December 20th, 2013  |  Subscribe  |    |  Twitter  |  LinkedIn     
Everything you need to know this week about the games market in Asia
Every week, our analysts review dozens of news sources, from multiple countries, in multiple languages. From this, we give you the stories that are most important, and the analysis to tell you why.

Niko Partners was asked by VentureBeat to comment on a Kotaku article regarding a statement by an executive at China's Funshion online video company regarding the plans for Microsoft to launch Xbox One in China in 2014. The Kotaku post correctly identified Funshion as a division of BesTV, the Shanghai-based IPTV company that received much attention when Microsoft signed a JV with them to develop console technology. The ban on consoles was lifted in the Shanghai Free Trade Zone in September, and BesTV is in Shanghai. You can read the VentureBeat interview linked to this commentary, which says that we should wait and see what console is launched by the JV, and not jump to conclusions that it will be the same Xbox One that is sold internationally, even if it may be given the same name. Microsoft has not commented on the rumor, which is all the more reason for everyone to be patient. 

 

 
Annual Chinese Game Industry Joint Discussion

 

Chinese developers made 549 online games that were approved by regulators at the GAPP in 2013 - a record high (and there is no disclosure about the number that were not approved). Recently the Ministry of Culture said that the approval process for domestically developed games will be streamlined, though they had not spoken on behalf of the GAPP, the body that has historically been in charge of approving games prior to launch. Now the GAPP is also saying that the process will be streamlined. 

 
Ministry of Culture Regulates Mobile Game Industry

 

Marbridge Consulting wrote a good summary of a recent action by the Ministry of Culture regarding actions to be taken against specific mobile gaming companies found to be breaking the law. Here is the Marbridge text:

 

China's Ministry of Culture (MOC) has released a list of mobile gaming companies found to be engaged in illegal or infringing online cultural activities. 10 major mobile gaming platforms were named, including UCWeb's 9game.cn and Qihoo 360's (NYSE: QIHU) 360 Mobile Assistant, as well as 8 popular mobile games including Locojoy's mobile social card RPGI'm MT Online and Playcrab's mobile card RPG Da Zhangmen.

 

According to the MOC, the following were a focus of the recent investigation:

1. Mobile game platforms that include the wording "casino" in their operations, allegedly promoting gambling through mobile games.

2. Mobile games utilizing a randomized raffle during operations to induce gamers to spend legal currency or online game virtual currency to obtain online game products and services.

3. Enterprises operating mobile online games without having obtained proper licenses and permissions.

 

The recent investigation gives companies a grace period to rectify infringing activities. For companies that fail to comply within the allotted timeframe, administrative fines will be issued.

 

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Niko News is just one part of the strategy and expertise offered by Niko Partners to help our clients better understand and successfully navigate the thriving games markets of China and Southeast Asia.

Niko Partners is the leading provider of market intelligence, custom research, and consulting services focused on the games industries 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 as well as to government policymakers, trade associations, and institutional investors.

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