Niko News on China's Video Game Market
Volume 16
November 2009

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Weekly Twitter Posts

NCSoft's huge rev and profit growth b/c of Aion's global launch proves that Asian biz models are in demand worldwide http://tiny.cc/tX3Nb 3:06 PM Nov 11th from web

Another copy of a casual game (Happy Farm) drags hope from foreign devs wanting to license one in China for $$ http://tiny.cc/oLzqg 9:46 PM Nov 9th 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 60 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.
If consoles are every legally permitted to be sold in China, the 1-2 million current users of Xbox 360 would face the same punishment as the 600,000-1 million players Microsoft claims to have banned for modifying their consoles or playing illegally downloaded games. However, Chinese gamers are savvy and they have devised workarounds, such as switches to fake the Xbox Live network into thinking that no modifications have been made when they log onto the network. The longer it takes to overturn the ban on consoles in China, the longer Chinese gamers have to figure out all kinds of ways to use their illegally obtained consoles and games in the country.
Tencent, China's largest online game operator based on online game services revenue, continues its impressive growth and domination. The company announced a 92.3% increase in Q3 2009 profit over Q3 2008, and as has been noted in Niko reports as well as in the press Tencent is building quite a presence in North Anerica as well as China. He who has the most capital wins, as it seems.
With 21% of China's 65 million online gamers categorized as hard-core, meaning they play 22+ hours per week, the Chinese government has attempted to help some of those gamers who they see as "addicts" get over their addiction. One need not be a gamer to be considered an Internet addict in China though, and it seems that at least several thousand teenagers have been treated for the condition. Thankfully such addicts will likely not be banned from use of the Internet forever, as it is such an important part of life these days, but some of the rumored rehabilitation practices might serve to scare the hard-core gamers into finding other pastimes to supplement their fun with online games. 
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