In the 21st century, as various industries are shaped by advances in information and digital technology, games offer more than just an escape from the mundane. They provide visual stimulation, imaginative realms, immersive experiences and a sense of community that connects people across continents. 

In the digital landscape of the gaming world, players can go on virtual dates with idealized digital lovers, battle monstrous non-player characters using their chosen weapons, explore exciting destinations within seconds and celebrate their accomplishments with fellow players. Ultimately, the gaming world allows individuals to transcend time and space, completing tasks and experiencing adventures that would be impossible in the real world.

"Over the past year, China's game industry has seen breakthrough achievements. With steady revenue growth in the domestic market and the expansion of the international market, we are looking at infinite possibilities—and a bright future," Zhang Yijun, First Vice Chairman of the China Audio-Video and Digital Publishing Association (CADPA) and head of the CADPA Game Committee, said at the China Game Industry Annual Conference held in Beijing on December 13, 2024.

The annual conference is the industry's biggest event of the year. Its 2024 edition focused on topics pivotal to the future development of China's game industry, including the intersection of gaming and the digital economy, platform development, overseas promotion and localization efforts, the integration of gaming with the cultural and tourism sectors, as well as updates on social responsibility rules and the latest laws and regulations. 

"Chinese game manufacturers are using innovative technologies, creative and original characters and designs, and rich cultural connotations to bring charming experiences and more diverse content to global players," Zhang added.

According to the 2024 China Game Industry Report issued at the conference, the annual sales revenue of the domestic game market reached a record-breaking 325.78 billion yuan ($44 billion), a year-on-year increase of 7.53 percent. The number of game users last year reached 674 million, a year-on-year increase of 0.94 percent, resulting in another record high.

Digital heritage 

Game developers have also contributed to the growth of the international game market. 

Sales revenue of games wholly developed by Chinese companies reached more than $18.55 billion in overseas markets, a year-on-year increase of 13.39 percent.

As the conference noted, what has brought domestically developed games into the global spotlight is the rich Chinese cultural elements embedded in them, coupled with the effective localization and promotional strategies employed by the companies.

"Culture is a foundational element in the globalization process of China's game industry. Companies should not only focus on complicated game design and technology, but also include cultural connotations that can transcend cultural differences and resonate with global players," Zhang said.

For example, Black Myth: Wukong, an action game developed by Game Science studio, topped the sales charts in 29 countries and regions on its debut day (August 20, 2024) and went on to win prestigious international awards, including The Game Awards 2024 and the Golden Joystick Awards. The game is inspired by the story of Sun Wukong, the Monkey King, a legendary figure from the Chinese classical novel Journey to the West. Sun is a beloved character in Chinese folklore and has appeared in different adaptations of the novel throughout the years. In Black Myth: Wukong, players can embody this iconic hero as they journey through a mythical version of ancient China.

Similarly, AFK Journey, an idle card game developed by Shanghai Lilith Technology Corp., draws inspiration from the Altay region in Xinjiang Uygur Autonomous Region. Altay, known for its breathtaking natural beauty, is one of China's top tourist destinations, offering picturesque mountains, grasslands and lakes.

On its first day of testing, the game topped the iOS free charts in the U.S., Canada and the United Kingdom, and entered the Top 50 grossing charts in nearly 60 countries and regions worldwide. To date, AFK Journey has surpassed 15 million global downloads and was awarded Google Play's Best Game of the Year 2024.

Apart from literature-inspired characters and landscapes, other popular games that incorporate traditional Chinese cultural elements focus on China's intangible cultural heritage and art masterpieces.

Honor of Kings, for instance, seamlessly integrates the clothing patterns of characters inspired by Dunhuang, a city in Gansu Province. Dunhuang is renowned for its rich historical and cultural heritage, and especially for its ancient Buddhist cave temples and murals.

In Genshin Impact, global players can experience traditional Chinese festive customs, such as releasing sky lanterns and solving lantern riddles. These customs are celebrated during the Lantern Festival, an important cultural event in Chinese New Year celebrations that falls on the 15th day of the first lunisolar month.

The Beautiful Dream, then, brings the artistic style and themes of famous Kunqu Opera The Peony Pavilion into the digital realm. The Peony Pavilion is a classic Chinese drama known for its beautiful portrayal of love and longing, winning the hearts of hundreds of thousands of fans of traditional Chinese theater.

In addition to celebrating the success of domestically developed games, the conference also delved into these case studies, analyzing the reasons behind the success of these games on the global stage.

"While we are promoting and localizing Chinese games in other countries, we should build bridges across national borders, ethnicities and cultures, with thorough understanding of the local culture. It is only through integration and communication with local cultures that we can share our cherished and beloved tradition and values," Sun Shoushan, Chairman of the CADPA, said at the conference.

Clear directions 

The conference also highlighted supportive policies aimed at fostering the development of the game industry in the coming years.

One such effort is the High-Quality Online Game Publishing Initiative, launched by the National Press and Publication Administration (NPPA) in October 2023. This program was designed to support the promotion and publication of domestically developed games by providing financial assistance and streamlining administrative processes.

In 2024, the NPPA licensed 1,170 domestic games under the initiative, up from 978 in 2023. This year, the initiative remains in effect.

While games offer many benefits to individuals and society, it is still necessary to strengthen regulations around the time and money spent on games, particularly for underage players who may be unable to manage their behavior responsibly.

Lin Ruijie, deputy head of the Internet and software department of the CTTL Terminal labs at the China Academy of Information and Communications Technology, stressed that the protection of minors will rely more on AI identification technology in the future.

"By applying the latest AI and machine-learning algorithms, the system will be able to identify the facial expressions, behaviors and needs of adolescents more

accurately, thereby providing more targeted protection," Lin said at a symposium on the compliance management and high-quality development of the game industry held in Beijing on December 26, 2024.

In August 2021, the NPPA introduced new regulations aimed at preventing underage addiction to online games. These rules imposed limits on both the amount of time minors can spend playing games and the amount of money that can be spent from accounts registered with adolescent information. Following this announcement, game companies swiftly upgraded their facial recognition and monitoring systems to comply with the new rules. 

"We have implemented a comprehensive review mechanism and have commissioned a third-party agency to conduct privacy assessments, ensuring that our games fully comply with related laws and regulations regarding the collection, storage and use of users' personal information. At the same time, strict restrictions will be placed on the duration and time slots for adolescent game accounts," Li Chengwei, Vice President of Shenzhen Zengame Technology Co. Ltd. in Shenzhen, Guangdong Province, said at the symposium. 

Copyedited by Elsbeth van Paridon 

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