According to a source from the Korean press，the scale of the global online game industry reaches 857.4 billion Hong Kong Dollars （HKD），which are far more than film market （worth 662.6 billion HKD） and the music industry （worth 123.9 billion HKD）.At the same time，the game industry demonstrates enormous potentials for further development and it is estimated to reach 1114 billion HKD by 2014.The online game industry possesses huge potential and room for further development at global，regional and local scale.In other words，the online game industry，along with animation and film as well as culture and art，ecome the three core pillars of the creative industry in Hong Kong.Given the enormous potential of the online game industry，the Hong Kong government has various initiatives to boost its development.This current report is part of the Strategic Public Policy Grant of the Research Grant Council of Hong Kong，funded by the Central Policy Unit of Hong Kong，which is precisely one of the government initiatives to support the industries.This project in full is named “Mapping the Hong Kong Game Industries：Cultural Policy，Creative Cluster，and Asian Markets”，which ultimately aims to come up with policy recommendation for the government to develop the industry.With the assistance of the Hong Kong Game Industry Association，the researchers from the School of Journalism and Communication at Chinese University of Hong Kong conducted an extensive study of the online industries by interviewing the key people in all the big game companies in Hong Kong in 2011.Based on the empirical data we gathered from Hong Kong and Macau online game industries，we compiled this industry report to provide companies in Hong Kong and the Hong Kong Government with some baseline data for the purpose of development of the Hong Kong game industry.In 2010，there were about 36 sizeable companies in Hong Kong and their total capital investment has reached 132 billion HKD.We estimated that the market size reached 630 million HKD，and we predicted that the market size would go up to 700 million HKD in 2011.And yet the revenue only accounted for a very small portion （around 0.03%） of the GDP.This means that there is still room for improvement for the industry.The sales of online game are also seen growing in Hong Kong and Macau.There are approximately 0.8 million active gamers in the two regions.Comparing to Taiwan in which its population is about 23.16 million and the market size of online game is about 12.57 billion TWD （roughly around 3.38 billion HKD），Hong Kong and Macau’s game industry is quite underdeveloped.Besides，the popularity of smart phones in the local market reaches 48 percent，which is 8 percent more than that of 2009 and almost a double than the international average.Those smart phones such as iPhone and Android phones usually provide data platforms for users to purchase and download applications，e-books and mobile games.In view of the growing popularity of smart phones，mobile games undoubtedly emerge as a new opportunity for the online game industry.At the end of the report，the researchers also listed out a few concrete recommendations for the government and the industry.