U.S. game publishers are increasingly losing market share to Chinese competitors. Chinese firms can develop mobile games faster and at lower cost, while using sophisticated monetization strategies.
Chinese publishers’ share of revenue in Western markets has climbed to 30%. It was 16% in 2019.
Blockbuster titles are driving the shift. Tencent’s Honor of Kings was the top-grossing mobile game in the first half of 2026. It earned approximately $1 billion.
Century Huatong’s Whiteout Survival has also become a top earner. The game has propelled growth in the company’s overseas revenue and profit.
In 2025, no new titles from Western studios broke into the 15 highest-revenue games in key Western markets, underscoring U.S. firms’ struggle to compete with new Chinese hits.