China's Gaming Industry Revenue Hits Record 350b Yuan

China's gaming industry reached a historic milestone in 2025, with annual sales revenue surpassing 350 billion yuan (US$48.3 billion) for the first time. The surge, detailed in the China Game Industry Report released today, was fueled by an explosion in mini-program games, cross-platform play and double-digit growth in overseas markets.

According to the report released at the China Game Industry Annual Conference in Shanghai, the domestic market generated 350.79 billion yuan in actual sales revenue in 2025, a year-on-year increase of 7.68 percent. The player base also expanded to a record high of 683 million users.

The report attributes this robust performance to four key factors: a wave of high-quality new mobile titles with exceptional market performance; innovative gameplay updates and optimized operations for long-standing "evergreen" titles; mini-program game boom on social media apps; and multi-platform integration bringing increased accessibility.

Also this year, Chinese developers continued to strengthen their footprint abroad.

In 2025, self-developed games earned US$20.46 billion in overseas markets, jumping 10.23 percent annually. For the sixth consecutive year, international revenue exceeded the 100-billion-yuan mark.The United States (32.31 percent), Japan (16.35 percent) and South Korea (9.15 percent) remain the top destinations for Chinese gaming exports, accounting for nearly 60 percent of total overseas revenue.

Shanghai turns a global gaming hub

Shanghai has solidified its position as China's gaming capital, contributing nearly half of the nation's total gaming income. In 2025, the city's gaming revenue hit 170.7 billion yuan, up 9.5 percent.

Xuhui District has emerged as a particular powerhouse, generating 70 billion yuan in annual sales. The district is home to industry giants like miHoYo, developer of "Genshin Impact," Hypergryph and Lilith Games, and recently welcomed a new research center of NetEase on the West Bund.

To further bolster this ecosystem, Xuhui has unveiled the "Neo World" – a 1.9-kilometer metaverse-style district. This innovative corridor integrates the China Game Museum with commercial, cultural and sporting spaces. Local authorities also launched a dedicated service center and a new policy package offering up to 30 million yuan in financial support for gaming and esports enterprises.

Experts also predicted major trends, during the conference, that will define the industry in the coming year. They include continued mini-program game dominance, cross-platform proliferation a and market bifurcation, which means strong market demand for both heavyweight, high-budget AAA titles and ultra-lightweight casual games.

Recognizing the city's vital role, officials announced that Shanghai will remain the permanent host of the China Game Industry Annual Conference for the next five years.