Niko News on China's Video Game Market
Volume 4, Edition 1
July 2009

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"We have enlisted Niko Partners to help us think about how we might be able to do business in the China videogame market. We especially appreciate Niko's ability to arrange and participate in many "on the ground" face-to-face meetings in China between us and our prospective business partners. We find Niko's services to be very valuable."
- David Kwock, General Manager, Tetris Online China

Twitter Feed

For GAPP to quote Sun Shoushan over Kou Xiaowei supports rumors that Kou will soon leave his post for a new GAPP job http://tiny.cc/jE44g
10:00 AM Jul 31st from web

WoW in China is free during its CB - Niko believes the CB will be short & the game will return to paid mode in Aug. http://tiny.cc/l5eBe
5:00 PM Jul 29th from web

Lisa saw fewer foreigners in Shanghai last week. Experts said about 35% of foreigners have left China (Americans 1st to go) b/c of economy
2:50 PM Jul 27th 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.
ChinaJoy was again the loudest trade show in the world. With no carpeting and no noticeable noise control, dancing girls (and boys), loud music, and coin operated toy vending machines at nearly every booth, it was truly a sight to see. This was Lisa's 7th ChinaJoy, and each one has left her in amazement as as well as hard of hearing...
At Comic-Con, Sony Online Entertainment talked about the success of their free-to-play MMORPG, Free Realms, that relies on microtransactions instead of a subscription based business model. Their total registered number of users is nearing five million.

Niko has stated for years that Chinese and Korean online games business models are leading the world, and that historical leaders such as the US, Japan and some European countries will follow suit with online operation, free to play games, and microtransactions. When the model matures in the US, it will likely be improved to incorporate in game advertising in earnest, something that is still in its infancy in China.

China has recently banned websites that host, promote or distribute mafia-themed games or games that glorify the lifestyles of gangsters.

Niko believes that this is the first of many issues to come for Chinese SNS companies who serve as glorified online game operators for casual games. The problem is that these games have not been approved by the GAPP or MOC, nor have they been submitted for approval. Due to the benign nature of the games most SNS companies have decided that they don't need such approval, but officially all games must be approved by the GAPP before operating online. We anticipate that new SNS games will need to be subjected to GAPP approval or another set of approvals by MOC (whose authority over online games in China is rising), and particularly games of "non-green" content and those published by foreign game developers.
Shanda's in-house MMORPG The World of Legend (WoooL) reached the game's sixth year anniversary on July 29th. For the anniversary, a new version, "Fei Sheng Tian Jie," was launched and added a new religious system, pet, virtual items, skills, and more.

It is simply remarkable that a game can remain as popular as WoooL for 6 years!
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