The news that 1,200 game companies have closed down in 2019 is undoubtedly very sad in the game industry. According to statistics, in the second half of 2020, the list of dead companies continued to be added, breaking the record again.
The statistics are not complete, but we have collected relevant information about these 54 game companies.
There are also individual companies that have been acquired by A-share listings, such as Refeng Interactive. In 2014, Enlight Media acquired 51% of Refeng Interactive’s equity at a transaction price of 176 million yuan and a valuation of more than 340 million (￥).
In terms of the geographical distribution of dead companies, Guangdong and Beijing had the largest numbers, with 18 and 15, respectively, followed by Shanghai and Sichuan with 9 and 6 respectively.
TWHosting.com investigated the cause of death of these 54 game companies and found that it can be roughly attributed to funding problems and industry competition. Among them, 23 game companies died of money burning and industry competition, 20 companies died of insufficient financing capacity, and 7 companies died of cash flow rupture.