China is the most populous online gaming market globally, with 120 million avid gamers. Playing games online has become so popular that even the almighty Communist Party of China has given up fighting it and has started creating its own games that show the population how to be better citizens under a socialist regime.
Business opportunities in such a lucrative market are huge. Technology research firm Strategy Analytics recently calculated that the global online gaming market yielded $12 billion (£8 billion) in revenue in 2012, up from $5.2 billion (£3.5 billion) five years ago. It also estimated that the total annual revenue will reach about $15 billion (£10 billion) by the end of this year, with China accounting for the more than half of this, at about $8 billion (£5.4 billion).
The biggest player in the market is Shenzhen-based Tencent Holdings Ltd, which holds a market share of about 40%. The company also made a move on the international market by acquiring about 48% of US-based Epic Games in 2012. Epic produces several popular series, including Gears of War and Infinity Blade.