Perfect World posted impressive results for 2011, and the company's CEO attributed much of the success to their international expansion efforts including studio acquisitions and licensing of Perfect World's games globally. Now more than 25% of the company's revenue comes from business conducted outside of China. Perfect World has been the bright star among Chinese online game operators for international expansion efforts. In our upcoming report for clients regarding online game operators we will look more closely at what the domestic and international markets hold for Perfect World and its competitors. 

In the US we have Apple's AppStore and the Google Play Store, but in China there are several other competitors in addition to these two giants. One of the competitors is Meizu's Flyme Store, which recently celebrated its 100 millionth app download of Android applications. Games are a leading application for smartphones in China. 

A recent article in People.com indicates that a Chinese agency called CPPCC will try to correlate the online games played by "deviant youth" to the fact that they are deviant at all. In other words, when a teen gets in trouble in China, there may be some checking into what games they have played and whether or not they are violent or perhaps tied to the teen's deviant behavior. 

According to Game.People.com the Chinese government may decrease subsidies and tax benefits extended to online game companies that are under-performing relative to their competitors. There have been benefits extended to these "new Internet businesses" for several years, and no one expected them to last forever. This should spur more competition among existing companies in the sector.