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Chinese Video Gamers Get Virtual Goods

Video game market revenues in China increased 68% last year, according to Niko Partners' "2007 Chinese Video Game Market Annual Review & Forecast Report."

Internet cafes are integral to the industry in Asia since a lot of people do not have PCs at home. The report accounted for 20 million PCs in China's 225,000 Internet cafes.

The online segment brought $995 million in revenues, as players spent more money on virtual items and services.

Legitimate sales of PC offline software titles increased 29% in 2006, to 904,000. Revenues from video game software and services are estimated to have a 19% compound annual growth rate through 2011.

Lisa Cosmas Hanson of Niko Partners said that "China added 3.4 million total gamers in 2006 and now boasts 37.5 million gamers, 90% of whom play online games. By 2011 this number is expected to swell to 71.9 million." [eMarketer]

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