Happy New Year from Niko Partners! To celebrate the year of the rabbit and last year's successful launch of the Southeast Asia Video Game Market reports, the Niko Weekly Update will now include news from Greater China (mainland China, Taiwan and Hong Kong) and the six countries we cover in Southeast Asia (Indonesia, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam).
 

ChangYou recorded $91.7 million in revenues for the fourth quarter of 2010, up 7% q-o-q and 30% y-o-y and exceeding

guidance of $86 million to $89 million. Total revenues for the full year reached a $327.1 million, up 22% y-o-y, the report said. Aggregate peak concurrent users (PCU) grew 5% q-o-q and 7% y-o-y to 1.03 million, while aggregate active paying accounts (APA) increased 3% q-o-q and 13% y-o-y to 2.7 million, the report said. Average revenue per paying user (ARPPU) over the quarter reached RMB 219, up 2% q-o-q and 12% y-o-y. The substantial growth reflects the popularity of ChangYou's leading games and also bodes well for the rest of the online games industry.

The latest effort for Chinese parents to stave off game addiction in children, a program called the "parental watch project" will launch in China next month. Online gaming companies will be required to provide parents access to a special call center and website to monitor their children's activities online. Parents will also be given a kill switch that will allow them to limit or ban their children from online activities at any point in the day. Chinese youth gamers swiftly get around regulations such as this one (including the anti-fatigue law that affects all Chinese youth gamers and real name registration requirements) but perhaps by giving the responsibility and power directly into the hands of the parents, things will play out differently. The new policy should not be too onerous for online game companies unless each and every parent gets actively involved. In July 2011 Niko will publish our first ever Chinese Youth Gamers Report, and will cover many topics including the "real" impact of youth protection policies.

Taiwan's economy grew at a rate of 10.47 percent in 2010, its fastest in 23 years. However, most of the gains benefited companies rather than individuals, for whom salaries rose an average of merely 1.6%. The economy had been rocked by depressed global trade. The game market revenue still performed well, and we anticipate continued gains in 2011-2014 after Niko's estimated 11% growth in 2010 over 2009.
 

Perfect World released an article on its business and expansion packs. Notable items are the business expansions throughout Southeast Asia:

Licensing "Forsaken World," "Battle of the Immortals," to Indonesia

At the end of December 2010, Perfect World signed an agreement with PT. LYTO and PT. Buana Online Internasional to license "Forsaken World" and "Battle of the Immortals" to Indonesia, respectively.

Launch of "Battle of Immortals" in the Philippines, Singapore, Malaysia, Thailand

Similarly, the company signed with Cubinet Interactive Philippines Corporation, AS Online Sdn. Bhd, and Digital Connect Co., Ltd. To license "Battle of the Immortals in the Philippines, Malaysia and Singapore, and Thailand, respectively.

The Philippines, Japan, South Korea, Malayasia, and Singapore are participating in the Manila Game Jam from January 28^th to 30^th at the University of the Philippines Information Technology Training Center (UPITTC). Some highlights include a competition to create a new game within 48 hours, and the winner gets their game published.