By 2012 Chinese online gaming revenue will near $11

According to Beijing-based research company Analysys International, China’s rapidly growing Internet penetration causes online gaming industry revenues considerable increase. Thus, the revenues are expected to hit 73.1 billion yuan ($10.7 billion) in the following three years.

 Current China's Internet penetration is around 27% according to the latest government data, compared to over 70% in country’s developed Asian neighbors South Korea and Japan.

 By 2012, China's online game sector is supposed to have 230 million online gamers compared to present 69 million.
 Major players in the sector include Tencent Holdings, Shanda Games and NetEase.com.

 As for this year online game revenues are to hit 26 billion yuan ($3.8 billion), growing by 41.2% in average, reported Analysys International.

 Despite the bullish outlook, regulatory risks pose significant overhang for online gaming plays as China steps up oversight of the booming sector, limiting foreign investment and tightening regulations.