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The founder of Values Value and co-founder of InGame Job is Tanja Loktionova.
Chinese-owned mobile games now dominate the top-grossing charts globally. In February 2026, AppMagic reported that seven out of the top 15 highest-grossing mobile games were Chinese titles, collectively earning $668 million from in-app purchases in just one month.
While Western publishers like Playrix, King, Roblox Corporation, and Supercell still hold top positions worldwide, their success is largely attributed to existing titles. In 2025, no new releases from Western studios made it to the top 15 revenue-generating mobile games in Tier-1 Western markets.
In 2025, Chinese games amassed $20.5 billion in overseas markets, marking the tenth consecutive year of growth and the second year of double-digit expansion. This achievement was the result of deliberate strategies and systematic efforts rather than mere coincidence or market size.
The Emergence of Chinese Dominance
The foundation of Chinese dominance in the gaming industry was laid in the early 2000s when widespread PC piracy in China led developers to focus on free-to-play models. By the time mobile gaming gained popularity globally, China had a significant advantage in understanding user behavior and monetization strategies, shaping their approach to operations even today.
Initially dominating the domestic market, Chinese studios capitalized on a user base of 772 million gamers in 2025, with mobile gaming contributing over 73% of the total revenue of approximately $50.1 billion, as reported by China Daily. The competitive landscape, advanced monetization techniques, and organizational structures in China set a high standard that Western studios have yet to match.
Expanding beyond their borders, Chinese companies initially excelled in strategy games, particularly 4X titles like Rise of Kingdoms and Game of Empires, attracting a global audience with their effective monetization strategies and operational discipline. Nearly half of the top 100 Chinese-made mobile games by overseas revenue in 2025 were strategy games.
Following their success in strategy games, Chinese developers ventured into mid-core games and are now encroaching on casual and hybrid-casual genres traditionally dominated by Western companies.
“Western companies lack the structural advantages that Chinese firms possess, making competition on the same scale strategically unwise.”
Chinese companies benefit from structural advantages such as concentrated talent pools, a culture conducive to shift-based work, disciplined workforce, lower labor costs at scale, and organizational flexibility to accommodate large teams and rapid changes. These factors give them a competitive edge that Western companies struggle to match.
The Importance of Team Dynamics
Chinese talent remains predominantly within China due to the vast domestic market, internal career growth opportunities, and cultural barriers limiting outward mobility. This circulation of talent keeps knowledge internal, fostering competitive advantages that compound over time.
Accessing this talent from outside China is challenging and often necessitates acquisitions, equity arrangements, or complete studio acquisitions. Chinese companies prioritize acquiring functional organizational units rather than individual talents, recognizing the value of team dynamics.
“Chinese acquirers understand that organizational capabilities reside in teams, not individuals.”
Some major Chinese companies have attempted to relocate entire Western and Eastern European studios to China, recognizing the importance of preserving organizational capabilities within teams. This strategic approach underscores the significance of team synergy in achieving success.
Cultural Adaptation
Chinese companies strategically addressed cultural mismatches, particularly in disciplines like art direction, UI design, and visual language. A notable example is Skymoons, a mobile game developer based in Chengdu, which expanded into Western markets by establishing art studios in Kyiv, Ukraine, and Edinburgh, Scotland, to leverage Western visual expertise.
These expansions were not solely based on cost considerations but aimed at integrating Western visual sensibilities into Chinese production pipelines, emphasizing cultural adaptation over simple outsourcing.
In 2018, iQIYI acquired Skymoons for $190 million, with potential growth to $300 million, attributing considerable value to the Kyiv and Edinburgh operations. This move exemplifies the strategic importance of incorporating diverse cultural perspectives in game development.
Building a Learning Ecosystem
In addition to acquisitions and studio expansions, Chinese companies implemented a strategic approach of acquiring expertise through consulting and advisory networks, targeting Western specialists in various gaming disciplines. This systematic outreach aimed to enhance internal capabilities by integrating external expertise.
Chinese companies sought expertise in game design, art direction, product development, and monetization strategies, recognizing the importance of specialized skills in creating successful games. By internalizing Western expertise, Chinese firms aimed to strengthen their competitive position in the global market.
Strategic Focus on Casual Games
Chinese companies have strategically positioned themselves to enter the casual and hybrid-casual gaming market, leveraging their operational efficiency and organizational structure to excel in these demanding product categories. With a focus on live-ops events and player retention, Chinese publishers have significantly increased their global market share in Tier-1 Western markets.
“Chinese publishers are investing heavily in acquiring players and expanding their market share in Western markets.”
Chinese publishers now account for a substantial portion of global mobile user acquisition spending, with a notable increase in market share in key Western markets. This deliberate move into casual gaming demonstrates the systematic preparation of Chinese companies to challenge Western dominance in this segment.
Adapting to AI Advancements
Chinese studios have embraced AI technologies, with over 80% of developers using AI across various aspects of game development. By leveraging AI tools, Chinese companies can streamline development processes, reduce costs, and scale content creation at unprecedented speeds.
“Western companies must focus on talent density and creative precision to compete effectively against Chinese firms.”
With the integration of AI technologies, Chinese studios are further enhancing their operational efficiency, posing a significant challenge to Western counterparts. Western companies must prioritize talent density and creative ingenuity to differentiate their offerings and compete in the evolving gaming landscape.
Looking Ahead
Chinese companies have systematically built a robust system for creating successful mobile games, expanding from domestic dominance to global market penetration. Western companies face an uphill battle in competing directly with Chinese firms and must innovate to carve out a unique position in the industry.
The future success of Western mobile game developers hinges on their ability to maximize talent efficiency, make strategic decisions swiftly, and foster individual creativity. As Chinese companies continue to excel through organizational scale, Western companies must focus on precision and innovation to remain competitive in the evolving gaming industry.