Niko News on China's Video Game Market
Volume 30
March 2010

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Weekly Twitter Posts

The drought in southwestern China might slow down online game usage in that region to save power http://bit.ly/bq1RIb 8:13 PM Mar 19th from web

Tencent claims 387.8 mil active Qzone users in China, compared with Facebook's 400 mil users worldwide. 10:11 AM Mar 17th via web

Snail Game is another Chinese online game company to open a US office - a few weeks ago in LA. 9:20 PM Mar 14th via web

Gaming in China & Korea has always been "social" - it's strange to hear GDC speakers announce revelations that gaming will become all social 12:06 PM Mar 10th via 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 General Administration of Press and Publications (GAPP) appears to have regained or continued, depending on the view, control of online game approvals. The recent submission of World of Warcraft: Wrath of the Lich King by NetEase to the Shanghai GAPP bureau is standard operating procedure to getting a title approved for content. Since it seems as though the battle between GAPP and MOC has been subdued, we doubt that this game will be a political hot potato as its predecessor The Burning Crusade was. Whether or not it will get approved swiftly is another question altogether.
The China Publishing Professionals Association states that China still is short of about 600,000 game developers in demand to work in China. Many game development studios have plenty of very young staff, but still lack mid level managers and high level development talent. It will take a few more years to build it up, but the sector has matured a lot in the past couple of years.
Best Buy is entering more cities in China but the chain store's product list is different than it is in the US, especially for the games area. In the US Best Buy sells packaged PC and console games, and console related products. In China, where game consoles are illegal, the store does not offer those products of course. But they also do not offer packaged PC games, which are legal to sale. The reason is probably that the volumes are so slim that it isn't worth it for their business. It is difficult for consumers to find legal games in China to buy at retail with the exception of independent stores in computer malls. This is an area that has been victimized by piracy but a business solution could exist - after all, more than half of Chinese gamers like to play PC offline games. Why can't we figure out a way to sell them to them legally?
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