Researcher Analysis International is forecasting significant growth in China s online game market, reports Reuters.  The firm has predicted revenues in the category to reach $10.7 billion over the next three years on growing internet penetration.  Analysys says current internet penetration in the country is at 27 percent, compared to more than 70 percent in South Korea and Japan.  It forecasts expansion of internet service will push the number of online gamers in China from 69 million currently to 230 million people by 2012, growing revenues by an average of 41 percent annually.  Reuters cites growing government oversight as the category grows as a risk to foreign online game operations in China.

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