Survey Report on the Living Conditions of Mobile Game Entrepreneurs in Chengdu (First Half of 2013)

In 2012, Chengdu’s mobile gaming industry emerged as a rising star nationwide. Not only did companies like Digital Sky and tap4fun—with monthly revenue exceeding 10 million—emerge, but a large number of grassroots entrepreneurs also entered the scene. A series of game products from Chengdu caught the industry’s attention, attracting the interest of various platform providers, publishers, and investors.After a year of development, the landscape of mobile game startups in Chengdu has undergone significant changes. To address this, Game Teahouse launched a community-based survey to assess the current status of these startups. A total of 102 valid responses were received. This survey primarily targeted small and medium-sized mobile game developers in Chengdu; companies that entered the mobile game sector early and have already achieved notable success were excluded from the survey. The survey ran for one month.

IT Teahouse has launched a WeChat public account specifically for the mobile gaming sector, called “Game Teahouse” (youxichaguan). This report will be published exclusively on the Game Teahouse WeChat account. We welcome professionals in the gaming industry to follow us; we will post exclusive information from time to time.

Basic Information

Statistics show that most companies are still in the early stages of startup, with the majority having fewer than 10 employees.60% of companies have been in operation for less than three years and have developed only one game; 63% of companies are not yet profitable; 61% have monthly revenue below 50,000, with in-game item purchases as their primary revenue source; and the average salary for company employees ranges mostly between 3,000 and 5,000.

(Figure 1: Age of Enterprises)

(Figure 2: Company Staff)

(Figure 3: How many mobile games have you developed?)

(Figure 4: Is the Company Profitable?)

(Figure 5: Average Salary of Company Developers)

Game Product Development Status

The vast majority of entrepreneurs choose to release mobile games domestically; approximately 60% of companies promote both domestic and international releases simultaneously. Seventy-seven percent of mobile games have fewer than 500,000 users, and 61% generate monthly revenue of less than 50,000. The primary revenue model is in-game item purchases. Regarding game operation and distribution, 46% opt for joint operation,30% opt for independent operation, and only 18% of mobile game entrepreneurs choose to fully outsource to a publisher. Game promotion is primarily focused on app stores, chart manipulation, and news/PR campaigns, with social media promotion via Weibo and forums also accounting for a significant share.

The specific data is as follows:

 (Figure 6: Major Startup Trends in Mobile Gaming)

(Figure 7: How to Operate After a Product Is Developed)

(Figure 8: Current number of users for the product)

(Figure 9: Current Monthly Revenue of the Product) Sources of
Startup Funding:

58% of entrepreneurs obtained their startup capital from their own savings, while 31% received funding from angel investors or institutional investors. Interestingly, 31% of entrepreneurs indicated they did not need investment, and 51% secured between 1 million and 5 million in funding.

(Figure 10: Main Sources of Startup Capital for Websites)

(Figure 11: Do you plan to raise funds within the next six months?)

Interesting Statistics

Several interesting findings from the survey clearly illustrate that there can be a world of difference between different startup teams during the entrepreneurial process.

(Figure 12: Average Development Time for a Game)

(Figure 13: What kind of work did you do before starting your mobile game startup?)

This article features highlights from the report. To obtain the full version, follow the "Game Teahouse" WeChat account (youxichaguan) and send the message "report" to receive it.