China’s Gaming IP Industry in 2024: From Powerhouses to New Horizons

In recent years, Intellectual Property (IP) has become the cornerstone of China’s entertainment industry. But no sector has embraced the concept more fully, or driven more economic value, than gaming. In 2024, Chinese gaming IP is not only thriving but is taking bold steps across new domains, generating a vibrant ecosystem that stretches far beyond the screen. This article explores the landscape, growth trajectory, challenges, and diverse opportunities for IP within China’s gaming industry, with insights derived from the latest Gamma Data report.

The Dominance of Game IPs in China’s Entertainment Market

The scale of gaming IPs within China is difficult to overstate. In 2024, the market’s top ten gaming products have alone accounted for more than 73% of the revenue share across the entertainment sector. This dominance is reflected in the behaviors of consumers, with more than 90% of users engaging with some form of IP product over the past year, and a substantial preference for game-based IP. This data suggests that the ties between the public and gaming IPs are robust and continually growing, positioning games as the leading driver of cultural content consumption in China.

What sets gaming IP apart from other forms of entertainment IP is its impressive commercialization capability. Compared to movies, literature, or animation, gaming IPs have consistently demonstrated superior potential for monetization. Among the surveyed entertainment products, users have shown the highest willingness to pay for gaming experiences. This ability to drive economic value has led the gaming sector to embrace IP as a core strategy, whether through original development or by licensing from international brands.

The Three Pillars of Gaming IP in China

In the 2024 report, Chinese gaming IP is categorized into three broad types: original Chinese game IPs, imported authorized IPs, and cross-domain IPs. Each of these types plays a distinct role in the growth and expansion of the industry.

1. Chinese Original Game IPs: Boldly Going Where Few Have Gone Before Original game IPs, those created and nurtured entirely within China, form the backbone of the industry. Titles like “Honor of Kings,” “Genshin Impact,” and “Naraka: Bladepoint” have achieved immense success, not just in China but on the global stage as well. These original IPs contributed nearly 50% of the overall market revenue for the first three quarters of 2024, solidifying their position as market leaders. The value of these IPs lies not only in their ability to generate direct revenue but also in their capacity to expand into derivative content such as novels, animations, and branded merchandise. One fascinating aspect of original IPs is the willingness of Chinese companies to invest deeply in cultivating them. Unlike licensed IPs, which come with built-in fan bases and recognition, original IPs must build their own reputations from the ground up. Despite this challenge, companies are allocating significant resources to establish these IPs, driven by the potential for higher returns and brand ownership. A key factor here is control—companies have full creative freedom in developing and expanding original IPs, which makes them more appealing for long-term investment. The report also highlights that original IPs excel in four key dimensions of value evaluation: user engagement, development potential, user loyalty, and payment potential. These dimensions indicate a strong future trajectory for original Chinese IPs as companies continue to innovate and adapt, ensuring sustained consumer interest and expanding the boundaries of what gaming IP can offer. A notable example of this trend is Lilith Games, founded in 2013 by former Tencent employees Wang Xinwen, Yuan Shuai, and Zhang Hao. The company disrupted the gaming industry with original titles like “Dota Legends” and “Allstar Heroes,” achieving significant success both domestically and internationally. Lilith Games’ strategic focus on global markets, original content, and ethical business practices has inspired a new wave of Chinese game developers to invest in and cultivate their own IPs.
2. Imported IPs: Riding on the Waves of Global Popularity Imported IPs, which include international franchises brought into China with local adaptations, have also played a pivotal role in the market. Iconic titles like “League of Legends Mobile” and “NBA 2K Online” are examples of imported IPs that have been successfully localized for the Chinese market. These games benefit from the existing popularity of their respective franchises and leverage their brand recognition to quickly capture the local market. In the first three quarters of 2024, imported IPs accounted for 44.1% of the total game market revenue, a noticeable increase from previous years. This growth is largely driven by popular franchises that come with a loyal global fanbase and substantial pre-launch hype, which leads to significant market traction upon release in China. However, the report also highlights disparities among imported IPs in terms of value generation. The degree of control that Chinese operators have over these IPs often determines their success. IPs where the domestic team has deep involvement in game development, marketing, and community engagement tend to perform better. On the other hand, some imported IPs struggle when there is less creative control or freedom in localization, leading to a diminished brand impact and user base retention.
3. Cross-Domain IPs: Bridging Games with Literature, Animation, and Film Cross-domain IPs represent an increasingly popular trend where games are developed from existing content in other media, such as literature, film, or anime. Well-known examples include “Harry Potter: Magic Awakened” and “The King’s Avatar,” both of which drew upon rich source materials from other entertainment sectors. In the first three quarters of 2024, cross-domain IPs contributed 7.7% of gaming revenue, making them the smallest but also the most diverse and experimental segment of the IP market. This approach leverages pre-existing narratives, worlds, and characters, creating a ready-made fan base that is already invested in the IP. The strategy behind cross-domain adaptations is to capitalize on the emotional and narrative connections users have with the original work, deepening their engagement with the game. As content production in other fields, such as cinema and literature, recovers post-pandemic, the supply of high-value IP for game adaptations is expected to increase, giving this category potential for accelerated growth.

User Behavior and IP Commercialization

Understanding user preferences is critical to any successful IP strategy, and the report provides extensive data on how users interact with gaming IPs in China. A key finding is that a majority of users have a strong inclination toward products associated with gaming IPs, and their willingness to engage with derivative content is at an all-time high. Over 70% of surveyed users had purchased IP-related products such as merchandise, while others showed strong interest in content such as game-related animations and novels.

Interestingly, users were most likely to pay for game IPs that offered rich narrative content or multiplayer engagement. This explains the success of games like “Genshin Impact,” which combines a compelling story with exploration-based gameplay. Users are looking for IPs that not only entertain but also immerse them in a well-crafted world, encouraging the purchase of derivative products like figures, posters, and clothing.

Moreover, the survey results indicate that companies focusing on cross-platform engagement—such as collaborations between gaming IPs and film, animation, or literature—stand

to benefit the most. The ability of an IP to span different forms of media not only strengthens the brand but also enhances user loyalty and drives new revenue streams.

The Role of Derivative Content and Monetization Strategies

The development of derivative content remains a core pillar of value creation in the gaming IP market. Different types of content—ranging from spin-off games to animated series—are essential in sustaining user interest and broadening the market reach of game IPs. According to the report, derivative content is highly valued by consumers, with animated series and comics being particularly popular among younger audiences.

The commercialization strategies employed by gaming companies in China are also evolving. Leading companies have developed sophisticated approaches to drive revenue from IPs. These strategies include the sale of physical merchandise, cross-promotional deals, digital collectibles, and branded events. Notably, the report reveals that over 50% of the revenue generated by the top gaming IPs comes from non-game products—an impressive figure that underscores the importance of comprehensive IP monetization strategies.

Events, both online and offline, also play a crucial role in enhancing the value of gaming IPs. Nearly 75% of users reported attending or wanting to attend IP-related events, including online tournaments, fan meetups, and conventions. Companies are increasingly tapping into this trend by organizing large-scale events that connect fans, showcase new products, and celebrate the IP culture. These events not only drive immediate revenue but also cultivate a sense of community, enhancing user loyalty.

Looking Forward: Challenges and Opportunities

As Chinese game IPs continue to gain traction, several challenges remain on the horizon. The competition within the IP space is fierce, both locally and globally. Original Chinese IPs, while showing great promise, face challenges in capturing overseas markets dominated by established franchises. On the other hand, imported IPs must find the right balance in localization to appeal to Chinese audiences without losing the essence of the original content.

Yet, the opportunities are abundant. The report highlights a growing trend of collaboration between different sectors of the entertainment industry. Cross-domain partnerships, such as those between game developers and film studios or music producers, are becoming more common and are expected to increase the cultural impact of game IPs. As users seek richer, multi-layered entertainment experiences, the companies that can best integrate gaming with other media will stand to gain significantly.

Another promising area is the rise of virtual merchandise and in-game collectibles. As the concept of digital ownership grows—driven in part by blockchain technologies—Chinese gaming companies are experimenting with virtual items that provide users with exclusive, collectible content. This aligns well with user preferences, as more players show interest in customizing their in-game experiences and owning a piece of the digital worlds they enjoy.

Conclusion

The 2024 Chinese Gaming IP Development Report paints a vivid picture of an industry in transition—a sector that is rapidly evolving to meet the changing demands of users while exploring bold new ways to monetize intellectual property. The game IP market in China is a testament to the power of interactive storytelling and the potential of cross-media integration, with original creations like “Genshin Impact” setting the benchmark for both local and international success.

As gaming becomes an ever-more central part of global entertainment culture, China’s approach to developing and commercializing game IPs offers valuable insights. By leveraging original creativity, tapping into existing global phenomena, and crossing over into other entertainment fields, the Chinese gaming industry has carved out a distinct and dynamic role for itself in the worldwide market. As we look ahead, the interplay between these three IP categories—original, imported, and cross-domain—will undoubtedly continue to shape the future of gaming, not just in China, but across the globe.