Zynga, Inc. filed an S-1 with the US SEC on July 1, an important step in having an IPO of its shares on a public exchange. Within the S-1 the company proclaims that it expects part of its future growth to come from overseas markets. With the excitement for SNS games in China and SE Asia, it is likely that some of that growth will come from those regions. Chinese SNS game developers will watch the IPO closely, trying to estimate valuation for themselves and determine if they can compete against such a giant in the market. Unlike RenRen, a social networking service provider that offers games as part of the service, Zynga is entirely a content company that develops online games. Zynga spectacularly dominates the SNS games space in many countries - lets watch it succeed in Asia too.

Malaysian government officials proudly announced that the country has already achieved a goal to reach 60% broadband penetration nationally by the end of 2011, and as such has revised upward the goal to make it 70% broadband penetration by year-end. The article was not clear about whether the rate refers to all sites or just households, though it most likely refers to all sites including businesses and schools. Malaysia is one of the larger online games markets in Southeast Asia, according to Niko's own research, and the rising broadband penetration is an important component for continued market growth.

The upcoming China Joy games conference, to be held in Shanghai the last week of July, will be bigger than ever. Niko Partners is pleased and flattered to have been asked to provide a speaker for two different sub-conferences. Mr. Xiaofeng Zeng will be a panelist on a panel discussing market research for games companies at the Media Forum within the China Games Business Conference. Ms. Li Jun will be a speaker at the China Games Outsourcing Conference, presenting Niko's findings to be published in our 2011 Outsourced Development of Games in China report that is published in association and at the invitation of the CGOC. Companies attending the CGOC will receive a free copy of that report to be published by the end of July.