Why Invest in Chinese to Indonesian Game Localization for Your Next Release?

China has held the position as the largest gaming market in the world, having huge growth in the industry, with an estimated value of more than US$71 billion by 2025. If it is a huge domestic market, then why are Chinese game developers so interested in storming the Indonesian market with their games? This article will discuss why investing in Chinese to Indonesian game localization is worth it.

A Peek into the Chinese Gaming Market

Before looking at why it's a good idea to invest in Chinese to Indonesian game localization, let's take a look at the current landscape of the Chinese gaming market.

According to an annual report published at the 2023 China Gaming Industry Annual Conference in Guangzhou, China, its domestic gaming market has continued to grow. In 2023, revenues from the sales of China's domestic game market reached about 303 billion yuan, or around 42.7 billion US dollars, up 14% from a year ago. Pretty impressive, right?

A few major players dominate the gaming industry in China. First, there is Tencent—the largest game publisher globally—who have made names with games such as Honor of Kings and PUBG Mobile. Then comes NetEase, another big player in the industry with their critically acclaimed games, including Fantasy Westward Journey and Knives Out. Not left behind is miHoYo, again making it global with the phenomenal game Genshin Impact.

Is It Worth to Invest in Chinese to Indonesian Game Localization?

Although China's gaming market is huge, developers are exploring new horizons to maximize their reach and revenue. One of the most promising opportunities lies in the dynamic Indonesian gaming community which continues to show significant improvement from year to year. The question is, why?

1. The Chinese Gaming Market is Starting to Become Saturated

You may be wondering, why are Chinese game developers so interested in turning their attention to the global market, especially Indonesia. One of the major reasons is that Chinese gaming has started to show a saturation tendency in its market. There is too much player contention and competition, making the space for growth in this country limited.

According to Statista, China has a share of about one-fifth of the total 5.4 billion global internet users. Although large, these numbers are very low compared to the internet penetration rate in China when compared with other Asian countries. Given this fact, it has been quite pertinent for Chinese game developers to reach out to foreign markets.

2. Strict Government Regulations

Another reason why many Chinese game developers consider Chinese to Indonesian game localization very promising is because the Chinese government has tightened regulations regarding the domestic gaming industry.

You need to know that even though the gaming sector in China is very large, the Beijing government applies very strict regulations for gaming companies. Every game that wants to be released in China must first obtain permission from the government.

To obtain release permits and ISBNs, games must comply with various government requirements, such as ensuring there is no explicit violent content. In July 2021, the NPPA decided to suspend the procedure for applying for new video game registration to get ISBNs. As such, no new games have come out within China since then, which has affected the thousands of gaming companies operating inside the country.

Normally, the NPPA passes80-100 games every month, but in July 2021, the whole process relating to applying for permits for the launch of new games was suspended by the authority. This freeze lasted for several months and became a serious problem for gaming companies in China, both large and small.

Data from Securities Daily shows that around 14,000 small and medium companies in the gaming industry were affected by the NPPA decision, which caused many of them to go bankrupt.

3. Cultural Similarities Which Makes the Process of Chinese to Indonesia Game Localization Easier

Indonesia and China have several similarities, such as large populations. China is the country with the first largest population while Indonesia sits in fourth place.

From a geographical perspective, Indonesia and China are also quite close. This facilitates cultural exchange between the two countries. So, it is not surprising that the leadership style of the Indonesian government has several similarities with the Chinese government.

For example, in terms of gaming and esports culture, Indonesia also has similarities with China. Both in Indonesia and China, mobile esports is growing rapidly.

In China, this happened because Beijing had banned the sale of consoles. They only allowed console sales in 2015. As a result, the gaming industry that is developing there is PC games and mobile games. Meanwhile in Indonesia, mobile games and esports are growing because most Indonesians first encountered the internet via smartphones.

4. Indonesia’s Gaming Market Has Been Booming

Indonesia is the 3rd largest mobile game market based on Google Play downloads. This was revealed in the State of Mobile 2023 Gaming Report which stated that Indonesian gamers spent a total of $370 million on mobile games in 2022.

The report which analyzes consumer expectations and habits towards mobile game applications also shows the Most Favorite Games in Indonesia in Q1 2023. It turns out that Mobile Legends: Bang Bang (made by Shanghai Moonton from China) occupies the top position in the list of most downloaded games in Indonesia. as well as being at the forefront in terms of consumer spending and monthly active users.

It's no wonder that with such data, a lot of Chinese game developers are very much willing to invest in Chinese-to-Indonesian game localization. Indonesia offers huge potential for a dynamic gaming market, worthy of investment. Can you imagine how much potential can be achieved?

5. Indonesian Gamers Love to Play Games by Chinese Developers

The reason most Chinese game developers are keenly interested in localizing their games to Indonesia is that people really enjoy playing games coming from the country of the Bamboo Curtain. According to a report by Adjust, which provides cross-platform measurement and analytics, among others, Indonesia has always been one of the most profitable markets for Chinese game developers.

April Tayson, Regional Vice President of APAC Adjust, noted that according to the latest data, it showed that people in Indonesia prefer to download games made by China-made developers like Mobile Legends and PUBG. In fact, around 30% of total game downloads in Indonesia are games made by Chinese developers. This figure shows how popular games from China are among Indonesian gamers.

With such great interest in games made in China, game developers from China see a golden opportunity to localize their games to Indonesia. This localization process, however, is much more than just translation and involves an adaptation of content to suit local tastes and cultures.

Another reason that Chinese games dominate the market is the high-quality content and highly immersive gameplay. As Tayson puts it, games like PUBG Mobile and Genshin Impact, revolutionized the era of mobile gaming by providing a console-like gaming experience on mobile devices.

They also focus on player interaction and community building. These games not only offer great graphics and interesting stories but also build a solid community among the players. This makes the players more loyal and engaged in the game.

The Most Difficult Challenges of Chinese to Indonesian Game Localization

If you are thinking about localizing Chinese games to Indonesia, you will probably face some big challenges, such as:

• Even though Indonesian and Chinese cultures have points of similarity – they both have a rich and long cultural heritage, for example – what is well received in China may not be the same in Indonesia.
• Indonesia and China are both developing countries. But, there are significant differences in internet speed that can affect the gaming experience. According to data from Speedtest, mobile internet speed in China reached 113.35 Mbps, while in Indonesia it is only around 16.7 Mbps. This difference is quite striking and could affect how well-localized games can be played on mobile devices in Indonesia.
• Mandarin has rich, deep, and complicated words, with each character carrying multiple meanings. This makes translating terms like weapon names, spells, and power-ups challenging without additional context, such as screenshots or item descriptions. Literal translations from Mandarin to English often feel strange and illogical.

Example of Successful Chinese to Indonesian Game Localization

Localization of games from China to Indonesia has proven to be a very effective strategy for achieving success in this ever-growing gaming market. Several well-known games from China have succeeded in conquering the hearts of Indonesian gamers through a precise and careful localization approach. Here are successful examples:

Genshin Impact

Genshin Impact, developed by miHoYo, has become very popular in Indonesia thanks to its solid localization strategy. This game is not only well translated, but also adapted to local preferences and culture.

miHoYo ensures that in-game events, character dialogue, and even item names are tailored to the tastes of Indonesian players. As a result, Genshin Impact received an extraordinary response and has a loyal player base in Indonesia.

PUBG Mobile

This mobile shooting game by Tencent is also booming in Indonesia. The game's success is largely due to its thorough localization efforts. The Tencent team not only translates texts, but also holds local tournaments, special events, and collaborations with a number of Indonesian celebrities, influencers, and even YouTubers, such as Habib Jafar, Ariel NOAH, Pevita Pearce, and many more.

Honkai Impact 3rd

Honkai Impact 3rd, also from miHoYo, shows how good localization can lead to huge success. This game offers an in-depth story and stunning graphics, all of which are translated very well into Indonesian. In-game events adapted to Indonesian culture and active communication with the local community helped Honkai Impact 3rd build a solid player base in Indonesia.

Mobile Legends Bang Bang

This MOBA game by Moonton is also very popular among Indonesian gamers (reaching 81 million monthly active users) thanks to extensive localization. Moonton ensures that this game is not only translated well but also holds big tournaments in Indonesia, often holds interesting events for Indonesian players, and collaborates with local brands, such as Indomie, Gojek, Telkomsel, Traveloka, etc.

Takeaways

After exploring various aspects of localizing Chinese games to Indonesia, it is clear that investing in this process is a smart move for game developers looking to expand their reach. Why? Because the rapidly growing Indonesian gaming market offers great opportunities for growth, especially with the high interest in games made in China.

Digital-Trans Asiais ready to bring your game to the Indonesian market in an authentic way through professional and effective Chinese to Indonesian game localization services. With our experienced team of experts, we ensure that every element of your game, from skill names to item descriptions, is accurately translated and adapted for local audiences.