The worldwide success of 'Pokemon Go' has demonstrated the marketing power of augmented and virtual reality technologies in the computer game business. It's sent Nintendo's stock prices soaring, and inspired Chinese companies in the sector.

Virtual reality technology has brought digital gaming to a new level. Check out this device! With all the gear, players can simulate a real fight. It needs much less space than other VR devices.

"Most VR devices on the market require between 30 and 200 square meters of space. Our device is quite unique. We developed all the hardware and the algorithm. We also provide whole-package business solutions," CEO of Kat Virtural Reality Kaye Pang said.

They've sold more than 500 sets in just two weeks since the launch. And this Hangzhou-based firm is part of a very big and competitive booming sector. The VR-AR sector is fueled by a large flow of investment, attracting more industry players.

Another major highlight of China's gaming industry is the rise of professional tournaments.

These professional players are like athletes, with a strict training plan, and tight schedule for games. Top players can earn at least 15 million yuan in a year. Sun Xiyao is the founder of China's top organizer of professional tournaments for digital games. He saw a dramatic boom in the sector in 2014.

"Since 2014, the communication channels have became more open. People can enjoy the tournaments via Internet and on their mobile devices, rather than just on TV," Sun said.

Sun also operates a website that people can use to broadcast their games. Good players can attract hundreds of thousands of viewers, yielding great market value. Sun Xiyao wants a more standardized industry.

"The industry should be more standardized. Top level industry associations should issue regulations to guide the tournaments and competitions. Standardization is also essential for the audiences, if they want to have a better experience," Sun said.

China's top sports regulator has included professional electronic gaming as a type of sport. Some local governments are competing to host top-level games to maximize their media exposure.

The market value of the industry now stands at 26 billion yuan, with more than 100 million users across China.