Niko News on China's Video Game Market
Volume 40
June 2010

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Weekly Twitter Posts

Overall, China had a very big presence at E3 this year with many F2P MMOs and new game developers represented #e3 *MC about 21 hours ago via CoTweet

At Chengdu's E3 booth, 4 companies from the same area were represented: Chengdu Shize Tech, Aurora, MediaTech & CPSoft #e3 #chengdu *MC about 22 hours ago via CoTweet

XPEC has another game coming out soon - Bounty Hunter. It will be online in Taiwan this summer then released in the west #e3 #xpec *MC about 24 hours ago via CoTweet

Lager, the first and oldest developer in Taiwan, primarily showed off MMOs Funtasy and King of Kings 3 at E3 #e3 #lager *MC Saturday, June 19, 2010 10:20:01 AM via CoTweet

All of the MMO companies in E3's Taiwan Pavilion were free-to-play (F2P) games with micro-transactions in-game #e3 *MC Saturday, June 19, 2010 9:50:02 AM via CoTweet

For Beijing Baiyou Huitong, their E3 showcase included: Endless War, Zone, Beast Bloody (the most popular), and GD #e3 *MC Friday, June 18, 2010 11:15:01 PM via CoTweet

Huiteng Interactive Tech, a game developer at E3's Beijing pavilion, showed Emotional Paradise as its main game #e3 #huitenginteractive *MC Friday, June 18, 2010 10:30:02 PM via CoTweet

At E3's Beijing Pavilion, Sunground showed off Junksplanet, Age of 7th Dragon and Savage, a supercute RPG #e3 #sunground *MC Friday, June 18, 2010 10:00:11 PM via CoTweet

Nexon made its first E3 debut this year featuring Vindictus, Dungeon Fighter Online, and Dragon Nest - action F2P MMOs #e3 #nexon *MC 6:35 PM Jun 18th via CoTweet

At E3 Shanda was represented by a booth for Magic World 2 Online http://m2.12he.com/ #e3 #snda #shanda *MC 6:30 PM Jun 18th via CoTweet

Perfect World announced a new game in the pipeline at titled Swordsman Online http://bit.ly/cvm4Rf #e3 #perfectworld *MC 6:23 PM Jun 18th via CoTweet

At E3 ChangYou showcased three games: Dragon Oath, Blade Wars (open beta launching 06/2010), and Zentia (coming soon) #e3 #changyou *MC 6:20 PM Jun 18th via CoTweet

Strong presence of China at #e3 2010 w/ the Beijing, Taiwan & Chengdu pavilions as well as Perfect World, ChangYou and Shanda 5:47 PM Jun 18th via CoTweet

Megan is off to E3 for Niko, Lisa is observing Chinese gamers on Hainan Island, & Niko China has begun our summer focus groups series #e3 5:56 AM Jun 14th via web

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Niko Partners at E3 2010
Niko Partners observed a very strong presence by Chinese companies at E3 2010. Megan Carriker attended E3 and summarized her observations about Chinese (and some Korean) games and trends in this week's Niko News.
ChangYou
ChangYou announced a new flagship title at E3 called Zentia featuring a comic book 3D style with a unique social leveling feature - it requires the entire community to work together to open higher game content. Zentia is planned to enter closed beta in July. They also announced the open beta date for their F2P action MMORPG Blade Wars, as well as the upgrade of their hit game Dragon Oath from 2.5D to 3D. 
Perfect World
Perfect World showcased several big hits this year, particularly the increasingly popular Battle of the Immortals. A representative tipped off Niko to the release of Swordsman Online for North America. They informed Niko that they want to prove to American gamers that F2P games don't forsake quality.
Shanda
Niko was able to talk with representatives at Shanda's booth for Magic World 2 and had the opportunity to watch their E3 flagship game in action. Magic World 2 is a game by Shanda (SNDA) and Goldcool. Their game is very similar to World of Warcraft but the exciting feature they pointed out was the incorporation of a panda race. The Pandaren race is something WoW users have been requesting from Blizzard ever since the game's inception.
NEXON
NEXON America had their first booth at E3 this year. They featured three games: Dungeon Fighter Online, Vindictus and Dragon Nest. They focused on action games this year with their pipeline and, much like other F2P companies, emphasized their desire to re-shape the image of F2P games in the minds of American gamers. After talking with NEXON America CEO Daniel Kim, Niko felt the most insightful comment offered about F2P games was that "a majority [of users] don't ever pay a single dime...but their network value is just as important as their spend value."
E3 2010: Beijing Pavilion
At the Beijing Pavilion, Niko had the honor of talking with four companies. The first was Sunground, a development company, has created Junksplanet, Age of 7th Dragon and Savage. Their company has been around since August 2008. Huiteng Interactive Tech is a game developer that makes games that emphasize socializing and interaction. Their game "Emotional Paradise" targets female players and it' a community building MMORPG with minigames, chatting and family fun. They have two games in development, one publishing next month. They have about 30 people at their company but it's growing. Beijing Talent Walker creates social games like Happy Kitchen and that game alone has over two million users on Facebook. Beijing Baiyou Huitong self develops and publishes their games. The ones featured at E3 were Endless War, Zone, Beast Bloody, and GD. Beijing Baiyou Huitong claimed its European/Western style was vital to the success of its games.
E3 2010: Chengdu Pavilion
Chengdu had an impressive booth established to show off the successes of video games in Chengdu, the capChengdu E3 2010ital of the Sichuan province. It was essentially a representation of four companies from Chengdu because "video games in Chengdu are booming." Paid for by the city of Chengdu, the booth showcased companies like Chengdu Shize Tech, Aurora, Media Tech and CPSoft.
E3 2010: Taiwan Pavilion
All of the booths in the Taiwan Pavilion (except for Keystone) offered F2P games. They all preferred the F2P model because of the low entry level and the belief that it attracts more people to their games. Wayi is a publisher and developer in Taiwan and their showcased game was 81 Keys. When asked more about 81 Keys, they said it's a fantasy MMORPG that targets teens and "requires some skill." Lager is a company that only works on MMORPGs. They claim to be the first and oldest developer in Taiwan. Funtasy, the main game showcased, was developed for children and girls. The emphasis of this game is on making friends and using the game for educational benefits. The representative that Niko talked with claimed that teachers ask their students to play this game together and learn from each other. XPEC entered the online games market three years ago. Chaosland, their flash-based, full-featured MMO, launched this year. Bounty Hunter Online was their big game they were showing off and it's coming to Taiwan this summer and then to the west later. They claimed that it is "more sci-fi than traditional games." Winking Entertainment was established in 2000 and they were showcasing XAOC, a 3D MMORPG scheduled to come out next year. Keystone was interesting because they were the only Taiwanese company focused on developing console games. Cold Energy is a shooting game for the 360/PS3/PC coming out in two months. MuMu is a music game that will be finished in July. Paradise, a Wii music game, will be finished next month then published via WiiWare.

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.
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