Saturday, December 25, 2010

Facebook has serious competition in China

You would think that the Chinese would be grabbing hold of Facebook and Twitter as fast as they have with our sports, clubbing, and other Western-style decadent cultural influences. They love American-everything. Yet Facebook and especially Twitter are but Pinto cars to China's fast growing Social Networking giants, RenRen and Qzone. Kaixin001 and 51.com round out the four social networking giants in China.

I've spent much of the Christmas holiday chatting with friends from all over the world on dozens of social networks. Nearly every week I find another social network, never mind the games found on those networks. Sure, you could use a select few to connect to virtually everyone around the globe, but just about each country has their own networks that often cater in special ways (language being the primary) that simply aren't offered on others.

RenRen in China is particularly an interesting case. Originally called 'Xiaonei', it's almost a virtual copy of Facebook. That's not really surprising in itself, considering that China copies quite a bit of Western technologies and ideas. They split off from the core technology and get rather unique in how they market the product, considering it a way to restore long-lost friendships and discover the true inner core of one's person through connecting with strangers in nearby cities.

Kaixin001 has been marketed more toward white-collar works and social games than RenRen's friend factor. For the past few years, Qzone has connected closely with QQ, China's primary instant messaging service, and has become a major social network for young teens and particularly rural users that may have spotty internet connections (which isn't a surprising element in even China's urban centers). 51.com used to be more popular than all the others, but has since begun a rapid decline back in 2008.

If you want to hook up with someone from China, Qzone is the way to go, for now. It has the largest social network by far and a great way to hook up with those already using the QQ instant messaging service. However, don't expect it to be an all-in-one service like Facebook that provides a lot of interesting games on the side. It is also weak on more in-depth search capabilities for university students looking to share information. Go to RenRen for that.

Much like Facebook is fast becoming an all-in-one giant in the West, RenRen is increasingly becoming popular for a wider range of users in China and nibbling at Qzone's market share. It may not be long before RenRen encroaches on Facebook's territory and an interesting international social networking war begins. The irony is that Facebook started as a university networking tool, while RenRen is becoming one in the end.

Sunday, December 12, 2010

Chinese exporting an increasing list of games

Games are one of the few mediums of entertainment in the West where the influence of the East has been profoundly felt. Nintendo, Sega, Square-Enix, and countless other Japanese game companies have been in the enviable position of actually shaping the tastes of western gamers for decades. Although that influence has waned—in fact, there has been much talk of a game development crisis in Japan—no one would bother denying that the way we game today owes as much to Japan as it does to native influences such as Atari, Activision-Blizzard, and Zynga.

And while Japan may be stumbling, no one questions that China is on the world superpower fast track. Could this be the next Eastern game industry giant? China is already the world’s largest gaming market, and an emerging tech powerhouse. The phrase “Chinese Exports” usually conjures images of plastic widgets slathered in toxic paint, but this is more of a PR problem than a fair representation of the state of Chinese product development. Anyone with real knowledge of the market forces (skilled workforce, relatively low wages, room for expansion, government support) knows that China is already on its way to being a major player in the tech industry worldwide.

But what of games? The truth is, the wave of Chinese game exports is already underway and has been growing steadily over the last four years. Starting from two or three companies exporting games in 2006, there are now dozens of major Chinese game companies involved, many of them operating multiple games overseas. And while the blistering pace of growth in the Chinese domestic game market has slowed recently, revenue earned by Chinese game companies in overseas markets continues to grow by as much as 20% annually. As such, overseas profits are becoming a major strategy focus as the domestic market grows more competitive.

The numbers don’t lie: they are among us. But, where exactly? We have yet to see a major Chinese gaming hit to focus everyone’s attention on this phenomenon, and even moderately successful games have often avoided branding themselves as Chinese, which further reduces visibility. But they’re out there. Social game developers Five Minutes and Rekoo have been able to boast millions of monthly active users on Facebook, while Taiwanese-produced Runes of Magic has garnered praise as one of the highest quality F2P MMORPGs available. Beijing-based Perfect World (Nasdaq: PWRD), perhaps the most aggressive and forward-thinking participant in this trend, has a whole slew of F2P MMO titles and a 150-employee marketing, service and operations center in Silicon Valley. Though Perfect World’s overseas revenues have flagged recently, they still hit USD 7.8 million in Q3 2010, accounting for 7.4% of the company’s total. On a more ignominious note, the oft-ridiculed yet highly profitable strategy web-game Evony is a Chinese product. So, be warned, the Chinese invasion is on, and promises to bring dozens, if not hundreds, of new titles into the twitchy hands of western gamers with every passing year.

- Techrice.com

Sunday, November 14, 2010

China's game industry is bursting at the seams

I was reading a few articles earlier this morning about how much smaller the Chinese game industry is compared to the West's. This is changing. Soon we'll be seeing a monster of a game industry in China the likes of which hasn't been seen since the rise of electronic entertainment itself.

Like many industry's in China, growth is at 10% per year or better and outpacing many competitor's in nearly all areas. The Chinese game industry is one of the highest growth industries right now in the country. Kingsoft, one of China's big publisher and R&D investor, grew 100% last year alone. Network development costs, as well as huge salary increases, are all signs that China's game industry is growing just about as fast as it possibly can.

The burden to China's game industry right now is not a lack of monetary resources, but a lack of robust talent and expertise. Hiring is at a run-away pace and production is up in nearly every studio. They're all crying for more quality production materials, communications access, and talented employees able to get the job done.

What's made the tremendous growth especially painful is the constant shift in the attitude of the Chinese towards a certain genre of games. The last couple of years we saw interest in Massively Multiplayer Online games, specifically Role-Playing ones like World of Warcraft and Lineage 2. Now we're seeing a rather jarring shift toward more casual, browser-based games, especially as more and more Chinese gain access to the Internet from their homes instead of stuffy basement-like Internet cafes.

Even though it may seem at times that the Chinese game industry is building upon itself, it's still largely being driven by American and European companies. The Chinese game industry is projected to continue double-digit growth for the next several years. They are going to need more than ever our expertise and experience, just as much as we need them right now for raw material goods.

Friday, November 12, 2010

Asian Games begin in Guangzhou, China

The 16th Asian Games (www.gz2010.cn/en), part of the worldwide Olympic movement and governed by the Olympic Council of Asia (OCA), will has the final rehearsal for the Opening Ceremony this evening – now two days away before the Games begin.

The Asian Games are the second largest sports event in the world after the Summer Olympic Games.

Xu Ruisheng, deputy mayor of Guangzhou lauded the praise of civic and games organizers, saying that Guangzhou has “the highest standards of water and electricity supply, smooth urban traffic and air, water and living environment quality. Guangzhou is ready to extend its welcoming hands”.

Timothy Tsun-Ting Fok, vice president of Olympic Council of Asia, said that the upcoming Guangzhou Asian Games will be the best one in history.

"Guangzhou once hosted the most successful National Games, and I'm sure it will also present the best Asian Games this time. The Asian Games provides a rare opportunity for Guangzhou to showcase its brand-new side. The whole world will share this rare opportunity. The entire city of Guangzhou will enjoy this historic moment," said Fok, who also serves as the president of the Olympic Committee of Hong Kong, China.

The 16th Asian Games are ready to dazzle the three million spectators set to watch all of the competition and billions of TV viewers across Asia and around the globe with 53 competition venues and 17 training stadiums ready to go. Guangzhou city is locked down well in advance of Friday's opening ceremony, and the completion of test events for all 42 sports.

Games officials announced that a record number of doping tests will be carried out at the Games. “The Olympic Council of Asia plans for some 1,500 urine tests and probably more than 200 blood tests at the Asian Games which is expected to attract nearly 12,000 athletes from 45 countries and regions during November 12-27”, according to Zhao Jian, deputy head of China’s Anti-Doping Agency.

"The tests will be carried out according to Olympic standards," Zhao said. Testing started on Saturday in the Athletes Village and each morning a flight will carry the samples to the Beijing lab where about 5,000 tests were done during the Beijing Olympic Games.

"The negative reports return in 24 hours and for the positive ones, 48 hours," said Zhao.

The China Anti-doping Agency fielded 81 doping test officials, most of them serving the Beijing Summer Olympics, to the Asian Games as well as 11 international officials recommended by the OCA. The organizers also recruited 600 escorts and volunteers into the anti-doping force.
Games officials also announced that during The 16th Asian Games some 3,989 medals will be awarded. The medals for The 16th Asian Games take its theme from the ancient Silk Road and are a positive fusing of the Games and emblem of the OCA together with graphics depicting the Guangzhou city flower … the red kapok.

Featuring the OCA logo of the dancing dragon and soaring hawk, the medals also depicts the OCA’s shining sun visual effect through a bowstring grain design that expresses the core elements of The 16th Asian Games – the bright sun and the delicate Red Kapok flower.
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Each of the award ceremony elements have been meticulously prepared to the finest details include all of the medals, certificates, flowers, awards platform, pallets and background boards used as well as specific sizes for each national flag, timed national anthems and opening award ceremony music.

The 16th Asian Games awards bouquet will consist mainly of gladiolus, red ear crown composition, plus crystal grass, blue leaf, turtle bamboo or golden bowl anise for accent decoration.

There are 39 Asian Games ceremony work teams with 1,166 workers, 146 team workers, 380 awards etiquette staff, 250 flag-raising staff and 390 general volunteers.
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Games organizers spent one year searching across China for the young ladies that would participate in the award ceremonies. The search committee traveled to more than 110 universities and ultimately selected 380 individuals to become official Asian Games awards etiquette volunteers.

The flag raising staff come from Guangdong Armed Police Department, Guangzhou military region and Hong Kong units. When the Asian Games begin, 380 awards etiquette and 250 flag-raising staff will work together to form 23 ceremony professional volunteer teams.

Source: http://etravelblackboardasia.com/article.asp?nav=21&id=71521

Sunday, October 31, 2010

A familiar city, Guangzhou tourism prospers

I giddily explored not just the cities around China for a year, but many throughout Southeast Asia. One of my more favorite cities was Guangzhou, just north of the city I lived for a year, Shenzhen. Guangzhou had it's special charm, partly because it provided just about everything else Shenzhen didn't.

I came across news recently about the city increasing in tourism and recreational activities. One particular is the new Asian Para Games. It is a multi-sport event held every four years after every Asian Games for athletes with physical disabilities. The city is also building a new convention center for this purpose.

Not only that, but the city is also specifically building a recreational park that caters to the high tech industry. In that park will feature numerous Internet cafes and electronic stores that focus heavily on gaming. Best Buy may even make an appearance in the next few years... it already has a store in Beijing and Shanghai.

I'm not only happy to see that a city I enjoyed visiting frequently is doing so well, but that it is pushing China's frontier in electronics and gaming, not to mention good social policies. I can't wait to revisit in the next few years and participate in one of the inevitable gaming tournaments that will surely sprout up!

Sunday, October 10, 2010

Chinese gamers growing "weary of the monotony" of MMORPGs

I found this blog post at GameIndustry.biz quite interesting in terms of the social shifts we're seeing all across the world in what games player's are going after. No longer are even the Asian's content with drawn out and repetitive hardcore MMOs, once the bedrock of their gaming cafes and internet parlors.

The question I have is, how long will they last in the often even more repetitive casual market? Unless casual games change their tune, we'll see a demand for games that may start leaning more towards user-generated content than ever before. Anything to inject fresh content into games on a regular basis.

A report by Chinese market analyst Niko Partners believes that the country's gamers are shifting from hardcore MMOs towards a more casual experience, driven buy the "monotony of themes" and a need to engage with a wider variety of users.

Niko Partners, which specialises in analysis of the Chinese videogames market, believes that the casual sector will account for 30 per cent of all online gaming revenues in China by 2014, making it worth $3 billion (£1.89bn) a year.

Currently, Niko values the Chinese market at $3.8 billion (£2.4bn) a year, with casual gamers making up 23 per cent of that market. By 2014, Niko Partners expects there to be 141 million online gamers in China.

"We believe that the Chinese market has taken up SNS (social networking site) gaming in earnest, and that the hard-core gamers have shifted their preferences to include these games alongside the casual gamers who naturally appreciate them, " Niko Partners' Lisa Cosmas Hanson told GamesIndustry.biz.

"The hardcore gamers are growing weary of the monotony of themes in the Chinese MMORPGs, and they want to extend their social interactions to games that attract a more diverse user base. People want to play games that enable them to have something to bond over when chatting with schoolmates or colleagues at the water cooler."

Sunday, October 3, 2010

NetEase dominates Chinese online games providers

China is the world's largest market for Internet users by far (what market isn't the largest in China nowadays). Online game sales in China rose just over 30 percent to 27 billion Yuan last year, according to Shanghai-based IResearch.

NetEase is China's third-largest online games provider, soon to be second according to many analysts. NetEase provides games such as "Heroes of Tang Dynasty", a growing interest in many other Asian countries, and possibly soon in the West.

What's astonishing is the percentage of Western online games in China's market. For example, World of Warcraft accounted for almost 30 percent of NetEases's sales earlier this year, marketing the largest percentage by far for any single game.

American and Chinese game companies are working closer together than ever before. It was announced earlier this year that NetEase will be partnering with Microsoft in MSN's China operation, investing heavily in China's online game industry.

Microsoft wants to continue to push PC gaming, just as much as it has with console gaming in recent years. "The PC isn't dead" has been heard many times from them. Perhaps investing in China's PC dominated industry, is a step in this direction.

NetEase reference: http://www.netease.net/