Expansion of social networking sites creates opportunities for social gaming

The total number of Internet users in China has reached 404 million, among which social networking sites have a population of 191 million. Social networking sites are affecting and even changing the lives of Internet users, according to the latest Internet industry data released by the ministry. Today, the number of social networking site users is no longer negligible. And with the expansion of social network users, the next round of social game growth has brought huge opportunities for development.

It's a huge market and full of potential. Clearly, foreign companies have seen it. The ensuing RockYou, Cyworld and Zynga are a good sign.

In the 2010 CGBC speakers list, RockYou technical director and founder Shenjia's name impressively.

As one of the three mainstream game developers on SNS platform, RockYou, which is currently considering opening an office in China, is particularly compelling because it recently released or will buy news from Chinese SNS game developers. Shen Jia's trip to China is obviously of great significance.

Overseas SNS game makers are coming into China

"We are fully sure of the level of Chinese SNS game design and hope to continue to find new opportunities for cooperation." China has a lot of talented developers, and RockYou is willing to help them succeed. Shenjia said rockyou this time through the participation CGBC, is hopes can find the suitable partner in China, takes the domestic game to go abroad.

Not only rockyou, as early as SNS games in China, overseas manufacturers have been eyeing the Chinese market. With the explosive growth of the foreign social gaming industry, the domestic gaming community's focus on social games has peaked.

In the 2005, Korea's most successful community website competition Cyworld began to enter overseas markets, including China, Japan, the United States, Taiwan have Cyworld branches or joint ventures.

At the beginning of 2006, MySpace launched its global strategy. April 27, 2007, fully localized myspace China branch station myspace.cn High-profile Online, marking the official entry of MySpace into the Chinese internet market.

October 2008, Japan's first social networking site Mixi low-key release of the Chinese version SNS social Platform-Honey Show (Mixiu), officially announced into the high-speed growth of the Chinese internet market.

Recently, Zynga has completed its acquisition of challenge games, a social gaming company, while opening a Zynga Beijing studio. After the merger, Challenge Games will be renamed Zynga Austin and will focus on product development.

RockYou announced plans to work with Chinese SNS social game developers, through the purchase and distribution of games, to provide a profit platform to increase China's efforts.

In addition, the SNS boss Facebook in 2008 launched the Chinese website has been out of its active preparations into China, has commissioned a search company to find talent, and dug a number of Google Chinese executives. Recently, the news that Facebook wants to buy China's fledgling SNS website youkia.com to enter the Chinese market, has become the focus of the online games industry.

From this perspective, overseas SNS manufacturers have started to enter China's strategy, the future domestic SNS market competition subject will become more diversified, more competitive degree, the strength of overseas players can not be ignored.

Why target the Chinese market

Social gaming has a huge user base in China, which is the main inducement for overseas SNS companies to enter China.

In the 2009, the domestic social game developers and their games, represented by five minutes, hot and cool, were rapidly rising, and their social gaming products such as "Happy Farm" and "Sunshine Ranch" were so popular that they were unexpected. According to the China Internet Information Center (CNNIC), as of the end of 2009, the number of Chinese users using dating and social networking sites will reach 124 million. Among social-networking users, the proportion of users who play games for the purpose of using social networking sites reaches 27.4%. In another survey of users using multiple social networking sites every day, the data showed that 51.7% of users were playing social games.

Second, the profitability of social gaming in China is also very attractive.

Overseas, the profitability of social gaming has long been recognised: social-game developers are expected to reach $75 million trillion in annual revenue, and Playfish2009, another social-gaming developer, will have a revenue of $200 million this year.

According to Iris Statistics, 2008 China Leisure Social network market size of 190 million yuan, compared to 2007 120 million yuan growth of 64%. 2009 reached 370 million yuan, and in 2012 reached 1.61 billion yuan.

Domestic hot social Game "Happy Farm" landed Tencent Qzone Community platform, the number of gamers into a geometric multiple growth, monthly income breakthrough 30 million, and finally reached the peak of 50 million.

"The success of the happy Farm has created a new model for the profitability of Chinese online games." "said a senior game developer. "In the past, the development of an online game, the cost of tens of millions of yuan, the development cycle grew up for several years, the risk is also relatively large; and happy Farm has proved that a small amount of money plus creativity, can also be successful." ”

In addition to the traditional and single revenue model-online advertising, web games are also becoming a new exploration point of SNS websites in China. Consulting data from renowned industry research institutes, Chen a boat in the Thousand oak in its two strong SNS platform----mop and renren push, will be Low-cost Web game products (also known as Socialgame) revenue to do 77 million yuan, it is possible to become the first single quarter of billion-year income of the web game operators.

Not only that, the global competitiveness of China's social games cannot be overlooked. The globalization of domestic social games and the localization of international social games.

With the increasing importance of SNS game manufacturers, domestic SNS game developers have to deploy the strategy to overseas markets. 2009, some domestic SNS game developers abroad have been harvested successfully. Hot cool, smart star Qualcomm, five minutes and other domestic SNS game manufacturers overseas market performance is more prominent. Their "Sunshine Ranch", "Happy Farm" and other games have landed in Japan, the United States and other sites of social networking platform. Among them, the hot "sun pasture" has become Japan's Mixi platform, one of the biggest user of social games, five minutes of "happy Farm" in the United States Facebook Platform for more than 1 million Internet usage. Because of the openness of domestic social networking sites, domestic social networking developers generally believe that overseas markets will be one of the strategic priorities of Chinese social-game developers for the foreseeable future.

John Plessanz (John pleasants), CEO of the social gaming company Playdom, Crowdstar Executive Chairman Pitt Ruiland (Peter Relan), Zynga chief operating officer Vichy Machijani, slide Vice President Kaith La Bouise ( Keith Rabois, Lolapps chief Executive Cavin Stewart (Kavin Stewart), and developers of Facebook TOP10 games agree that, while social gaming still has room to grow on Facebook, But there are more opportunities than Facebook for social networking outside the US.

Overseas SNS manufacturers have already seen this situation, only to speed up the pace of internationalization, to have the world's largest number of internet users of China's development, is to maintain their global SNS industry a solid hegemonic position.

The pitfalls of entering China

According to the survey, in foreign hot-won MySpace, Mixi, Cyworld Ocean came to China after the roots, and did not adapt to China's soil and water, in China is still in a slow-heat development period. Facebook, the world's largest social networking site, has long favored the mainland market. But we have not seen its official landing in the Chinese market. From this we can infer that overseas SNS manufacturers to enter China, there must be hidden dangers.

First of all, the cost of overseas manufacturers to enter the need to control one of the links. China's research and development costs, especially in the world, are relatively inexpensive. "The price of Facebook apps sold abroad is in dollars, and the same software in China may be priced in renminbi," Sing, CEO Dai, when talking about the cost ratio of game revenue. "Therefore, it is necessary for overseas SNS manufacturers to calculate whether high cost in China will bring high income." Just as although overseas SNS manufacturers have excellent strategy, architecture, technology, products, services, applications, but not necessarily competitive localization advantages of the obvious Chinese internet companies.

The difference of cultural background will also affect the development of overseas SNS games in China. Fang, vice president of Sohu, said in an interview that foreign internet companies are destined to fail in China, and Facebook is no exception. Foreign popular Facebook and other SNS sites can become the industry hegemony, mainly because in the design concept to meet the needs of foreign users. In China, if overseas manufacturers do not fully understand China in the cultural region, the market environment and other differences, copying foreign successful experience is not through.

Domestic SNS game industry fierce competition also for overseas manufacturers to enter China set a threshold. Shenjia said that China's social gaming industry is developing rapidly, keeping pace with the international market, combining the culture of short product development cycle with the profound game origins, creating a new market with fierce competition and the fittest. Because the social system and social networking sites in different groups of infiltration, the industry is currently very competitive.

Industry reviews Teddy Boy said: Facebook with the pipe Yang Pa to Bluff, but did not understand gunpowder or China's invention. Facebook can be a pro at home, not necessarily as a hero outside. Google withdrew from China because of Printer.

CGBC has become a fast track to solve problems

SNS games both at home and abroad are highly valued by manufacturers, this is beyond doubt. At the end of 2009, a number of mergers and acquisitions, financing in the world, the domestic corresponding SNS field meeting increasing, all prove that this area has become the current Internet industry a new focus. Enhancing the social and interactive nature of the Internet will be an issue that every Internet practitioner needs to consider. Social game, as an important function plug-in in SNS community, is not only a link between Community gaming and gaming community, but also a new profit model.

2010 CGBC will invite the major well-known social game developers to the SNS and social game development, and the combination of the two issues for in-depth discussion and exchange.

In addition to RockYou founder Shenjia, IVP partner Tanaka, chief operating officer of Oak Interactive Group, director of Intel Strategic Investment, Alexander K. Marquez, GGV Capital founding partner Hanynada, Kai Peng Hua Ying partner Li Liwei and Qiming venture partner Donshau, have confirmed their presence in CGBC, And will be in the "CGBC SNS and Socialgame Forum" on global social games and their China strategy, social Games capital operation and process value-added, as well as the Chinese social game of the local strategy and global development issues such as in-depth discussion.