Game Development Outsourcing to be Worth Billions by 2010

Game Development Outsourcing to be Worth Billions by 2010

Game outsourcing is growing fast, and is projected to reach $2.5 Billion by 2010, with 40 percent of the cost spent developing games, according to Screendigest as reported by Wang Zhenghua in China Daily (courtesy: Play No Evil post)

Outsourcing firms have focused on China for two reasons: low cost (of course), but also the potential of the Chinese market.

Revenue from China's online gaming industry reached 6.5 billion yuan in 2006, surging 73 percent over a year earlier, and could quadruple by 2011, says IDC. The venture vulture capitalists are of course aware of this and are reportedly rushing in to see how they can cash in on this multi-billion $ opportunity.

China-made online games, with a 65 percent domestic market share and $20 million in export revenues last year, are beginning to break the traditional domination of South Korea and Japan.

Read the full report from here @ China Daily