Fighting the Online Video Game Wars in China
Fighting the online video game wars in China
1. Introduce case:
Definitions
2. Information about China:
Country profile:
China has a tremendous market for video games. With close to 40 million gamers, China was commanding $1 billion in revenue in 2007. Putting these numbers into perspective: 40 million gamers equals the total population of Switzerland, Israel, Austria, Honduras and Bulgaria combined. Today, China‘s gaming public, meaning people that play on a regular basis, exceeds the population of the entire United States. Being the second-largest country by game revenue, China is likely to be the largest online video game market in the near future.
In the 1990s, the Chinese online video game market was far from being profitable. This was because China’s average per capita national income was around $350 at that time. The average per capita national income in the US was about $ 23 000, which is roughly 65 times as much as the Chinese one. Of course daily expenses differ in both countries, but concerning the prices for a PC or a console the respective value is comparable across borders. This data indicates that it was hardly impossible for the average Chinese to afford gaming back in the 90s.
In summary, China undoubtedly has a big market, but at least in the 90s not enough people to contribute to the video games market, because of their individually poor financial situation.
political culture:
China is known for its restrictive policies which had effects on the video game market. The government has demanded that game companies put time limits on games, citing their adverse effect on the mental health of its youth. Starting in 2004, the Chinese government annually published a list of recommended games, all being domestic. As mentioned in the presentation two weeks ago about Foreign Direct Investment in China, foreign companies are required to partner with a Chinese company and operations must be located in the Shanghai Free-Trade Zone.
1. Introduce case:
Definitions
2. Information about China:
Country profile:
China has a tremendous market for video games. With close to 40 million gamers, China was commanding $1 billion in revenue in 2007. Putting these numbers into perspective: 40 million gamers equals the total population of Switzerland, Israel, Austria, Honduras and Bulgaria combined. Today, China‘s gaming public, meaning people that play on a regular basis, exceeds the population of the entire United States. Being the second-largest country by game revenue, China is likely to be the largest online video game market in the near future.
In the 1990s, the Chinese online video game market was far from being profitable. This was because China’s average per capita national income was around $350 at that time. The average per capita national income in the US was about $ 23 000, which is roughly 65 times as much as the Chinese one. Of course daily expenses differ in both countries, but concerning the prices for a PC or a console the respective value is comparable across borders. This data indicates that it was hardly impossible for the average Chinese to afford gaming back in the 90s.
In summary, China undoubtedly has a big market, but at least in the 90s not enough people to contribute to the video games market, because of their individually poor financial situation.
political culture:
China is known for its restrictive policies which had effects on the video game market. The government has demanded that game companies put time limits on games, citing their adverse effect on the mental health of its youth. Starting in 2004, the Chinese government annually published a list of recommended games, all being domestic. As mentioned in the presentation two weeks ago about Foreign Direct Investment in China, foreign companies are required to partner with a Chinese company and operations must be located in the Shanghai Free-Trade Zone.