China’s video game sales reach record in 2025 amid overseas expansion, AI investment
In 2025, China is expected to surpass the US as the world’s largest gaming market, with revenue of US$53.2 billion, according to Newzoo
China’s video game industry revenue grew 7.7 per cent to a new high this year, as domestic titles from the likes of Tencent Holdings and NetEase continued to expand globally and bets on artificial intelligence paid off, according to data released on Friday by the country’s semi-official gaming industry association.
The country’s gaming market posted total sales of 350.8 billion yuan (US$49.8 billion) for the year, breaking the previous record of 325.8 billion yuan set last year. The numbers were released by the China Audio-Video and Digital Publishing Association at its annual conference in Shanghai.
The growth was driven by a number of factors including increased policy support from the government, extraordinary performances in overseas markets, as well as the impact from technology innovations on efficiency, according to the report.
The growth, which marked the third consecutive year of revenue increases for video game sales, reflected how the industry had navigated a period of regulatory recalibration to get back on track.
In recent years, Beijing has softened its stance on video game approvals. Throughout 2025, the National Press and Publication Administration, the Chinese agency overseeing online games, maintained a steady cadence of license approvals, providing the predictability necessary for long-term investment.
In 2025, China was also expected to surpass the US to become the world’s largest video gaming market by sales, with estimated revenue of US$53.2 billion, according to a report from research firm Newzoo. It expected global gaming revenue to increase by 7.5 per cent year on year to US$197 billion.