The Chinese games market generated approximately $51.8bn in revenue in 2025, according to a new report from market researcher Niko Partners — more than five times the $8.76bn UK games market UKIE tallied in the same period.

What does Niko Partners project for 2026 and beyond?

The report forecasts 4 percent growth in 2026 to $53.9bn, with the market reaching $59.8bn by 2030. Niko Partners attributes the trajectory to better-than-expected performance across both new releases and evergreen live-service titles, naming Genshin Impact as an example of the latter category. Where Winds Meet, a 2025 MMO, crossed 2 million global players within 24 hours of launch.

How are Chinese consumers spending?

Niko Partners' 2025 figures show 46.5 percent of Chinese gamers engaged with esports to some degree, a share it expects to climb to 51.3 percent in 2026. 80 percent of players have played a mini-game — Niko Partners' term for browser and similar browser-style formats that require no install — and mini-games already represent roughly 20 percent of total consumer spend in the market.

Where does generative AI fit?

39 percent of Chinese gamers express interest in generative AI's integration into games, and 60 percent of Chinese studios reported using gen AI tools in development during 2025. The adoption rate sits in contrast to Western audiences, where concerns around artistic integrity, copyright and output quality have slowed uptake. Niko Partners lists generative AI integration, growth in niche and underserved genres, expanded out-of-app monetisation, rising domestic and international spending, and a "more favourable regulatory environment" as the principal growth levers for the rest of the decade. The regulatory shift, the firm argues, should enable international publishers to access China through storefronts such as Steam.

What signals came from developers at Gamescom?

Over 60 Chinese-developed titles appeared at Gamescom, with Phantom Blade Zero, A Whisper of Fall: Jinyiwei, Sea of Remnants and Showa: American Story among the higher-profile showcases. The footprint marks a measurable step up from the prior year and continues the industry read-through that began with Black Myth: Wukong's 2024 release.

The next data point worth watching is Niko Partners' 2026 interim update, alongside the publishing and SKU decisions attached to the slate of Chinese-developed titles targeting Western release windows through 2027.

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Also in the newsroom: Final Fantasy 7 Revelation on physical media

Naoki Hamaguchi, director of Final Fantasy 7 Revelation, told Radio Times he "did [his] best" to push for a full physical disc release during internal and first-party negotiations. The game launches on Nintendo Switch 2, PC, PS5 and Xbox Series X/S on 8 April 2027, but the included disc functions as a key disc containing only the opening of the game; the bulk of the experience still requires a download.

"Personally, obviously, I bought lots of physical editions of games as a child," Hamaguchi said. "Sometimes I buy digital editions of games, but if I'm particularly attached to a title, I want to get the physical version."

Hamaguchi framed SKU and packaging decisions as "the responsibility of the publishing team," describing his own authority as "somewhat limited" beyond game content. On the broader trajectory he added: "I can see a world in the not-too-distant future where physical media is essentially disc-less," reduced to a code printed on paper inside the box. Sony announced on 1 July that it will end PlayStation disc production effective January 2028, leaving retail PS5 SKUs digital-only at retail from that point forward.