China’s Internet cafes still crucial to online video game growth
China’s Internet cafes are still critical to the growth of the online video game industry in that country, according to a report by market researcher Niko Partners.
Internet cafes will account for about 40 percent of the $2.5 billion in revenue generated by online game operators in 2008 in China. There are an estimated 21.9 million computers installed in 185,000 Internet cafes in the country. Overall, Internet cafes generate $20 billion in revenue a year.
While gamers in big cities such as Shanghai and Beijing often have their own home computers, many of them still visit the cafes to socialize and compete with friends. In smaller cities and rural areas, the cafes serve as the only place where gamers can play.
The firm looked at 507 Internet cafes in 18 cities throughout China and it surveyed more than 500 gamers. About 71,000 of the cafes are unlicensed.
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About the Author, Dean Takahashi
Dean is lead writer for GamesBeat at VentureBeat. He covers video games, security, chips and a variety of other subjects. Dean previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox 360 Uncloaked. Follow him on Twitter at @deantak, and follow VentureBeat on Twitter at @venturebeat.