area, mobile games saw a growth in the user scale and utilization ratio, whose revenue exceeds that from PC client games. But, as regulators tight up their supervision, small to medium-sized game makers face a growing survival pressure and more industrial oligarchs appear. The revenue of PC client-end games has almost drawn to stagnation. Through many years of development, large game makers has dominated the market and focused on developing mobile games, with an increasingly smaller growth potential left for PC games. According to some public financial statements, most online game makers in 2016 saw that their revenue from mobile games exceeded that from PC games, with the growth rate of the latter being far lower than that of the former. In addition, as the number of games independently developed by game makers declines year by year, the revenue from overseas agent PC games takes up a growing proportion of the domestic total. Mobile games become the revenue pillar of the online game industry, and related policies advance its sound development. But the Matthew Effect is being highlighted. The Notice on the Administration of Mobile Game Publishing Services was put into force in July 2016, which lays a solid foundation for solving the long-term problem of poor-quality and pirate games haunting the industry. Meanwhile, the regulations set forth higher requirements for registered capital and related qualifications of game publishers, objectively raising the threshold of the industry. As the sluggish domestic capital market is accompanied by the disappeared flow dividend, increased marketing costs and raised industrial threshold, small game makers will gradually lose competitiveness within the industry while large online game makers with strong capital reserve and R & D capabilities will gain more edges in the competition. 5.2 Online literature Up to December 2016, the user scale of Internet literature was 333 million, accounting for 45.6% of the total netizen scale and representing an annual increment of 36.45 million. In particular, users of mobile Internet literature reached 304 million, constituting 43.7% of total mobile netizens and recording an annual increase of 44.69 million. The 39th Statistical Report on Internet Development in China 7373

Statistical Report on Internet Development in China - Page 83 Statistical Report on Internet Development in China Page 82 Page 84