According to the China International Digital Interactive Entertainment Seminar, which closed on Tuesday, the country's total online game revenue may reach 3.6 billion yuan (US$435 million) this year, up 100 percent on last year.

Internet Research Report--Online Game (2004) reveals that the size of the online game market is rapidly increasing. Currently, there are nearly 300 producers, 175 games and nearly 20 million users. China has become one of most important and attractive online game markets in the world.

The NASDAQ listed Shanda Company leads producers with a 46 percent market share. Its revenue in 2003 was 650 million yuan (US$78 million) and is expected to reach 1.6 billion yuan (US$193 million) this year.

Another NASAQ listed Internet portal, NetEase, ranks second in terms of revenue, with a market share of 17 percent. NetEase's revenue this year is expected to be 600 million yuan (US$72 million). Other leading producers include Shanghai The9 Co. Ltd, Optisp Communications, Outgame and Kingsoft.

Domestic producers face challenges despite the huge market; only 15 percent of them earn profits, while the other 85 percent keep operations or even lose money.

Experts attending the seminar pointed out that China's market will face reshuffles over the next two years. Leading firms are expected to increase their market share, while smaller ones will fall by the wayside.

(China.org.cn November 11, 2004)