Abstract
Pearl Research forecasts the online games market in China will exceed $5.5
billion in 2012. The market grew more than 63% to reach $2.8 billion in 2008.
These findings are contained in Pearl Research' s new 140-page “Games
Market in China” study.
Many Chinese game operators continue to be optimistic in 2009, stating that
the worldwide economic downturn has had little effect on their business. Games
constitute a small-ticket item and users have not cut back as much on this
type of discretionary spending.
Allison Luong, Managing Director of Pearl Research said, “Trends to
track in 2009 include the growth of social networking sites in China, with
over 55 million users, and their cross-pollination with games. One overall
concern is the lack of diversification with many game operators relying on a
single title for the bulk of revenues. In addition, a glut of content with
more than 200 games on the market, makes releasing a breakout hit increasingly
difficult.”
Pearl Research' s findings:
- China' s most popular online game, Netease' s “Fantasy Westward
Journey” achieved 1.8 million peak concurrent users, followed by Giant' s
“Zhengtu Online” with 1.5 million users, Tencent' s “Dungeon
and Fighter” at 1.2 million users, and Blizzard' s “World of
Warcraft” at 1 million.
- Game operators in China experienced strong revenue growth in 2008. Six
game operators, Tencent, Changyou (CYOU), The9 (NASDAQ: NCTY), Netease
(NASDAQ: NTES), Shanda (SNDA: NTES) and Giant (NYSE: GA) crossed the $200
million revenue mark.
- Approximately 70% of China' s 298 million Internet users are under the age
of 30. This group is most likely to seek out online entertainment, including
games, music, and chatting, which Pearl Research believes will drive revenues
for the online gaming market.
Pearl Research' s “Games Market in China” study provides an
in-depth analysis of the Chinese games market. The report contains 2006 to
2013 forecasts; inhibitors and drivers to growth; deep marketplace analysis;
profiles of key market players; and strategic conclusions.
Table of Contents
- Methodology
- Glossary of Terms and Abbreviations
- Defining Online Games
- Executive Summary
- PC Hardware
- Internet and Broadband
- Speed and Price of Broadband
- “The Great Firewall of China”
- Chinese Attitudes Towards the Internet
- Internet Cafes
- Demographic Profile
- Government Regulations
- Unique Characteristics of Online Games
- Online Games Marketing
- Games Market Top Trends
- Company Updates
- Seeking Content Worldwide
- New Market Entrants and Emerging Companies
- Lack of IPOs
- Rising ARPU
- Sichuan Earthquake on China' s Online Game Market
- Games Market Forecasts
- MMORPG
- Casual Games
- Casual Games Revenue Models
- In-Game Advertising
- Drivers to Growth
- Inhibitors to Growth
- Top Online Games
- Leading Game Publishers and Operators
- Giant Interactive Group
- Key Highlights
- Strategy
- Games
- Zhengtu Online
- Financial Information
- Future Outlook
- NetEase
- Key Highlights
- Strategy
- Games
- Financial Information
- Marketing Developments
- Future Outlook
- NetDragon
- Key Highlights
- Games
- Financial Information
- Marketing Developments
- History
- Future Outlook
- Shanda
- Games
- Financial Information
- Marketing Developments
- History
- Future Outlook
- Sohu.com
- Changyou
- Key Highlights
- Games Division
- Tianlong Babu
- Blade Online
- Upcoming Titles
- Financial Analysis
- Future Outlook
- Tencent
- Key Highlights
- Products
- Financial Information
- Marketing News
- Future Outlook
- The9 Limited
- Key Highlights
- Strategy
- World of Warcraft
- Games
- Financial Information
- Marketing Developments
- Future Outlook
- Perfect World
- Key Findings
- Strategy
- Games
- Financial Information
- 9you
- Games
- Audition
- Future Outlook
- Kingsoft
- Games
- Financial Analysis
- Marketing Developments
- Conclusion
- Appendix: Socio-Economic Overview, Software Piracy and Government
Regulations
- Socio-Economic Overview
- Economy
- Development in the Western Regions
- Population
- Per Capita Income
- Regional Differences
- One-Child Policy
- Gaming Centers
- Unique Characteristics of Chinese Society
- Guanxi
- Transparency and Corruption
- Software Piracy
- Internet Download and Peer to Peer File Sharing
- Physical Piracy
- Pirate Servers
- Lack of government enforcement
- Low per capita income and consumer habits
- Government Regulations
- Government Agencies Involved in Regulating Games
- Fatigue System
Table of Figures
- Figure 1: Matrix Comparing Casual and MMORPG Games in China
- Figure 2: Market Forecasts 2006 to 2013 Data Table, $m
- Figure 3: PC Sales (2005-2008)
- Figure 4: Number of Broadband and Dial-Up Connections in China
- Figure 5: Growth in Usage Rate of Gamers
- Figure 6: Age of Internet Users
- Figure 7: Frequency of Playing Games Among Internet Users
- Figure 8: What Aspects of the Internet Should be Controlled?
- Figure 9: Percentage of Internet cafe users in each city
- Figure 10: Location for online gaming (multiple-choice)
- Figure 11: Age Difference Among Chinese Internet Cafe Users
- Figure 12: Main Purpose for Going to Internet Cafes
- Figure 13: CounterStrike Online Web site
- Figure 14: EA' s FIFA 2 gameplay
- Figure 15: Sohu' s in-house developed TLBB
- Figure 16: QWD1.com screenshot
- Figure 17: ZT Online advertisements
- Figure 18: Character from Fantasy Westward Journey
- Figure 19: Online Games Market Forecast 2006-2013 Graph, $m
- Figure 20: Online Games Market Forecast 2006-2013 Data Table, $m
- Figure 21: Internet Cafe in Beijing
- Figure 22: CrossFire, one of many shooters on the market
- Figure 23: Top Online Games by Concurrent Users
- Figure 24: Top Online Games Operators by Revenue
- Figure 25: Game Operator Revenue Market Share 2008
- Figure 26: Select Operator Licensing Relationships
- Figure 27: Screenshots of 51.com
- Figure 28: Screenshots of Giant Online
- Figure 29: Screenshots of ZT Online
- Figure 30: Giant User Metrics (in 000s)
- Figure 31: Giant Interactive Title Matrix
- Figure 32: Westward Journey II and Fantasy Westward Journey Metrics
- Figure 33: NetEase Title Matrix
- Figure 34: Screenshots of Tianxia II
- Figure 35: NetEase' s Corporate Net Income and Revenues
- Figure 36: Screenshot of Conquer Online
- Figure 37: Screenshot of Eudemons Online
- Figure 38: NetDragon' s Game Metrics
- Figure 39: Top Three Games by NetDragon
- Figure 40: NetDragon' s Corporate Net Income and Revenues Graph
- Figure 41: NetDragon' s Corporate Net Income and Revenues ($m)
- Figure 42: Screenshot of Mir II
- Figure 43: Top Titles by Shanda
- Figure 44: Shanda' s Corporate Net Income and Revenues (in millions)
- Figure 45: Shanda Casual and MMORPG Metrics 2008
- Figure 46: Advertising for Sohu' s Tianlong Babu in Taiwan
- Figure 47: TianLong BaBu Metrics 2007-2008
- Figure 48: Screenshots of TLBB
- Figure 49: Duke of Mount Deer
- Figure 50: Sohu Financial Performance (In $m)
- Figure 51: Tencent Penguin Mascot
- Figure 52: Tencent' s Title Matrix
- Figure 53: Tencent' s Corporate Net Income and Revenues ($m)
- Figure 54: The Brands of Tencent' s Gaming Business
- Figure 55: Screenshot of the Burning Crusade
- Figure 56: Screenshot of Soul of the Ultimate Nation (SUN)
- Figure 57: The9' s Corporate Net Income and Revenues
- Figure 58: Screenshots of Zhu Xian
- Figure 59: Perfect World Select Titles Matrix
- Figure 60: Perfect World Financial Analysis Q4 2008
- Figure 61: Perfect World 2008 Fiscal Year Financials
- Figure 62: Perfect World ARPU, Average Concurrent Users and APA
- Figure 63: Guangyu Huaxia' s games
- Figure 64: Screenshot of Audition
- Figure 65: Screenshot of JX Online 2
- Figure 66: Kingsoft MMORPG Metrics Q3 2008
- Figure 67: Key Country Metrics
- Figure 68: China' s Population by Age Group
- Figure 69: Map of China' s Provinces
- Figure 70: Major Cities in China (Population in millions)
- Figure 71: Baidu screenshot
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