Indoor gaming console industry

Industry Status

Market size growth: The global electronic game hall market has reached approximately $50 billion and is expected to continue growing at a compound annual growth rate (CAGR) of 4.5% over the next five years. In China, as of the end of 2022, the market size of electronic game halls has reached about 45 billion yuan, with a year-on-year growth rate of about 7.8%. It is expected that the market size will exceed 60 billion yuan by 2025. In 2024, the entertainment industry represented by video game arcades, claw machines/dollhouses, console games, and immersive VR will reach an annual market size of 45 billion yuan on the consumer side, with a year-on-year growth of 130%; As of June, the number of related stores on Meituan has increased by 70% year-on-year, showing a new trend of strong supply and demand.

Consumer group characteristics: The main audience is concentrated between the ages of 15 and 35, with the age group of 20 to 29 accounting for the highest proportion, nearly 40%. Male players still dominate, but the number of female users is increasing year by year. Meanwhile, as video game arcades gradually become home entertainment centers, the proportion of household consumer groups is also gradually increasing.

Regional development differences: In terms of regional distribution, Guangdong Province leads the country in the number of related stores, Jiangsu Province ranks second, and Henan Province's related store growth rate reached 116% year-on-year, far exceeding other provinces. Since 2023, the sinking market has become an important pole in the layout of the entertainment industry. As of June 2024, the proportion of stores in the sinking market has reached 48%, and the increase in stores has exceeded the total of first and second tier cities.

Development Trends

Diversified entertainment: In addition to traditional arcade games, e-sports events, VR/AR experience areas, indoor carnivals, e-sports, archery and other leisure sports will become new growth points, attracting more consumers of different age groups.

Online and offline integration: combining physical stores with online platforms, creating a comprehensive service system through online booking, online payment, and online game content expansion, meeting diverse customer needs while also bringing more profit opportunities for businesses.

Experiential upgrade: Emphasis is placed on creating a unique experiential consumption environment, providing consumers with immersive entertainment experiences through scene based design, interactive games, and other methods. For example, creating a gaming area with distinctive themes to give consumers a stronger sense of immersion.

Digital operation: Utilizing online stores to conduct new store pre-sales, accumulating digital assets such as users and reviews, and utilizing Meituan live streaming, special offer groups, Meituan circles, divine members and other products for refined operation.