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January 12, 2010

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Income of online games to double

THE growth rate of China's online game industry slowed last year but the industry revenue is still expected to double in the next three years, thanks to online social games and mobile games, a Shanghai-based research firm said.

In 2009, the industry revenue totaled 27.1 billion yuan (US$3.98 billion), an annual 30.2 percent jump, according to iResearch Inc, a local Internet consulting firm. But in past years the growth rate surpassed more than 50 percent annually.

There were 60 million to 70 million active online gamers in 2009, about a fifth of China's total Internet users.

Export revenue of online games was 830 million yuan in 2009, 38.3 percent growth year on year, according to iResearch, which added that China's online gaming revenue is set to double in the next three years.

Traditional MMORPG (massive multiple online role playing games) like the World of WarCraft and social games provided by Kaixin001.com, which is regarded as Facebook in China, will continue to drive up the game revenue, analysts said.

The other gold mine for generating income is from mobile phone-based games. China Mobile, China Telecom, Nokia and Apple have launched online application stores, including paid game download services, for cell phone users.

The top game operators in 2009 by market share were Shenzhen-based Tencent Holdings, Shanghai-based Shanda Games and Guangzhou-based NetEase.com, according to iResearch.

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