70% of video game revenue in world's top market comes from China's smaller cities, report finds

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Video games are booming in China's smaller cities, with citizens there accounting for more than half of revenue nationally, according to a recent report by Niko Partners.

The country is the world's top game market and will generate an estimated $40.85 billion in revenue this year, according to Newzoo.

With "fewer things to do for entertainment" in smaller cities as compared with their cosmopolitan peers in Beijing and Shanghai, "gamers spend their time with little cost entertainment which can be social." For video game publishers looking at China, the analyst said: "If you really want to draw the attention of people throughout the country, Tier 4, Tier 5, these places can't be ignored."The spending habits of those in China's lower-tier cities differ from that of their peers in larger cities, Hanson said.

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