Posts Tagged ‘asian market’

Chinese online gaming market to reach 64.9 million online players by years end

Monday, August 31st, 2009

With only 3 months left in the single digits 21st century, San Jose, California based Niko Partners is projecting a whopping 64.9 million online gamers under the Chinese flag by years’ end.

While this number is truly staggering, looking at the bottom line is awe-inspiring. According to Niko Partners, each of these 64.9 million gamers will spend on average $52 a pop. Pulling out the calculator, and doing a quick AxB, the Chinese online gaming marketing is in the $3.4 billion range. And remember, the Asian market is the birthplace of the free-to-play, microtransaction based gaming. This $52 on average/person comes directly from the sales of virtual items purchases, as well as advertiser supported in-game advertising.

china-internetNiko Partners Managing Partner Lisa Cosmas Hanson comments, “There’s no doubt that the market for games is growing at an incredible rate in China. The economics of the market are shifting from supply-driven to demand-driven.”

Niko’s numbers seem to be right in line with what they projected earlier this year. Documenting the Chinese online gaming market over 2008, Niko put revenues at $2.75 billion. In May Hanson commented, “China’s online market has plenty of room for growth in the next five years, and much of that growth will come from beyond the major metropolises where the number of Internet cafés, home PC penetration and Internet usage are all on the rise.”

Of particular note in Niko’s earlier study, and presumably still true in these newest numbers, Niko places 77 percent of total revenues coming from the MMO market, the remaining 23 percent coming from casual games

 

Perry predicts cloud gaming, the rise of free-to-play, and the death of single player games

Friday, February 20th, 2009

This year’s DICE event which wraps up today in Las Vegas wouldn’t be complete without video games industry veteran David Perry’s take on the current state of play, and what he sees as ‘the next big thing’. We’ve covered some of Perry’s predictions in the past, but for those out there that don’t remember or know of David Perry, he’s the founder of Shiny Entertainment which was responsible for Earthworm Jim, and Messiah to name a few along with MDK, Wild 9 and Enter the Matrix.

Taking a page from his standard presentation playbook, Perry started out his DICE talk by showing some old marketing collateral from his first computer, the Sinclair ZX81, noting that at the time the mainstream consensus was that computers would be used solely as a productivity tool. “I, like everyone else, however, used it to make and play video games,” he said.

Looking forward, Perry notes how far and fast computing technology has progressed since its humble beginnings. Specifically, Perry speaks to increased storage space and read/write speeds. He foresees a future with unlimited storage media delivered via fast, ‘available everywhere’ wi-fi. Not limiting future options just to storage, Perry also predicts cloud processing, i.e. the end of in home owned single or multi-core processor platforms.

Driving this prediction, Perry explains that he’s been looking into technology that’s powered by remote storage and processing, thus removing the need for players to own powerful software or processing power. The end goal is to deliver the final rendered frames to gamers via Flash video.

“It’s like going back in time to when we had terminals instead of desktops.”

Speaking to distribution mediums, Perry didn’t waste any time aiming a canon at GameStop, who’s COO Dan DeMatteo recently stated that the era of full digital distribution is 12 to 17 years away. Perry’s thoughts consider this timeline ridiculous, and he’s quick to point out that much of the Asian market is largely dependent on digital distribution. And we all know how the Asian market is hurting in the video games department.

With perhaps his most startling statement of the day, Perry also sees the end of single-player games. Instead, he sees free-to-play, mulit-player online games as the absolute future, “I personally think the days of single-player games are numbered. Without question, our focus is entirely on multiplayer.”

Duly noted, Perry serves as Chief Creative Officer with Acclaim, a completely free-to-play, microtransactions based game developer/distributor, so it’s fair to say that his view might be slightly biased.

Using imagery of some of the greatest game designers of all time, Shigeru Miyamoto and Hideo Kojima, Perry notes that Japan has turned out some of the best games and designers the world has ever seen, and asks, “would you be willing to bet China will never produce one of those names?”

A highly relevant question, as David warns that if and when this level of talent starts popping up in China or Korea, both areas where free-to-play is rapidly becoming the de facto business model, traditional game developers with traditional business models may find themselves on the outside looking in.

Summing up his presentation, Perry says, “The key trend is that we are going to be closer to our audience than ever before. We must listen to them at every step. … Your entire executive team must speak with them, not to them.”

Amen to that statement Mr. Perry. Got anything to say to us? We’re listening. Talk to fatfoogoo on twitter.

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Free to Play Cross Fire places CounterStrike in the Cross hairs

Tuesday, November 18th, 2008

10,000 closed beta keys gone in 10 hours?  Wow!  That’s what SilverBirch Inc. and G4Box Inc. are claiming regarding the recent launch of their premier free-to-play, first person shooter, Cross Fire.

The closed beta went live on November 7th, and runs for approximately one month, during which time, fraggers can participate in one of Cross Fire’s four hair raising game zones.  Cross Fire is looking on target for a January 2009 commercial launch, but gamers can continue to download the game for free at www.crossfire-en.com.

“The response to the English version of Cross Fire has far exceeded our expectations,” said Kevin Astle, Interim President and CEO of SilverBirch. “Cross Fire’s fast-paced action, superb graphics and compelling features have already made it a hotly anticipated game among English-language gamers.”

While already a hit in Asian markets, Cross Fire has received 1.9M hits leading up to the November 7th launch, two-thirds of which coming from right here in the US.  The Asian market version has received millions of registered players, and has an excess of 500,000 users regularly playing the game together online at any given time, all within a short nine month time period.  Not Bad.  Not bad at all.

“Cross Fire has been a huge success in China, Japan, Vietnam and other Asian markets,” said Howard He, CEO of G4Box, noting that the game is now more popular in Vietnam than World of Warcraft. “Based on the positive initial response from North American gamers, we look forward to replicating this success for the English-language version.”

The Game

Cross Fire is a CounterStrike killer in more ways than one.  The storyline focuses around two international mercenary forces duking it out for domination.  Players chose their side; either Black List terrorist or Global Risk mercenary.  They then join an online team of fellow FPSers and must work together to complete objective based scenarios.  The game features four game modes: Team Death Match, Team Match, Annihilation Match, and the new Ghost Match.  Players receive xp points based on game play and performance and are promoted through various military ranks.

The Cash

SilverBirch and G4Box will monetize the free-to-play title via a microtransaction based in-game item shop.  Here, players can customize their characters to their heart’s delight including appearance and equipment.  Both companies forecast revenue generation shortly after the January 2009 official release.

Interested players should head on over to FilePlanet to obtain an exclusive closed beta key.  Cross Fire is even sweetening the deal by offering current participants the ability to invite up to 10 friends to join them on the battlefield.  Grab this one now while it’s hot!

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World of Warcraft to receive Paid Character Customization

Wednesday, October 15th, 2008

In what could be an opinion changer for the entire online gaming industry, it now seems as though we might see microtransactions showing up in Blizzards runaway success: World of Warcraft.  Die hards of the ‘subscription or die’ model have long held WoW as the bastion of last hope in a market increasingly turning towards alternate revenue models.

WarCry has been providing excellent coverage of the Blizzcon and released juicy details about Blizzard’s implementation of microtransactions.  When WoW Production director J. Allen Brack was asked about a button found in the Wrath of the Lich King’s beta files entitled “Paid Character Customization” he initially hesitated with answering the question.  Several questions and answers later, Brack took the bull by the horns and answered the question, confirming that Wrath of the Lich King would eventually have some form of paid character customization, but that they details had not yet been worked out.

It’s also been reported that Blizzard has been investigating opportunities to monetize it’s popular Battle.net gaming service, but Diablo 3 Lead Designer Jay Wilson answered that the company has not yet decided how to approach the matter.  He did however rule out that charging for multiplayer action within Diablo 3 was out of the question.

As stated in the opening paragraph, World of Warcraft has been a flame of hope for all microtransaction neigh sayers since the business model started making waves in the Asian market years ago.  If Blizzard is now finally starting to show cracks in it’s ‘subscription only’ armor, they very well may be in the position to sway the general opinion in the ‘microtransactions are the devil’ camps.  Wow’s new patch 3.0.2 includes a number of Wrath of the Lich King prep updates including a Barber Shop in Stormwind, Ironforge, Undercity, Orgrimmar, and Area 52.  This barber shop allows for character customizations, I’m assuming much in the way that ‘Paid Character Customization’ would, with just the difference of real world money vs. in game money.  This is a brilliant move on Blizzards part to get parties interested in the entire idea of re-shaping the looks of their character.  Once Wrath of the Lich King arrives on November 13th, audiences are already familiar with the process, and the conversion from in-game money haircuts, to real-world money purple and black leather, ultra sweet looking, you don’t have one outfits for their rogue should be smooth sailing.

All said and done, let’s remember that Mr. Brack’s comment was only “World of Warcraft would eventually have some form of paid character customization”.  It’s far too early to even speculate on what Blizzard may or may not do with this option, but the game just got far more interesting to us here at fatfoogoo with this option on the table.

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THQ and Korean firm Vertigo to tackle Asian online PC market

Wednesday, September 24th, 2008

Keep your eyes pealed alert:  THQ bringing the WWE to Korea and additional Asian Markets.

THQ.  Man, no moss growing on these guys.  In addition to the Dragonica release schedule for North America next year, the Shanghai office is clearly up and running with the announcement of a late 2010 launch for WWE SmackDown vs. RAW Online for Korean PC gamers.

Tim Page and Kevin Chu are clearly takin’ care of business in their new digs at the THQ office.  The duo has enlisted Korean development studio Vertigo Games to help in development and aid the transition of a Western wrestling title into the Asian market.  Vertigo has already scored a few home runs of it’s own with the online fighter Kwonho and the MM military shooter Black Shot.

SmackDown! Vs. RAW Online will allow players to play in either single player or multiplayer mode, and take their wrestler through various matches of achievement, with the ultimate end goal of being inducted into the WWE hall of fame.  A microtransaciton model will allow all aspiring Hacksaw Duggans to purchase items, abilities and themes to aid them on their way, and customize game play.

While no official release date has been pegged for the rest of the Asian market, let’s not forget that THQ has o’plenty on it’s plate as it is.  They’ve got Company of Heroes on tap for an Asian market release,  Dragonica coming up, and let’s not forget about Warhammer 40,000.
“We are pleased to bring the #1 fighting franchise, WWE SmackDown vs. Raw, to an online format, offering gamers an immersive online experience based on the world of the WWE,” says THQ president and CEO Brian Farrell. “We view the online game market as an important driver of future growth and this new title further expands our portfolio of great games for this exciting market.”

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Company of Heroes released as microtransaction title in Asia

Sunday, August 10th, 2008

While boatloads of information was pouring out of LA at E3, it seems like THQ decided to give popular title Company of Heroes it’s unveiling in the Asian market.

Kotaku recently reported on the release, summing up what we were all thinking….how did this one get past me?  THQ’s Company of Heroes is their push at bringing the RTS game into the Asian online market.  They’ve taken the core CoH experience, slimmed it down a bit, and tailored it for online gaming.

The ‘new’ Company of Heroes is a free to play, micro-transaction based title that falls nicely inline with the Asian style of play.  Some of the gameplay changes include persistent online characters that will help you level up and carry across battles.  These ‘Hero’ units will have charged ‘super powers’ which go along with the new commander tree which includes 48 separate abilities/powers.

In order to show it’s support and dedication to the title, THQ have opened a Chinese office in order to launch the game.   A Korean version is soon to follow, and a Western version after that.

While never having an ‘official’ Chinese release, Company of Heroes already has a massive following in China.

Relic Entertainment General Manager Tarrnie Williams comments, “We know that there are at least one million pirated copies of the game in China,” noting that every time a patch is released, more than one million updates are applied from Chinese IPs – for a game that’s never been released at retail in China. In Sun Tzu fashion, THQ / Relic thinks it can turn this retailing weakness into a strength.

Williams firmly believes that the microtransaction model’s “got big legs”. James added that market hesitation (especially in the West) is primarily due to the low graphical and gameplay quality of games available in the free-to-play online space, two counts of which no reasonable players’ or critics’ jury could ever find Company of Heroes guilty of.

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