meet new challenges. We’re ready to be your long-term strategic partner in China.
Seizing the opportunity: why local insight is your ultimate power-up
Throughout this article, it is clear that the promising opportunities in China don’t come without costs. Success takes more than just a strong product, and foreign games can no longer rely on novelty alone. To compete, you need local relevance. If you team up with the right partners, you can create experiences that meet legal standards and truly connect with players.
Don’t leave your China strategy to chance. Contact us today to empower your game with local insight.
