Posts Tagged ‘mmorpgs’

Niko Partners project Chinese online game market to reach $8.9 billion by 2013

Wednesday, May 6th, 2009

Niko Partners, a leading research firm focused on providing market intelligence about the Chinese video game industry, recently released data from it’s most recent study, citing $2.75 billion in revenue from online games in China in 2008.  The study collected data from over 70,000 points in 10 Chinese cities over the course of March 2009.  The figure is generated from this data and includes new online game market segments, strong sales of (illegal) game consoles, and 23 million PCs in China’s 170,000 internet cafes.  Based on this data, Niko Partners projects that the online game market will continue to flourish with a massive 26.4% compounded annual growth rate over the next five years, with revenues to top out close to $9 billion in 2013.

report_cover“Average spending per Chinese gamer is rising to the point where a 26% increase in gamers resulted in 61% more revenue for online games in 2008,” said Lisa Cosmas Hanson, managing partner of Niko Partners. “Niko’s conclusion is that 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.”

The 2009 Annual Review and Five-Year Forecast Report on China’s Video Game Industry, available from Niko Partners is a comprehensive survey and review of the 2008 – 2013 PC online, PC offline, casual games, social networking games, console, handheld games and hardware market.  It provides the most current and largest market intelligence of the Chinese gaming market including gamers, internet cafes, regulations, online game operators, games, hardware, distribution, retail, outsourced development, and vital info on trends in the supply and demand chain.

Highlights include:

  • Massively Multiplayer Online Games (MMOGs) accounted for 77% of 2008 online games revenue, with advanced casual and casual games making up the balance of 23%.
  • Webgames and games on social networking sites expanded the casual game segment, offering more games to new and casual gamers as well as to hardcore gamers who play MMORPGs.
  • Sales of next-generation game consoles continue to climb, though entirely via illegal imports as there has been a ban on consoles since 2000.
  • By 2012 the number of online gamers should reach 119 million, a 17.7% CAGR.

The report is now available from Niko Partners, and includes:

  • Annual Review & Five-Year Forecast Report
  • Chinese Gamers Study in 4 City Tiers
  • Six-Month Update Report
  • 10 hours of consulting time
  • On-site presentation about China’s market

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Challenge Games raises $10 Million in Series B funding

Friday, September 19th, 2008

Love is in the air in Austin.  Or at least lots of investment cash.  Challenge Online Games of Austin, Texas has recently raised $10M in series B funding.  Globespan Capital Partners spearheaded the investment, with Sequoia Capital also contributing.

Challenge Online Games, Inc. currently has two free-to-play titles; Duels and Baseball Boss.  These titles combine the collectability and trading associated with collectible card games and sports cards with the popular MMORPG format.  Both games also feature an ease of access of community applications.  Challenge Games’ Duels facebook application was the first MMORPG to be fully integreated directly with facebook.  Duels and Baseball Boss differ from traditional MMORPGs in their play style: Instead of hours and hours of marathon play sessions, both titles are designed to be played in asynchronous, short-form turns.  Meaning, each round can be played in 5-15 minute intervals, without a player feeling that they are missing out on any ongoing action.  This play format also facilitates long distance and ‘when I have time’  play vs. players from across the street or around the world.

“Challenge Games is addressing a real need in the market,” said Eugene Yoo, Vice President at Globespan Capital Partners. “Short form, free-to-play, web-based games have the potential to pull new consumers into the category. And the engaging gameplay of their titles appeals to the active casual and hardcore gamer as well.”

“We believe this funding further demonstrates that we are bringing innovation and value to the gaming industry,” said Andrew Busey, founder and CEO of Challenge Online Games. “This funding will help us accelerate the growth of our business through the development of new games, explore partnership opportunities and potentially acquisitions.”

Again, both titles are free-to-play.  Challenge Games also offers VIP memberships via subscription fees, which provide players additional benefits including the ability to purchase special and unique items and cards to enhance the overall experience.

Challenge games was founded by veteran entrepreneur and gamer, Andrew Busey.  Busey is the author of Secrets of the MUD Wizards, was instrumental in the development of Mosaic; creating iChat, and building WebCenter.  Prior to Challenge Games, Busey co-founded Pluck which enables social media on top tier media outlets including TheStreet.com, USA Today, and Reuters.

For more on Challenge Games, visit them at: www.challengegames.com

For more on Globespan Capital Partners visit them at: www.globespancapital.com

For more on Sequoia Capital visit them at: www.sequoiacap.com

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Approximately 67% of Korean users in their 20s purchase paid digital content

Wednesday, September 3rd, 2008

According to a new study compiled by Pearl Research and recently published by Research and Markets, approximately 67% of Korean users in their 20s purchase paid digital content.  They forecast that the Korean market will exceed $1.7 billion by 2011.

While not surprising, the study found that casual games that are free-to-play, easy to learn, and can be played in “micro-slices”, i.e. games that can be played in ten minute or less segments at a time.

Some highlighted key findings from the study include:

  • South Korea has a sophisticated information technology (IT) infrastructure with 80% of households connected to the Internet.
  • Korea has one of the highest adoption rates of purchasing virtual items and micro-transactions. Approximately 67% of those in the 20-30 age cohort purchased online paid content. Of those who have purchased digital content, 91% purchased music while 39% purchased community and avatar items
  • A common strategy in Korea is the operation of large game portals that provide a wide selection of games, including massively-multiplayer online role-playing games (MMORPGs), casual, and web board games all within one convenient site. Top game portals such as CJ Internet’s Netmarble, NHN’s Hangame, and Neowiz’s Pmang can attract 500,000 to 1 million unique visitors a day. More than 11 million Korean adults visit game portals every month, according to this reports estimates.
  • While South Korea has a robust games market, critical challenges include intense domestic competition; prevalence of “me-too” or derivative titles; challenges in expanding overseas to the US and China; and rising development costs. The “Games Market in Korea” report provides an in-depth analysis of the Korean online games market and contains an executive summary; 2007 to 2011 forecasts for the online games platforms; inhibitors and drivers to growth; deep marketplace analysis; discussion of key market players, and strategic conclusions.

With all the flurry surrounding Korea’s neighbor to the west, it’s often easy to lose site of the ‘other’ gigantic market in Asia.  With a 67% purchase rate, Pearl’s prediction of $1.7 billion by 2011 could be spot on.  The question is…who’s handling all these microtransactions, and how do you and your title reach the market before it’s too late?  The answer is already staring you in the face.  fatfoogoo can bring your title to the Korean marketplace in days rather than months.  With out vast experience in multi currency transactions, fraud detection and prevention, and plug and play integration, we can help YOU today!

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MMOs need to offer more free to play, micro transaction based titles

Wednesday, July 23rd, 2008

In a recently completed survey by Parks Associates, results clearly indicate that gamers are interested in micro transaction based free to play titles.

The consumer study of 2,000+ US internet gamers found that only ‘power gamers’ have a strong interest in subscription based MMORPG services.  Social, dormant and leisure gamers were found to have significant interest in free to play, microtransaction based models.  With this increased interest, Parks Associates indicates that it would be ‘very difficult’ for a new MMO to enter the market with only a subscription based model at this time.

“World of Warcraft, with over 10 million players, exceeded expectations for subscription-based MMORPGs, but it’s unlikely any other publishers will achieve the same in the near term using a subscription model,” said Yuanzhe (Michael) Cai, Director, Broadband and Gaming, Parks Associates.

The study focused on a number of issues and the results are not entirely predictable, but rather interesting.  14% of gamers NOT currently playing an MMO said that they would be interested in starting up the fun again IF they could play the game for free.  Only 2% of the gamers surveyed would be interested in starting another MMO with the traditional subscription based service and fee.  While this may not be the results that Activision/Vivendi (aka Blizzard and World of Warcraft) want to hear, but it IS good news for publishers such as Frogster (Runes of Magic) and Perfect World Entertainment (Perfect World) that are early adopters of the new model.

The top deterring factor to traditional subscription based MMO’s as tabulated by Parks Associates is the barrier to entry in terms of time and money.  “It’s simply too high for many potential customers,” says Cai. “Free-to-play models offer flexibility, and players can choose how much they want to invest based on interest level and play patterns. Micro transaction models have the best potential to grow the U.S. MMORPG audience.”

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