Weekly Twitter Posts
Check out this Forbes article interviewing Lisa,
managing partner of Niko, & David Cole of DFC http://bit.ly/bbEPpP #farmville #onlinegames 8:48 PM Jun 11th via web
Lisa saw 2 defunct icafes in Sanya today & 2
that are open and busy. 1 is very big & nice, but even the small 1
had >30 seats (per the law) 8:40 PM Jun 11th via web
Online gaming usage in Chinese icafes has slowed,
yet the MOC reported 6.7%
growth in icafe users in 2009 over 08 http://bit.ly/ch4dQZ
4:30 PM Jun 9th
via web
In March Niko estimated that there are 138k icafes
in China & today
the MOC stated that there are 138k icafes in China http://bit.ly/ch4dQZ
5:46 PM Jun 8th
via web
In an icafe in Sanya, China today we saw no one
playing WoW, though it is the leading MMORPG in China. 6:50 PM Jun 4th from web
Signs point to a slowing in the growth of
registered users of Chinese SNS like Kaixin001 & Renren http://bit.ly/aNeIk4 http://bit.ly/c86AWl
5:51 PM Jun 2nd
via web
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The Chinese game operators have taken a closer look at
exporting to Japan this year, and the SNS space is no exception. Now
RenRen.com, one of the largest Chinese social networking service, has partnered
with Softbank to launch an SNS platform in Japan called "Gummy." Supposedly the
developers of SNS games will make more money on the Japanese site than they
will via the Chinese site. SNS is very popular in Japan, both on PC and mobile
platforms.
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It is known that Facebook is considering China market entry,
and may even be quite close to it. But to what end? Perhaps the company wants
to compete against the several existing and very popular Chinese competing SNS
sites, but that is unlikely. Why would Facebook want to enter a market where it
most likely would not be #1? It probably wants to be a glorified online games
operator for SNS games. Perhaps it wants to establish a listening post for
figuring out how to maximize virtual goods revenue, and then take that new
understanding back to the US and the rest of the world where it is #1 in its
segment.
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This week a SIG analyst downgraded Tencent from positive to
neutral, as explained in the blog Digicha. The downgrade is based on a
valuation concern that the company will not be able to add enough valuation to
warrant worthwhile returns to investors unless it makes a significant move such
as purchasing a company, perhaps Perfect World or Sina. Niko Partners does not
cover the financial aspects of the online game operators. However, the analyst
states a compelling point that we have already stated and we agree with: social networking gaming is now competing for the time of traditional online
games in China. It is because of the surge in SNS games that Niko is trying to
delve deeper into the behavior and psyche of Chinese gamers, particularly via
12 focus groups we are conducting in 2 Chinese cities this summer. We already
know that online gamers spend significant time on PC offline games as well, but
those games do not take revenue away from online games. SNS games, with virtual
economies, do take revenue away from online games, and they take the time away
too. Another component of this is the fact that Chinese game companies have
been remiss at shaking up the genres they offer, in spite of the shift to a
demand driven market in which gamers have made it clear that they want great
games and more choice of genres. Now they are acting on that. The fact that 95%
of all online games that applied for a GAPP permit are domestic (according to a
statement made by a GAPP official this week) makes it even less likely that
Chinese gamers will be offered the variety they crave.
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Niko News is just part of the market intelligence experience offered by Niko Partners 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.
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If you have any questions or if you have a project that could use our assistance, please let us know at info@nikopartners.com or contact Megan Carriker at 336-326-5595 or megan@nikopartners.com
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