It’s a great time to explore the Chinese games market

PocketGamer.biz spoke to MyGamez CEO Mikael Leinonen about the opportunities and challenges in China's lucrative games sector

The Pocket Gamer Connects Summit Shanghai takes place on July 30th.

In the build up to the event, we've been reaching out to speakers and local companies to get their views on China's games industry.

We caught up with MyGamez CEO and co-founder Mikael Leinonen about the evolution of the country's games sector and how, after years of tightening regulations, things might just be loosening up in the world's most lucrative market.

PocketGamer.biz: Could you tell us a bit about your company and what you do?

Mikael Leinonen: MyGamez is a games publishing and market access company focused on helping international mobile game developers succeed in China — one of the world’s most competitive and rewarding markets.

We’ve been in the game since 2013, and over the years we’ve helped launch and operate numerous Western mobile titles in China, reaching more than 700 million Chinese gamers.

Being a Finnish-Chinese company, our specialty lies in making the complex Chinese ecosystem navigable — from licensing and regulatory compliance to distribution, marketing, monetisation, localisation, and cultural adaptation.

We offer a unique co-publishing model that allows our partners to stay closely involved in their game's China operations, maintain control, and enjoy significantly higher margins. if you're a mobile game company looking to enter or grow in China, we’re your go-to team.

When looking to launch a game in China, what are some key things developers should keep in mind? And where are the biggest opportunities now in the country's games market? (e.g. platforms, genre, etc.)

It’s important to understand that China’s game market is a world of its own — with a distinct ecosystem, unique regulations, and highly competitive dynamics.

To scratch the surface: developers need a local publishing partner, a China-specific SKU with compliant tools and services, government publishing approvals, and localised operations. Most games also benefit significantly from UX design and live ops that align with Chinese user behaviour and expectations.

A great starting point for unpacking all of this is understanding the regulatory environment — and how it has shaped the entire ecosystem and influenced how local developers operate.

Events like the upcoming PGC Shanghai Summit and ChinaJoy are ideal for making the right industry connections and getting a clearer picture of what it takes to succeed in this unique market.

How would you assess China’s games scene at the moment and what makes it unique?

The common denominator across nearly every industry in China — including games — is the lightning-fast pace of development and innovation, and the incredible agility of Chinese companies in adapting to new conditions and building solutions quickly.

When we started MyGamez over a decade ago, game development in China still lagged behind what I had seen in the West. Fast-forward to today, and many of the world’s most impressive developers are based in China — and I believe we’ve only seeing the tip of the iceberg so far.

Chinese developers are incredibly driven. They have access to large pool of top talent and strong financial backing, and they operate in a massive, hyper-competitive domestic market that pushes constant innovation in game design, live ops, and marketing.

It’s this intense pressure that sharpens their edge. It’s an exciting space that continues to evolve at breakneck speed.
What opportunities do you see in China’s games industry?

With around 30% of global gaming revenue coming from China, the market represents one of the biggest growth opportunities available to successful overseas developers.

I often encourage studios to treat publishing in China like developing a whole new game: it requires proper resourcing, comes with some risk, but if done well, the upside can be massive. Compared to the effort needed to create an entirely new hit game, bringing an existing successful title to China often requires far fewer resources — and comes with a higher probability of success.

After several years of regulatory uncertainty, the environment has now stabilised. The approval process for publishing has become much faster and more transparent, making market entry more straightforward. For mobile games, we see great opportunities especially in less crowded casual and hyper-casual segments.

Another exciting space is the rapidly growing HTML5 mini games market, with platforms like WeChat and Douyin offering powerful distribution for instant-play games.

On the PC side, Steam’s large Chinese player base continues to offer a sizable — and relatively accessible — opportunity for developers.

Finally, influencer marketing is booming, and brand collaborations are emerging as a major trend. Developers that creatively engage with these channels can really stand out.

In short, it’s a great time to explore the Chinese market — especially with the right strategy and local expertise behind you.

What challenges does China’s games industry face?

Rising talent costs in major cities have significantly driven up production expenses, while at the same time users expectations for production quality, speed of content updates, and overall VIP treatment on every aspect keeps rising.

As a result, many companies are relocating to tier two and tier three cities in search of more cost-efficient operations.

In the short-term, the post-Covid economic slowdown has made it more difficult for new studios to raise capital. However, signs of recovery are emerging, and market confidence is gradually returning.

Another concern is the dominance of distribution platforms that also own the marketing channels. This creates an environment where platforms can exert considerable control over publisher margins, bordering on monopolistic behavior.

That said, growing competition among Android app stores and the rise of HTML5 mini games platforms like WeChat and Douyin could help balance the playing field and push fees down.

Developers and publishers in China are gaining global success across platforms and in the triple-A space. What’s driving this and what can companies outside of China learn from this?

The broader trend of Chinese publishers going global really took off after the regulatory turbulence that began in 2017. During the periods when it became difficult — or nearly impossible — to secure domestic publishing licenses, many Chinese companies found it faster and easier to publish their games overseas first.

What began as a necessity then turned into a strategic advantage for many companies. Early successes abroad, combined with intense competition in the domestic market, motivated many studios to focus on international growth.

Today, several leading Chinese companies build games specifically with global audiences in mind from day one.

Of course, going global isn’t without its own hurdles. Chinese developers face many of the same challenges that overseas studios encounter when entering China — from cultural adaptation to navigating unfamiliar tools, platforms, and marketing ecosystems.

The fact that so many have found success in major markets like Korea, Japan, and the West shows that it’s absolutely possible to create gaming experiences that resonate across cultural lines.

This should be encouraging for developers outside China: yes, entering the Chinese market takes effort, but it’s very doable. The key lies in choosing the right partners and treating the market as a major opportunity — not an afterthought.

What is your outlook for the sector? If we speak again in five years, where do you think China’s games market will be?

I believe China will be a global trendsetter in gaming, driving new innovations in design, monetisation, and player engagement.

Any company aiming for global leadership will need to be in China — both to compete and to learn from its incredible pace and creativity.

Get more insights into China's games market at the Pocket Gamer Connects Summit Shanghai on July 30th.

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