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The Game Market in China
DFC Intelligence, Sep 2005, Pages: 350
This 350-page report contains a comprehensive analysis of the game market in China. The report has 15 sections.
- Part I provides an overview of the key points of the report.
- Part II contains a background on China and a summary of the Chinese game market.
- Part III looks at Chinese government regulations affecting the game industry.
- Part IV provides an overview of China's telecommunications infrastructure.
- Part V focuses on piracy and issues of security and professional game players.
- Part VI looks at challenges for foreign companies entering the Chinese marketplace.
- Parts VII-IX take a detailed look at the existing and emerging game genres in China, including detailed business model analysis by genre.
- Part X contains market forecasts for the China online game market to 2010.
- Parts XI and XII have an overview of console games, handheld systems and mobile gaming in China.
- Parts XIII- XV profile 30 of the leading game companies in China and also include an analysis of over 25 companies and their activities in the Chinese game market.
Report Forecasts China Online Games to Reach $1.7 billion by 2010
This report forecasts that the online game market in China will grow from $580 million in 2005 to $1.7 billion in 2010. This does not include any potential revenue from traditional video game console or handheld systems. According to Alexis Madrigal, lead author of the report, “because of piracy concerns China has been forced to pioneer new business models for video games. The game market in China is all about online play and charging by usage. There is even a growing market for the items used in games like weapons and characters.”
With the recent introduction of Vivendi Universal Games/Blizzard Entertainment’s World of Warcraft, it has been shown that western content can have strong appeal in China. Nevertheless, the Chinese market remains extremely difficult for foreign companies. A company entering the Chinese market must compete with the increasingly sophisticated domestic Chinese game companies. On top of that, there is the rampant piracy problem, extensive government regulation and a market that is already overcrowded with products. “Because the top games in China can generate as much as $100 million a year for several years, at first glance the market looks very attractive,” says Madrigal. “However, it is clear that margins are headed down as the business matures.”
The new report, The Game Market in China, is over 350 pages and contains forecasts for China online games through 2010, complete business model analysis, extensive company profiles, a discussion of popular and emerging game genres, a look at government regulations, piracy and the telecommunications infrastructure and case studies of product launches.
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