Affected by the epidemic, the housing economy driven by home isolation and epidemic prevention measures in the first quarter of 2020 promoted the rapid growth of China's game industry. According to the data from the Game Working Committee of the China Music and Number Association, the actual sales revenue of the Chinese game market in the first quarter reached RMB 73.2 billion, an annual increase of 30% and a quarterly increase of 25%. The strong demand for gaming and leisure also contributed to the continued growth of the Chinese e-sports display market in the first quarter. According to data from Sigmaintell, total shipments of the Chinese e-sports display market in the first quarter of 2020 were approximately 700,000 units, an increase of 58% annually.
According to Sigmaintell's "Monitoring Report on Online Sales of Independent Display Online Market in Mainland China", the total sales of China's e-sports display online market in the first quarter of 2020 was about 470,000 units, an increase of 1.15 times compared with the same period last year. The high-speed growth trend is still maintained. Based on the trend of the online market's proportion in the e-sports market, the proportion of the online market in the first quarter climbed to 66%, the highest point in the past two years.
On the supply side, the epidemic has affected the resumption of the main foundries, especially in Hubei. The loss of production capacity has affected the supply of major e-sports brands, such as AOC and Inno & cn, and emerging brands, such as Xiaomi, resulting in a significant supply shortage in the entire machine market from February to March.
On the demand side, affected by the epidemic situation, the demand for Internet cafes has fallen sharply. The Internet cafe market has ceased operations since February, and resumption of work started in March, but the resumption of work has been slow. The decline in demand in the Internet cafe market has significantly affected the market demand for e-sports displays in China. Although the demand for e-sports hotels grew rapidly in the first quarter, its market size is still very small, and it is difficult to have a reversible impact on the demand trend of the e-sports offline market.
According to Sigmaintell's analysis, in the first quarter of China's e-sports display market, there was a shift in demand under the influence of the epidemic. First, the demand group shifted from being mainly Internet cafe owners to mass players, and second, the purchase behavior from The offline market is mainly shifted to the online market.