Niko News on China's Video Game Market
Volume 48
September 2010

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Weekly Twitter Posts

China's Shanda buys up South Korean game developer, Eyedentity http://bit.ly/9L8mnt 6:50 AM Sep 10th via CoTweet

WoW's WLK online yesterday in China and there is a sharp increase in prepaid card sales, per this article http://bit.ly/9kcGkE 6:45 AM Sep 1st via CoTweet

Lenovo developing eBox game console in new Beijing eedoo tech div. Implies China's ban on consoles may be overturned http://bit.ly/9QXYw9 11:14 AM Aug 31st via CoTweet

Interesting report on the underreported earnings of Chinese upper class. We've known this anecdotally but here it is: http://bit.ly/al1C0V 6:36 AM Aug 19th via CoTweet

Niko Partners releases 2010 Chinese Gamer Focus Group findings http://bit.ly/8Yzerv 6:50 AM Aug 13th via CoTweet

Tencent's online games rev for Q1 & Q2 2010 exceeded $600 mil, whereas full year 2009 it reached $789 mil, & now 2010 will be even higher. 6:35 AM Aug 12th via CoTweet

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Back from China
Lisa Hanson spent 14 weeks living and working in China this summer, with her husband (who also works with Niko) and their two toddlers. It was an adventure and a great opportunity to "walk a mile in their shoes" by living there as opposed to simply traveling  to China and managing employees there. They lived in a tier 3 city in southern China and did a Mandarin immersion program while running Niko, conducted focus groups for Niko's Chinese Gamers Focus Groups Findings Report (July 2010) - a very interesting report by the way, well worth the purchase price of $4,500 - traveled to Shanghai, Beijing, Chengdu and Hong Kong for meetings and sightseeing, and spent a lot of time talking to gamers, visiting Internet cafés and embracing the local gamer culture.
 
In addition, Niko embarked on new research of 7 additional Asian countries as part of the new Niko Asia Emerging Markets research service. We already launched reports on Vietnam and Taiwan, and next up are Singapore, Thailand, Malaysia, Indonesia and Philippines. The Chinese market Six-Month Update Report is also going to be published in October. The company has been busy researching and publishing all of these reports, and now Lisa and her family are back in California. We apologize for not writing a newsletter the past couple of weeks. Contact megan@nikopartners.com to purchase all of the new research!
China Video Game Industry Legal Primer
Please contact Niko Partners to receive a FREE copy of the China Video Game Industry Legal Primer (July 2010), written by The Law Offices of Greg Pilarowski in Shanghai. It is an excellent primer on the topic of regulations, and Niko Partners knows this law firm well. Contact lisa@nikopartners.com or megan@nikopartners.com for a copy. 
Last week, users of Tencent's QQ were rewarded for registering with their real-name. Virtual gifts for players of their games were offered when they successfully registered with authentic identity card numbers. To enforce this, players of QQ games will have their game earnings erased every five hours if they do not register with their real-name and the pop-up windows requesting registration will continue to come up. This is due to the MoC's new online game regulation, the "Interim Regulatory Methods for Online Games," that requires all online game users to register with their real name.
 
It will be interesting to how this will play out with the anti-fatigue law already in place that restricts minors from playing more than five hours in one game a day. Perhaps we will see an increase in the number of games that minors play as they go from one game to another during each game's downtime, as registering with their name will result in stricter control over their hours. Or perhaps they'll figure out yet another loophole (like registering under a parent's name) to get around the registration requirement.

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