Niko News on China's Video Game Market
Volume 1, Edition 1
 July 2009

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 "Niko's market intelligence studies were a major contributor to helping us greater understand the Chinese market and the nuances within the industry, which provided key on-the-ground intelligence in forming our strategy."
- Tim Page, THQ China.

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2.29mil PCUs for NetEase's Fantasy Westward Journey is remarkable, although promotion-based. (Nearly double Q1's PCUs) http://tiny.cc/7jXqV12:11 PM Jul 6th from web

Could a Sony PSP Phone be a viable workaround the Chinese ban on game consoles?...11:32 AM Jul 1st from web

Virtual currencies/economies are the next to suffer from China's regulations- may alter future online operator revenues http://tiny.cc/JKkLD6:49 PM Jun 29th from web

 Niko wonders where Obama got his data about the # of Chinese youth who play games-seems unlikely given Niko's research http://tiny.cc/c5TpY6:44 PM Jun 29th from web
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Welcome to Niko News, just part of the market intelligence experience offered  to help you better understand the thriving video game market of China.

Niko Partners is the premier provider of market intelligence and custom research services on China's video game industry. There are more than 50 million Chinese gamers eager to play hit titles on systems with the latest technologies. With Niko Partners market intelligence services, you can get to know these gamers, find Chinese partners, and use our actionable market data to build and execute your strategic plan.
Since NetEase won the rights to operate World of Warcraft in China, legal issues have prevented NetEase from having servers up and running. Gamers have been unable to access the game for more than a month.

Niko believes that the delayed approval stems from a General Administration of Press and Publication policy stating that any foreign game company in a legal dispute with a Chinese company would not be allowed to submit its game for GAPP approval until the dispute is resolved. The9 and Blizzard are disputing some issues and that could be the cause for the GAPP's delay in reviewing the game on behalf of NetEase, the new license holder for World of Warcraft.
Picture of China on a mapFunding for upcoming technology programs in China is predicted to be approximately RMB 3 to 4 billion.

In 2008, some game operators earned a new tax designation of New High Tech Enterprise, which enabled them to gain some tax benefits. There are already other government programs in place to help stimulate growth of China's video game industry. Hopefully this new fund will encompass video game developers, operators and publishers too.
The increasing popularity of digital distribution might help ease the release of future video games as well as provide lower price points for gamers.

Niko believes that digital distribution is necessary for China to hope for growth in its PC games business, as well as its console games business if and when the ban on consoles is lifted.
 
If you have any questions or if you have a project that could use our assistance, please let us know at info@nikopartners.com