Niko Partners: Revenue for Chinese Browser-Based Games Will Grow 41% This Year

Browser-based casual (and hardcore) gaming is big in China, and it’s only growing. Research firm Niko partners says revenue for browser-based games will increase by 41 percent in 2012. The company released that prediction as part of a new report that details Niko’s predictions for the casual gaming industry’s further growth in China. The firm says that casual/social gaming will continue to grow and broaden the demographic that plays games in the country. If you’re interested, the full report can be yours for the low, low price of $3,500.

Of course, it’s no surprise to hear that analysts expect China’s casual web games market to continue its rapid expansion, but a word of caution to startups thinking about diving into this market: be aware that it’s extremely fractured. The low barrier of entry compared to traditional games means that lots of people have gotten into casual gaming, and even in a growth market, the truth about startups is always the same: most of them will ultimately fail.

If you are looking at this market, though, pay attention to the demographic expansion. As China’s web user numbers grow, new demographics are getting online, and some of them may be looking for a gaming experience that’s targeted more directly at them. Is there an opening for niche-casual games in China’s web gaming market? I’m no expert, but I’d say it’s an area that’s definitely worth looking at for anyone considering a potential gaming startup.

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