Startonomics Beijing - June 11, 2009 Frank Yu, CSO/COO, Shouji Mobile Entertainment

1. History, Overview and
Trends of Online Games in
China
(in10 minutes)

2. •Chinadotcom Ion Global (CDC)
•Principal Researcher Wireless and Games
•Microsoft Xbox (PC Games, Mac, Peripherals)
•First Asia Regional Business Manager
•Microsoft Research Asia
•Researcher Asia Cnter for Interactive Design
•MS IE 7 /MS Media Center
•Program Manager
•MS Casual Games
•Producer / Started first game team in China
•Shouji Mobile Entertainment
•CSO/COO
Columnist
•Gamasutra (China Games)
•South China Morning Post (Beijing Byte)
•China Tech News
•Asia Pacific Management Forum

3. Only about 10 years old as an industry
Born from rampant piracy and low disposable income
Similar to Korea in industry development and market
3 Waves but all still operating
Licensing / Portals / Korean-Taiwanese Games
(2000-2003)
China MMORPGS / Communities (2003-2007)
Web Games/SNS (2007-Present)
China Online Games becoming mainstream media
Youth Media
Regulated

4. Korean/China MMORPGs hierarchical and structured
China /Korean follow 80/20 rule
China Game market regulated like Korea
Console ban
.PC type games and UI (one handed gaming so players can smoke)
China and Korea gamers love Blizzard
Starcraft, Warcraft, Diablo (1 and 2) and DOTA are all still favorites on
LANs because they are well designed and free in Internet Café/Bangs.
WoW benefited from player familiarity

5. Subscription Service based
Localized and operated locally

6. Sohu (spun off online games unit twice)
Sina
Netease
Shanda
Kingsoft (China’s MS made no money on
productivity software but profitable on games)

7. •Free to play
•Monetization from avatars
•And virtual goods

8. •Free to Play
•Virtual Items
•Avatars
•Special Levels
•Appeals to women
•Audition
•Kart Rider

9. Chinese game companies have
Created their own versions of
Korean advanced casual games

10. •Zhengtu Online shifted the industry
•Online/ Offline Event based gaming
•.Cafe Channel marketing and promotions
•Designed to be addictive/gambling
•Perfect World
•Export MMORPGs tech/licenses
•Blizzard/the9
•First to break ban on broadcast adv.
•Western game design and backstory
•Pre-paid cards

11. Kaixin001
Parking wars
Friends for sale
Trevian & Clones
Browser vs. Client

12. Main Overseers
Ministry of Culture
Ministry of Information Industry
General Administration of Press and Publications
Also…
State Administration of Radio, Film and Television
Ministry of Commerce
Public Security Bureau
JingJing and ChaCha Internet Cops

14. Virtual transaction / avatars
Business model impacts game design
Games as Media and Social Facilitators
Games as FMCG consumables
Channel marketing
Online and offline events
Fill lifestyle role

15. Contact:
Frank.Yu@ShoujiMobile.com
FrankYu@Gmail.com
Twitter: Frankyu
Thank you