The ranks of online gamers in China will grow from 25.5 mln in 2005 to 61 mln in 2010, reports In-Stat. Government policy is generally in favor of the online gaming industry and several drivers will provide numerous business opportunities. For now, however, profits are elusive for many firms. Less than 15% of Chinese online gaming companies were profitable in 2005. Key first-tier players such as ShanDa, NetEase, The9, and KingSoft, account for a combined 80% of the market. In 2005, there were more than 300 online gaming companies in China. 50% of the games are home-made, and that share will increase in the coming years.

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