Niko News on China's Video Game Market
Volume 29
March 2010

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Weekly Twitter Posts

Lots of Chinese chatter about tightening i-cafe regs this week http://bit.ly/cClsiz 7:47 AM Mar 5th via web

Jesse Schell's great DICe presentation - worth viewing! http://g4tv.com/videos/44277/DICE-2010-Design-Outside-the-Box-Presentation/ 10:28 AM Mar 3rd via web

Lisa Hanson to moderate panel at GamesBeat@GDC "Gaming Without Borders" http://bit.ly/9lYbNu - Wed 3/10 3:30pm Moscone North, rm 305/307 9:42 AM Mar 3rd via web

Lisa Hanson to attend GDC next week. Contact info@nikopartners.com for an appointment. 3:06 PM Mar 1st via web

DDO's increase in revenues after switching to F2P = gamers spend as much/more on free games, just like in China http://bit.ly/95hrdk
11:09 PM Feb 26th 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 70 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.

The fury felt by some people over a pronouncement from a member of the Chinese People's Political Consultative Conference (CPPCC) may have some legs to it. At first blush the pronouncement suggested that privately held Internet cafés should be banned in China and that they should be replaced by state owned cafés to keep tighter controls on activities of patrons within the cafés.  This type of suggestion has been made at CPPCC meetings in the past, but never to this extreme. There has been lots of commentary in the Chinese press regarding the suggestion, and most people seem to be opposed. However, the Ministry of Culture agrees that tighter controls may be necessary to insure that minors are kept out of the Internet cafés and that better monitoring software should be installed in every café on every PC. It would be unlikely for a ban on independently owned cafés to actually happen, but tighter controls are likely.
It is earnings season and we are watching the results of the Chinese online game operators as they are announced. The industry itself is doing well, and both Perfect World and Shanda, who announced earnings this week, had significant increases over the same period a year earlier. Perfect World's game Zhu Xian seems to be doing quite well. Giant Interactive did not have the same experience, and had a significant decrease in net income in Q4 2009 over the same quarter in 2008.
Yet another Chinese online game company has announced that it will launch one of its online games outside of China, this time starting in Hong Kong, Macao, Taiwan and Malaysia. Incidentally, with the increase in exports of Chinese online games to Asia and beyond, it is good timing for Niko Partners to have launched DFC-Niko Emerging Markets, which will cover 10 new markets 8 of which are in Asia, so that we can see from the importing market's perspective the popularity of Chinese online games overseas.
If you have any questions or if you have a project that could use our assistance, please let us know at info@nikopartners.com