The Drastic Transformation of Internet Cafes in China: From Luxury e-Sports Facilities to Outdoor Gaming

From Elite Social Hubs to Popular Entertainment: 30 Years of Chinese Internet Cafes

When was the first time you visited an internet cafe? And when was the last?

These questions symbolize the evolution of internet culture in China. The country’s first internet cafe opened in Shanghai in 1996, charging a steep 40 yuan per hour. Back then, it was a digital salon accessible only to the elite, far removed from the lives of ordinary citizens.

However, the “Blue Extreme Speed” arson incident in 2002 dramatically shifted the public perception of internet cafes. Four minors, who had robbed a student in an internet cafe and were caught by the staff, retaliated by setting the establishment on fire. The tragedy resulted in 25 deaths and 12 injuries, sending shockwaves through the education, legal, and IT sectors.

Following the incident, internet cafes faced widespread social criticism, and obtaining an operating license became exceedingly difficult. Even at a cost of hundreds of thousands of yuan, many operators could not secure permits. This paradoxically led to an explosion of unlicensed internet cafes operating illegally.

How Smartphones and the Pandemic Changed the Landscape

As personal computers and smartphones rapidly became household staples, the relevance of internet cafes began to wane. The COVID-19 pandemic further exacerbated their decline, halving the number of internet cafes in China from 152,000 to 77,000.

Many believed internet cafes were an industry destined for obsolescence. Yet, signs of revival emerged unexpectedly. By 2025, the number of internet cafes nationwide is projected to recover to 122,600, with over 75% of them operating as e-sports facilities.

Shedding the Grimy Image: A Shift Toward Luxury

Today’s internet cafes bear little resemblance to their predecessors. With the introduction of premium services and the transformation into multi-purpose complexes offering dining, lodging, and entertainment, the once sleazy image of internet cafes has been completely revamped.

What was once a place where young people could game all night for 30 yuan has now become a space of opulence. These high-end e-sports facilities, decked out with RGB lighting, ergonomic gaming chairs, and coffee machines, resemble nightclubs more than traditional internet cafes.

Even the typical snacks have evolved. Cheap sausages and instant noodles are now considered bottom-tier options that some patrons won’t touch unless provided for free. Smoking habits have also shifted, with users opting for premium brands over budget options.

The Persistent Presence of “Low-Cost” Internet Cafes

Amid the emergence of flashy, high-end facilities, grassroots internet cafes still manage to thrive. One notable example is the rise of “outdoor internet cafes,” which consist of long tables and small chairs set up in open squares, with rows of second-hand laptops available for use.

These setups use high-output power strips to enable multi-user connectivity, and the open space often serves as a viewing area for spectators watching games. While the setup offers no protection from the elements, the absence of costly rent and fire safety inspections provides a significant advantage. Operators lure passersby with phrases like, “20 yuan and you can play to your heart’s content.”

These outdoor cafes attract a surprisingly diverse crowd. Children come in groups, sometimes accompanied by parents, while retired seniors, bored with chess or traditional board games, explore strategy games. Here, generations born in the 1980s and 2020s connect over shared gaming experiences, creating a rare and valuable communal space.

The Rise of Mobile Phone Cafes in Africa

The transformation of internet cafes isn’t limited to China. In Africa, delayed internet infrastructure and high data costs have given rise to a new model: the “mobile phone cafe.”

In these cafes, phones are mounted on fixed stands, allowing groups of people to gather and watch short videos, play mobile games, or chat. These establishments see over 200 visitors daily, and the operators can earn thousands of yuan each day, recovering their initial investment within months—a business model akin to a farmer’s reinvention.

Locals, eager to overcome the challenge of limited internet access, queue up for their turn at a phone. Some entrepreneurs have even abandoned the “pay first, play later” model, allowing users to play and pay with earnings from in-game activities. They also provide food, creating a more comprehensive experience.

Xiaomi Stores: The New “Free Internet Cafes”

Back in China, an unexpected venue has begun to serve as a new kind of internet cafe: mobile phone brand experience stores, particularly Xiaomi stores.

Unlike the dimly lit basements or exposed outdoor squares, these spaces are situated in brightly lit shopping malls. Visitors can enjoy free air conditioning, test out display devices, and use high-speed internet—all free of charge.

Elementary school children often gather here to play on the devices, but instead of being chased away, they are welcomed by staff who act more like internet cafe managers. Occasionally, the children are even offered tea or snacks. From a business perspective, this hospitality is seen as an investment in cultivating future users.

Between Isolation and Connection: The Role of Technology

Technology may ultimately lead us to a state of efficient solitude, yet internet cafes have historically served as sanctuaries for the downtrodden and a utopia for youth with limited entertainment options.

Whether it’s a luxury e-sports facility, an outdoor setup with plastic chairs and second-hand phones, or a mobile phone store that nurtured childhood memories, these spaces should all be recognized as trenches for modern-day adventurers.

Once existing on the fringes of cities, internet cafes have witnessed the uncertainties and choices of generations. While their physical forms and appearances may have changed, the question remains: has the person you once gamed with also changed?

This question perhaps encapsulates the enduring universal message of internet cafes, even after 30 years.