Over the past decade, China's gaming market has exploded. Recognizing that games could be a powerful cultural tool to teach its citizens about history and culture, the gaming market grew from less than $160 million in 2003 to a $9 billion market in 2012. Of course, the biggest benefactors have been domestic gaming giants, but there are some who have profited more than others.
Two companies that seem on an unstoppable path of profits are Giant Interactive (UNKNOWN: GA.DL ) and NetEase (NASDAQ: NTES ) . Meanwhile, Shanda Games (UNKNOWN: GAME.DL ) and Perfect World (UNKNOWN: PWRD.DL ) haven't done as well.
In the video below, Fool contributor Kevin Chen outlines how you should think about China's gaming market. Through learning about these companies' successes and failures, you'll get a better understanding for why licensing agreements won't work -- even if it is with Activision Blizzard (NASDAQ: ATVI ) -- and how you can profit from the Chinese government's policies. To learn more, watch the video below.
While investors have gotten rich by investing in China's gaming market, you don't have to limit yourself to just these companies. When you really think about it, much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.