ReportNiko Partners
Asia Spotlight Report: The Impact of COVID-19 on China’s Video Game Market in Q1 2020
1 Jan 202021 pages~18 min full read
China’s video game revenue grew by approximately 30% in Q1 2020 compared to Q1 2019, fueled by increased engagement during the Lunar New Year holiday.
See it on page 2Mobile and PC gaming saw significant spikes in both engagement and spending, with 97% of mobile gamers and 94.6% of PC gamers reporting increased play time.
See it on page 14Casual mobile games experienced a surge in popularity, recording 3 to 4 times their usual monthly visit volume during the lockdown period.
See it on page 3The nationwide closure of internet cafés permanently displaced 115 million regular users, with 57% of those gamers indicating they would not return to the venue model.
See it on page 5While consumer spending on games rose, advertising revenue declined as advertisers reduced budgets and filled fewer ad slots, negatively impacting smaller titles.
See it on page 3Pandemic-driven behavioral shifts included 75% of gamers trying new platforms and 39.7% of users engaging in game streaming for the first time.
See it on page 15Console gaming saw demand for titles like Animal Crossing: New Horizons and Ring Fit Adventure, though growth was constrained by supply chain disruptions.
See it on page 10The report examines how the COVID‑19 lockdowns in China during Q1 2020 altered gaming behaviour, revenue, and industry dynamics. It finds that overall game revenues rose by roughly 30 % compared with Q1 2019, driven largely by a surge in mobile and PC play during the Lunar New Year holiday. An April 2020 survey of 1,057 Chinese gamers shows that 97 % spent more mobile‑gaming hours and 81.6 % increased spending, while 94.6 % of PC gamers logged more time and 76.3 % spent more on PC titles. Mobile in‑app purchases grew sharply, with casual games seeing 3–4 times the usual monthly visits. However, ad revenue fell as advertisers cut spend and fewer ad slots were filled, hurting smaller titles.
Internet cafés closed nationwide, eliminating 115 million regular users; 57 % of former café gamers said they would not return. Console sales benefited from high‑profile titles such as *Animal Crossing: New Horizons* and *Ring Fit Adventure*, but supply chain disruptions delayed new console launches. Esports shifted online, with major leagues resuming within a month, yet concerns over cheating and bandwidth persisted.
The survey also reveals behavioural shifts: 75 % of respondents tried new platforms, 63 % reported increased household gaming, and 39.7 % streamed for the first time. Overall, the pandemic accelerated digital consumption while exposing vulnerabilities in advertising, physical venues, and supply chains.
