Niko News on China's Video Game Market
Volume 50
September 2010

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Weekly Twitter Posts

Check out the Weekly Update from Niko Partners http://conta.cc/cVe4MW

Tencent's Cross Fire hits 2M PCU, surpassing DNF. Tencent's $35B mkt cap (8/10) helps the machine feed itself http://bit.ly/cbfDIf 6:32 AM Sep 21st via CoTweet

Seems that the Chinese console market will see regulatory overhaul soon, based on Eedoo's announcement of the eBoxhttp://bit.ly/aSrXDa9:01 AM Sep 15th via CoTweet

Check out the Weekly Update from Niko Partnershttp://conta.cc/cQj1Ut9:07 AM Sep 14th via Constant Contact

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

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Oak Pacific (OPI) announced that it will merge two of its SNS sites, RenRen.com and Kaixin.com, to compete more strongly against Kaixin001.com (yes, those two sites have very similar names). RenRen.com is one of the leading SNS sites in China already, and is also open-platform, which distinguishes it from the competition. Kaixin.com is a much smaller player in the SNS world. Kaixin001 is a leader in the space, along with RenRen.com and Tencent's Qzone. There is often confusion between the sites with similar names. This move should strengthen OPI's position, though gamers Niko has interviewed have said that Kaixin001 and Qzone are their two favorites.
Apple recently launched the iPhone 4 in China, to great success. China has the largest market in the mobile industry with more than 800 million subscribers between the three main service providers: China Mobile, China Unicom and China Telecom. China Mobile currently ranks on the top with over 500 million subscribers. But Apple partnered with China Unicom (plenty of analysis in the press about how that was the wrong partnership for Apple). More than 200,000 iPhone 4's have been pre-ordered in China thus far, much improved from the previous model's sales figures there a year ago. The iPhone in China is contract-free and the 32-gigabyte iPhone 4 sells for about 5,999 yuan, the 16-gigabyte model selling for 4,999 yuan. Niko's subscription research clients will read more about China's mobile gaming sector in our China Six-Month Update Report, due mid-October.
Industry speculation on console regulations
Speculation about China's law banning game consoles is a hot topic in the wake of the eBox announcement. Some observers think that the regulation will need to be overturned, or at least amended, to allow for the eBox. Others say that the regulation was vague to begin with and only specifically called out arcade machines as illegal, so consoles could be legal. And still others say that really the only area banned is imported game consoles but domestic competitors would be legal. We know that there are "console alternatives" already like the set-top boxes that behave like a game console but port other types of games for use in China. We also know that the PS2 was allowed from 2004 through most of 2005. And we know that there has been no government complaint about the eBox announcement by Eedoo, a division of Lenovo. We'll all just wait and see what the law of the day turns out to be when the eBox is officially launched in 2011.

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