Posts Tagged ‘Shanghai’

China says ‘No Way José’ to foreign investment in online games industry

Tuesday, October 13th, 2009

It’s quite possible that the Chinese government would like to keep this one on the down low, it’s been revealed that they’ve officially cut off foreign investments in their lucrative online gaming industry. Apparently, the move is to strengthen the governments’ control and oversight of virtual worlds.

g228586_chinese-flag-640The General Administration of Press and Publication (GAPP), China’s video game industry regulator and overseer, released a paper on Saturday stating that the government will now prohibit the investment of foreign funds and interest in domestic online gaming operations. This ban is includes joint ventures, wholly owned enterprises and cooperatives.

If the phrase ‘joint venture’ and China rings a recent bell, you’ll recall that the holdup for millions of Chinese World of Warcraft players was due in part to Chinese regulators that were concerned over publisher Blizzard’s provisions of technical support to NetEase, the Chinese game developer that earlier this year won the lincense to operate the title within China. This new directive seeks to cover this issue but also stating that foreign firms will no longer be allowed to “influence Chinese gaming firms through agreements or technology support.”

With China having one of the world’s fastest growing online gaming markets, with, according to the GAPP, growth estimates projected at anywhere between 30 and 50 percent this year to a whopping 24 – 27 billion yuan ($3.5 – 4 billion), it’s easy to see why investors would want to get involved.

What’s important to keep in mind here is that the timing of this announcement couldn’t be better for the Chinese government. With the GDC: China taking place in Shanghai, China is currently playing host to some of the most important and influential decision makers in the industry. A coincidence that they chose the day prior to the official opening day of the GDC to make the announcement? Highly suspect.

Ultimately, as the decree states, foreign investment has been cut off to games and publishers that operate in the Chinese domestic market.  It’ll be interesting to see how this effects gaming powerhouses such as Shanda, which have a number of partnerships and joint ventures currently in operation.

 

CDC Games brings “green online game” Digimon to Chinese market

Friday, September 26th, 2008

Demonstrating their commitment to “green online games”, CDC Games has recently announced that they have acquired distribution rights from SK Telecom to operate the successful Digimon RPG in the world’s largest market for online games.

“Green online games” in China refers to games with content that is considered to be healthy, non-violent, non-pornographic, and non-addictive.  The program is lead by the PAC Game Committee in an effort to combat the growing problem of internet addiction in China.  Li Jianguo, vice-chairman of the National People’s Congress states, “Internet-addicted teenagers account for about 10 percent of China’s web users under the age of 18.”

Striving to find the right balance in free-to-play games and meeting the “green online games” theory, CDC Games launched Digimon RPG yesterday.  The game is an online role-playing game based on the hugely successful Japanese television animated series.  Digimon has been aired in China since 2001, and Digimon Adventure and Digimon Adventure 02 can be seen on six channels throughout the Chinese market, including Shanghai, having a market reach of over 100 million viewers in 20 major cities.

“We are very excited to launch Digimon RPG, a major new “green” online game for gamers in China,” said, John Huen, chief operating officer of CDC Games. “We expect the TV series airing in China will help to further heighten awareness for Digimon RPG and help position this healthy and non-violent online game for growth in the world’s largest online market.”

Initially launched four years ago in Korea by it’s creator DIGITALIC, Digimon is a fully tested and ready to go free-to-play title for the Chinese market.

“We are very excited about the launch of Digimon RPG in the world’s largest online games market,” said Yongbo Cho, Convergence Game Business team leader, SK Telecom. “With CDC Games’ impressive games infrastructure in that country and its successful track record in the free-to-play online games market there, we believe Digimon RPG will be very successful in China.”

Players collect and train virtual monsters called Digimon and battle against other players.  Players initially select Tamers and a starter Digimon and battle other Digimon until level 11.  At this point they may begin capturing even more wild and exotic Digimon to fight with.  In order to enhance their chances of catching additional Digimon, players can purchase nets and hunting equipment from the online store.  As with most popular free-to-plays, players may also access the item shop to purchase custom clothing for their avatar.  CDC has also stated that players will be able to trade with each other, but no word back from them is this will be a straight trade, or a player-to-player marketplace.

If a ‘fighting’ game and the “green online games” theory of non-violence has you scratching your head a bit, you’re not alone.  CDC Games defends their position with the statement,

“Since the battles between Digimon are generally non-violent (fallen Digimon will have small birds flying around their heads), this online game is suitable for young gamers. The game also teaches a positive message to gamers because the children (i.e. Tamers) are helping the Digimon to defend the digital world, as well as the real world from evil forces. Many of today’s games involve more ambiguous enemies so fighting the evil forces is very straightforward and a more worthwhile goal for young gamers.”

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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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THQ to bring ‘Dragonica’ to North American market

Sunday, September 21st, 2008

It looks like THQ is wasting no time in getting the new Shanghai office into the game.  They’ve recently announced a joint venture in cooperation with ICE Entertainment to bring Dragonica to the North American market in 2009.

Dragonica will be a cartoony, sticky sweet, side scrolling game that is free-to-play and supported by pay-for-content micro-transactions.  The game was developed by Korean design house Barunson Interactive Co.  Dragonica has spent sever years in the development shop, and is finally ready for it’s coming out party.  With 3D rendering, new cartoon characters and scenery modeling, Dragonica promised to raise the bar on traditional side scrolling games.  The game mixes elements of action and arcade, and creates various skills to enhance play.  ICE realized the potential of Dragonica, and has the exclusive rights to operate Dragonica in China.

ICE’s CEO Sun Tai is the former CTO of Chinese major player, The9, a leading operator of Chinese online games including World of Warcraft.  This joint venture will combine ICE’s online operating expertise and THQ’s product development and retail experience to create a new platform for the North American market.

“We are extremely excited to be working with ICE Entertainment to bring this free-to-play, micro-transaction-based online game to the robust yet largely untapped market for online casual gaming in North America,” said Doug Clemmer, president of THQ’s casual gaming subsidiary. “We are even more pleased to be building a strong and mutually beneficial relationship, which we hope will lead to additional opportunities to deliver online gaming content globally.”

“We are looking forward to combining THQ’s extensive marketing and retail expertise with our advanced technology and proven online game operating know-how to deliver a great new casual gaming experience for North American consumers,” said Sun Tao, chief executive officer, ICE Entertainment. “We also look forward to working with THQ more closely to develop new games and explore future publishing opportunities in both markets.”

Current estimates of the North American casual game market peg it at approximately $2.2 billion by 2013 (DFC Intelligence).  In 2007, China’s online games market clocked in at a whopping $1.7 billion, and reached 42 million gamers.  According to Niko Partners, this market is expected to balloon to $4.2 billion by 2010.

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Turbine lands $40M in financing via Time Warner and CGV Capital

Thursday, June 5th, 2008

Turbine Inc. makers of top titles ‘The Lord of the Rings Online’, ‘Shadows of Angmar’. ‘Dungeons and Dragons Online’, and ‘Asheron’s Call’ have sealed a $40M financing deal with top investors Time Warner Inc. and CGV Captial.

Time Warner Investments target non-control strategic investments, and is an integral part of the Time Warner parent company, a leading (if not THE leading) media and entertainment company in the US.

CGV Capital is a leader in expansion-stage venture capital investments in the U.S. and China.  The firm manages over $1B in global capital from it’s offices in Silicon Valley, Shanghai and Singapore.

“Our investment in Turbine is an important addition to Time Warner’s entertainment initiatives,” said Rachel Lam, Senior Vice President and Group Managing Director of Time Warner Investments. “Online interactive
entertainment is a huge growth market and we are very excited about Turbine, its unique capabilities and the obvious opportunities that exist with our own broad portfolio of IP.”

“The demand for massively multiplayer online worlds is exploding both geographically and in terms of platforms served,” said Hany Nada, managing partner, GGV Capital. “Turbine is a proven leader in massively interactive online entertainment and the incredible technology that supports it. We look forward to marrying our strengths both here and in Asia with Turbine’s unique capabilities.”

Turbine CEO Jim Crowley says, “This is truly an exciting time for Turbine. The addition of Time Warner, one of the world’s largest media companies, and GGV Capital, one of the financial community’s most sophisticated investors, adds a level of access, perspective and experience to Turbine that is singularly unique in the global online entertainment space. Turbine has an extraordinary team, incredible technology and a growing portfolio of games based on some of the most popular brands ever created. With this funding we are uniquely positioned to change the future of online entertainment as we bring new titles to market, expand the platforms we support and introduce new technologies to sustain self-evolving game worlds.”