Niko News on Chinese and Southeast Asian
Video Game Markets
Volume 72
April 2011

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Weekly Twitter Posts

Lisa Hanson to speak at Stanford's SPRIE on the innovation of Chinese online operators on April 27th 23 Apr

RenRen.com, China's 2nd largest SNS behind Tencent's Qzone, and largest real-name SNS (ex-Qzone) filed for IPO on 4/15/11 on NYSE as RENN.
19 Apr

Kaixin001's "Happy City", similar to CityVille by Zynga, had 2 million installations in the first 10 days.
18 Apr

Tencent and Intel form research center in China to develop services for tablets and gaming http://on.wsj.com/fZdNrV via CoTweet

Ironic that NetEase developed the game "Ghost Story" considering PRC censorship of ghosts and spirits in content http://bit.ly/g2X3P2 via CoTweet

NetEase launched StarCraft 2 in China yesterday for 20 RMB/month, and a free trial is allowed after registration http://bit.ly/gARGQY via CoTweet

Niko will analyze new MOC regulations for games & GAPP regs in our 2011 Chinese Games Industry Annual Review & Forecast due in April via CoTweet

The beta of SC2 in China is scheduled to start March 29th, assuming that the GAPP approves the game via CoTweet

PRC MOC said icfafe rev fell 12.9% in 2010/09 but had more users. Niko analysis: game usage in icafes fell, reducing the time spent and fees. Mar 18th via CoTweet

Lisa met with Kou Xiaowei of GAPP as well as Tuo Zuhai of MOC in Beijing today for very interesting conversations with both men.
via CoTweet

Lisa Hanson is in Shanghai and Beijing this week and the San Francisco next week for Interactive Age and GDC. via CoTweet

China's MOC has approved Blizzard's Starcraft II: Wings of Liberty for Chinese launch. The GAPP must also approve prior to launch.


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Special issue:  

MoC Requests Several Games Deleted 

A contact at the law firm Clifford Chance in Shanghai informed Niko about a recent Ministry of Culture action that is noteworthy.  Essentially, the MOC has identified 39 games downloadable from websites, and the games need to be deleted. The reason it is noteworthy is not that the MOC has singled out 39 so-called violent games to ban. In Niko's view it is remarkable that the MOC has only identified 39 foreign single-player PC games to delete but states nothing about punishing the sites that illegally distribute these (and many other) games without any attribution or compensation to their rightful IP owners. This list of games clearly violates Chinese content law, and the publishers never attempted to get them approved. But rather than punish the source that brought them in illegally, they are just forcing the source to delete the games. Here is the text as translated by Clifford Chance:

 

  The Ministry of Culture ("MOC") has recently issued an internal reply to a local authority which is in charge of the enforcement of administrative laws in the culture market in Beijing ("Internal Reply").  Although the full text of this Internal Reply is not available to the public, we note that according to this Internal Reply, 39 games are defined as "illegal games" (containing violent content) and domestic Chinese websites shall delete these 39 banned games from their websites with a deadline of 21 April 2011.  If any website fails to do so, relevant administrative penalties will be imposed on it (it is not clear what kind of administrative penalties will be applied).  It is stated in the Internal Reply that these 39 games are defined as illegal because they have breached Article 9 of the Interim Regulations on Administration of Online Games which requires that online games shall not contain any content "disseminating or promoting obscene material, pornography, gambling, violence, or content instigating others to commit crimes."
  

A list of these 39 banned games is as follows:     

 

1. Call of Duty 2

2. Call of Duty 4: Modern Warfare

3. Call of Duty 5: World at War

4. Call of Duty: Modern Warfare 2

5. Shellshock: Nam '67

6. Shellshock 2: Blood Trails

7. Grand Theft Auto

8. Grand Theft Auto: London 1969 Villains

9. Grand Theft Auto 2

10. Grand Theft Auto 3

11. Grand Theft Auto: Advance

12. Grand Theft Auto: Vice City

13. Grand Theft Auto: San Andreas

14. Grand Theft Auto: Liberty City Stories

15. Grand Theft Auto: Vice City Stories

16. Grand Theft Auto IV

17. Grand Theft Auto: Chinatown Wars

18. Grand Theft Auto: The Lost and Damned

19. Grand Theft Auto: The Ballad Of Gay Tony

20. Kane & Lynch: Dead Men

21. Kane & Lynch 2: Dog Days

22. Mafia

23. Mafia II

24. Total Overdose

25. Saints Row

26. Saints Row 2

27. True Crime: New York City

28. True Crime: Streets of LA

29. Mercenaries

30. Mercenaries 2: World in Flames

31. 50 Cent: Bulletproof

32. 50 Cent: Blood on the Sand

33. The Godfather

34. The Godfather II

35. Scarface

36. Crackdown

37. Forbidden Siren

38. Forbidden Siren 2

39. Siren: New translation

In other news, RenRen.com, the largest "real name" SNS (as opposed to Tencent's Qzone, which utilizes gamers' QQ instant messenger user names) filed for IPO on the NYSE on April 15th and has since caused a frenzy of stock prices in other Chinese Internet companies

Upcoming 2011 China's Game Industry Report

Finally, Niko is hard at work finalizing our 2011 China's Games Industry Annual Review & Five-Year Forecast report, which will be published April 30th as the cornerstone of our 2011 Chinese research subscription. Subscribe now so you can get it while its hot!


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 and Southeast Asia.

Niko Partners is the premier provider of market intelligence and custom research services focused on the video game industry in China and Southeast Asia. Since 2003 we have provided critical information to the world's leading game publishers, developers, hardware makers and game service providers. Renowned trade associations, policy makers, and hedge fund managers turn to Niko for key data on the Chinese and Southeast Asian video game industries. Niko's primary data, analysis, market models, and five-year forecast by game segments and hardware platforms help decision-makers understand market trends.
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