MMORPGs and online casual games will drive China online game operators' total revenues from $1.55 billion in 2007 to $2.67 billion in 2010, Research and Markets said in a report abstract on Tuesday.

Claiming that "China's online game industry has entered a boom period," the firm said there are 120 gaming operators--led by Shanda, Giant Interactive, NetEase and The9--that are running around 200 online games in the region.

Most revenues, the report said, are generated from MMORPGs, although casual game adoption is on the rise; the ease of access and minimal time commitment offered by browser-based casual games is gaining traction with Chinese office workers.

Venture capital firms are also injecting money into Web game portals, which also present new in-game ad opportunities.

Only a small portion of Chinese mobile users play games on their handsets, with mobile online gaming generating $17.5 million in 2007. Research and Markets said 2008 may have been a "turning point" for the sector, however, generating an estimated $55.65 million thanks to the launch of more robust 3G services.

A statement from Research and Markets adds, "Not only has the market seen a huge transformation, but the profile of the country's gamers has also evolved since the sector was in its initial stages of growth.

"The proportion of female gamers is on the rise, and online gaming is now not just the preserve of urban residents. New games are being launched at a fast pace, while the loyalty of gamers to particular titles is a rare commodity."