In a remarkable turn of events, China has emerged as the world's fourth-largest licensing market, surpassing Germany with retail sales of licensed products reaching approximately $13.77 billion in 2023. This growth is significantly bolstered by the success of key intellectual properties (IPs) including Black Myth: Wukong, which has sold over 23 million copies and generated more than $1.01 billion globally [cac24e81]. The game, recognized as China's first AAA title, has played a pivotal role in the expansion of the licensing market, alongside other popular IPs such as Joy of Life, Soul Land, Three-Body, and Battle Through the Heavens [cac24e81].
The surge in China's licensing market reflects a broader trend in the gaming industry, where Black Myth: Wukong has not only achieved commercial success but has also contributed to a cultural renaissance. The game has been instrumental in driving retail sales, with the overall gaming market in China reaching record revenue of 91.8 billion yuan (approximately $12.9 billion) in the third quarter of 2024, marking an 8.95% increase from the previous year [0569d9ba].
The National Press and Publication Administration (NPPA) has also played a role in this growth, approving a record 850 domestic game titles in the first eight months of 2024, reflecting a renewed commitment to revitalizing the gaming sector after a licensing freeze was lifted in April 2022 [0569d9ba]. This resurgence has allowed developers like Game Science to thrive, with Black Myth: Wukong setting a new standard for quality and cultural representation in gaming [0569d9ba].
Moreover, the success of Black Myth: Wukong has sparked a 'Wukong economy,' positively impacting tourism and related sectors, particularly in Shanxi province, where the game is set. Retail sales of consumer goods in the area increased by 3.5% in the first seven months of 2024 [32a2aae6]. The game's cultural significance is further underscored by the fact that over 40% of the top 50 IPs in China originate from online literature, which generated 4.35 billion yuan in 2023 [cac24e81].
As the Chinese gaming industry continues to evolve, experts believe that the success of Black Myth: Wukong may encourage further investment in AAA game development, although they caution that it could take years for another title of similar magnitude to emerge [2b012b2e]. With the gaming market projected to reach $45 billion in 2024, driven by consumer demand and innovative IPs, the future of China's licensing market looks promising [2db8aad7][0569d9ba].