China's mobile handset game market was undergoing scale development in 2005 and the total market value reached RMB 1.2 billion.

Currently, mobile handset games mainly rely on three technological platforms, i.e. the short message (SMS), WAP and JAVA/BREW. Of the three businesses, game service also is an important part. So from this angle, the subscriber number and the market scale of SMS, WAP and JAVA/BREW are closely related to the scale of mobile handset game industry. With the development of JAVA terminal technologies, the promotion by the top-two operators, which are China Mobile and China Unicom, and the strong support of service providers, the subscriber number of JAVA/BREW was increased sharply in 2005.

According to ResearchInChina, the market value of China's mobile handset game market was RMB 1.2 billion in 2005, among which SMS games shared 42.6% of the market, WAP shared 37.5%, JAVA shared 11.3% and BREW shared 8.5%. Except that the market scale of SMS games declined, the others all enjoyed an increase. The market scale of WAP games exceeded RMB 400 million, the market scale of JAVA and BREW games both exceed RMB 100 million. BREW games enjoyed the highest increase rate.

Market Share Distribution of China's Mobile Handset Games, 2005

With the improvement of the network environment and the technological platform development of WAP, JAVA and BREW, China's mobile handset game industry shows a large- scale tendency.

By revenues of WAP games in 2005, the top six service providers were sequentially KONG (www.kongzhong.com), Shenzhen Xun Tian, MNC, TOM, Sina and Tencent. The monthly income of each service provider ranges from thousands of RMB to a million. Among these service provicers, KONG has obvious advantages over others.

As an essential source to WAP, Mobile handset game accounting for about 10% of the total income of WAP service.

In the forthcoming years, the commercial utilization of 3G in China will promote the mobile handset game market in a rapid growth trend and expand the subscriber scale accordingly. The mobile handset game business will experience a steady development and the market scale will exceed RMB 3.1 billion by 2008.

In 2005, China's WAP game subscribers reached 7.9 million, and the market scale reached RMB 450 million, up by 103.1% and 422.0% over the year of 2004 respectively. By the end of 2006, the subscribers of mobile handset games in China will reach 23.11 million, up by 62.9% over the year of 2005 and the market share of SMS games will decrease greatly, sharing only 5% of the total mobile handset game subscribers. Subscribers of WAP games will increase obviously and account for 60% of the total mobile handset game subscribers. Considering JAVA/BREW games, the subscriber number of JAVA and BREW will share 29.4% and 5% of the total mobile handset game subscribers respectively. The market scale of WAP games will sharply increase to RMB 800 million by the end of 2006.

For the operators, service providers and handset terminal manufacturers, China's enlarging mobile handset game market will provide great investment opportunities.

2. Value Chain and Business Mode of China's Mobile Handset Game Industry
2.1 Structure of the Value Chain
2.1.1 Mobile Operators
2.1.2 Mobile Handset Game Service Providers
2.1.3 Mobile Handset Game Developers
2.1.4 Mobile Handset Game Subscribers
2.1.5 Handset Manufacturers
2.1.6 Distribution Channels
2.1.7 Providers of Concerned Mobile Handset Game Technologies 
2.2 Business Mode of China's Mobile Handset Game Market

3. Status Quo of China's Mobile Handset Game Industry, 2005
3.1 Status Quo of the Development, 2005
3.1.1 Operators
3.1.2 Industrial Chain of Mobile Handset Games
3.1.3 Technologies
3.1.4 Terminals
3.1.5 Service Providers
3.2 Market Scale of China's Mobile Handset Game Industry, 2005
3.2.1 Analysis of the Market Scale of China's Mobile Handset Game Industry, 2005
3.2.2 Analysis of Mobile Handset Game Subscribers in China, 2005
3.3 Influential Factors of China's Mobile Handset Game Market
3.3.1 Stimuli
3.3.2 Hindrances

4. Major Mobile Handset Game Service Providers in China
4.1 Revenues and Market Share of Major Mobile Handset Game Service Providers
4.1.1 Revenues and Market Share of Major SMS Handset Game Service Providers
4.1.2 Revenues and Market Share of Major WAP Handset Game Service Providers
4.1.3 Revenues and Market Share of Major JAVA Handset Game Service Providers
4.1.4 Revenues and Market Share of Major BREW Handset Game Service Providers
4.2 Competition Strategies of Major Mobile Handset Game Service Providers in China
4.2.1 KONG
4.2.2 MIG China CO., Ltd.
4.2.3 Linktone Ltd
4.2.4 168wap
4.2.5 Mfun86
4.2.6 Digifun
4.2.7 5wan
4.2.8 Magma Digital
4.2.9 Joymobile
 
5. Analysis of Development Trends of China's Mobile Handset Game Market
5.1 Development Trends of China's Mobile Handset Game Market
5.1.1 Market Scale
5.1.2 Mobile Handset Game Technologies
5.1.3 Varieties of Mobile Handset Games
5.1.4 Distribution Channels
5.2 Development Characteristics of China's Mobile Handset Game Market
5.2.1 Promotion of 3G for the Development of Mobile Handset Game Industry
5.2.2 Sharp Increase of WAP, JAVA and BREW Games 
5.2.3 Sharp Increase of Mobile Handset Game Subscribers
5.3 Forecast of China's Mobile Handset Game Market, 2006-2008
5.3.1 Forecast of Market Scale
5.3.2 Forecast of Mobile Handset Game Subscribers
5.3.3 Forecast of Market Structure

6. Investment Opportunities and Suggestions
6.1 Analysis of the Investment Opportunities in China's Mobile Handset Game Industry
6.1.1 Policies on Mobile Handset Game Industry
6.1.2 Policies on Operators
6.1.3 Growth Points of China's Mobile Handset Game Industry
6.2 Suggestions on the Development of China's Mobile Handset Game Industry
6.2.1 Suggestions on Operator Development
6.2.2 Suggestions on Service Provider Development
6.2.3 Suggestions on the Development of Handset Terminal Manufacturers
6.2.4 Suggestions on the Supervision Sectors