Abstract
At present, the online game has become one of the cultural and creative industries which is in the most rapidly growing, the huge market potential and the most far-reaching Internet industry.This paper, using the modified Porter's Diamond Model, in seven aspects to analyze the influencing factors of online game industry's competitiveness and they are the production elements, demand conditions, support industry and related industries, enterprise strategy and competition, the government, chances and the absorption and innovation of knowledge. There is a lack of innovativeness in china's online game industry. The market is facing an oligopoly monopoly development problem and the financing system is not perfect became the restrictions on the developing of the online game industry in china.On the basis of above, the corresponding countermeasures and suggestions are put forward.
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