China's domestic game market generated 350.79 billion yuan ($49.8 billion) in 2025 sales revenue, a 7.68 percent year-on-year increase that set a record for the segment, the China Audio-video and Digital Publishing Association (CADPA) reported on December 19 at the 2025 China Game Industry Annual Conference in Shanghai.

The user base reached 683 million, up 1.35 percent year-on-year and also a historic high, according to CADPA's 2025 China Game Industry Annual Report, released at the three-day conference co-hosted with the Xuhui district government at West Bund.

What powered the domestic growth?

Domestically developed games delivered the strongest gain. They pulled 291.1 billion yuan of revenue, up 11.64 percent year-on-year, outpacing the overall market by nearly four percentage points. Mobile kept its dominant position: 257.08 billion yuan in sales, a 7.92 percent increase, equivalent to 73.29 percent of total domestic revenue.

CADPA first vice-chairman Zhang Yijun framed the year as a pivot away from volume. "In 2025, China's game industry demonstrated robust growth, innovation and a shift from scale to quality," Zhang said.

How did exports perform?

Chinese publishers generated $20.46 billion in overseas sales, up 10.23 percent year-on-year. That figure stayed above 100 billion yuan for the sixth straight year. The United States, Japan and South Korea remained the top three destinations, while CADPA flagged continued expansion in Latin America and the Middle East.

CADPA chairman Sun Shoushan tied international revenue to a policy-led cultural mandate. "Games are a vital medium for sharing Chinese culture globally, serving as a cultural bridge," Sun said. "We must uphold our cultural roots and strengthen the dual drive of technology and culture, transforming games into a 'modern classic' that carries civilization, preserves culture and empowers innovation."

Fudan University senior professor Ge Jianxiong pointed to China's historical archive as a structural advantage for IP work, arguing cultural exchange will define the next wave of internationally recognized Chinese titles.

Where is women's gaming heading?

A women-oriented games report, also released at the conference, identified the segment as one of the fastest-growing categories. Deputy secretary-general Tang Jiajun said the cohort combines "significant commercial potential" with cultural pull, integrating traditional Chinese aesthetics to attract younger female players. CADPA withheld headline revenue for the segment in the materials distributed to press, leaving per-title and per-platform breakdown questions open for the next reporting cycle.

What did the minor protection report say?

Tang also presented a 2025 progress report on minor protection, noting 209 million Chinese internet users aged 19 or below had registered by June 2025. He called for reinforced family education around playtime and spending, on top of the curfew and spending caps Chinese platforms already enforce on under-18 accounts. For studios, the dataset anchors the size of the audience their compliance work targets in 2026.

What changes for studios — and what to watch next?

Sun Shoushan flagged two structural headwinds he wants the sector to address collectively: rising development budgets and intensifying global competition, particularly in jurisdictions that now regulate Chinese content directly. He urged cross-studio cooperation on cost discipline and called for stronger talent pipelines, framing the talent question as decisive for sustaining export growth.

Whether the 10.23 percent overseas growth rate holds into 2026 will depend on how those cost and regulatory pressures land over the next twelve months, and on whether the domestic pipeline — currently 7.68 percent on revenue and 11.64 percent for home-grown titles — can sustain the same pace against a maturing user base. The next China Game Industry Annual Report will provide the first verdict.