China’s Internet cafes still crucial to online video game growth

China’s Internet cafes are still critical to the growth of the online video game industry in that country, according to a report by market researcher Niko Partners.

Internet cafes will account for about 40 percent of the $2.5 billion in revenue generated by online game operators in 2008 in China. There are an estimated 21.9 million computers installed in 185,000 Internet cafes in the country. Overall, Internet cafes generate $20 billion in revenue a year.

While gamers in big cities such as Shanghai and Beijing often have their own home computers, many of them still visit the cafes to socialize and compete with friends. In smaller cities and rural areas, the cafes serve as the only place where gamers can play.

The firm looked at 507 Internet cafes in 18 cities throughout China and it surveyed more than 500 gamers. About 71,000 of the cafes are unlicensed.

Dean Takahashi

Dean Takahashi is editorial director for GamesBeat at VentureBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.