are Wall Street investors bullish on China's mobile game in 2014?

July 11, "Innovation China • Search Cloud Cup Changsha mobile internet Entrepreneurship Competition" held in Changsha. The competition attracted nearly 200 companies to enter the competition, of which 40% of the company's entrepreneurs from Changsha, the organizing committee finally screened out 19 companies to face the domestic well-known investment institutions of investors, 5 companies eventually promotion, will participate in the 2014 innovation China in Hangzhou September finals. In the keynote speeches and dialogue sessions, "Entrepreneurial State" magazine executive Editor Fanghao, fun game CEO Chen Yuyu, Houle game founder Chovanri for the 2014, the hand tour industry discussed how to do after 2014 years of Hand tour, and the new entrants to the mobile internet entrepreneurs gave their own advice. The following is the Live forum record: Fanghao: Please two guests to introduce themselves, but also to introduce their own company. Chovanri: I am Houle game of Joe Wanli, our company was founded in 2011, our game is launched on the platform of Tencent Open, covering the user has been billion, called "Houle Three Kingdoms", this game is the second representative of the Houle game. We previously developed the game "Houle Hotel" every day more than millions of people playing, to "Houle three", we only in the Tencent platform has already had tens of millions of active users. We have created a lot of history in social games and the overall revenue is considerable. Chen Yuyu: Our fun games are like many game developers who come today and have layout partners all over the world. In the casual game this piece, we have achieved in the domestic full channel coverage distribution platform. For example, we do game difficult to enter the Tencent platform, and our relationship is very close, in addition to our own Tencent investment company this reason, in fact, we each issue a game will and developers close contact, and the general distributor is not the same. Fanghao: 2014 's hand Tour How to play, Wall Street capital market for China's hand-swim concept or the past thinking. In the capital this piece will also encounter prejudice, the next hand tour has more and more traditional management, began to acquire some hand tour, game team. These two big environment will cause the next hand to travel the field of pioneering company's development, in the direction, the path will change? Chovanri: We see the capital market on the domestic and foreign a little bit of ice fire two days. You do not expect a game to be able to fire for a long time, to achieve continuous operation, do not expect a game to eat a lifetime. For any game, you don't expect it to keep growing strongly. We also do not have this plan, our solution is through the multi product strategy, the continuous introduction of excellent products. A game to do a summit down, when it comes down will start to maintain a stable income. The second game is stacked up. We keep growing in this way. Houle game is to do boutique games, long product series games, this is our adherence to a direction, we believe that such a direction can overcome the situation is not favorable to foreign markets, change game companies can not maintain the status quo of sustained growth, we strive to breakThis spell. From a game developer's point of view, Houle games adhere to the boutique research and development strategy, we are also doing some boutique distribution. This is not the same as the fun Chen. We want to develop the best online games in the world and issue the new Divine Comedy, which is doing well at home and abroad. Chen Yuyu: We are more representative on this issue. We know that the fun game is the July 4 public IPO, from my experience in contact with developers, I summed up a few points. First, Wall Street investors are not so bullish on China's mobile game. As you know, there are four ways to change the flow, everyone thinks the game is the end of the end, Wall Street is also recognized in this respect. The problem on Wall Street is in the valuation of PE, in the life cycle of the game. Do not like to do the game, it has a long life cycle, can be from content into a platform, the so-called platform refers to the rhythm of the content to accelerate. Like Facebook, in the game can make a piece of money, in the network can make a piece of money, its single user value can be reflected. Wall Street ultimately judges you as a company, looking at how well you can get a single user's output and whether there is room for imagination. And the biggest problem for our gaming company is here. You are in the game, but the game has a life cycle, so the future PE valuation is limited. We got some of the star-level games that were released, like "Fruit Ninja", we turned it into a super app, we don't have a unique portal like a PC, because PCs can have desktop apps, and in the mobile Internet you're going to get two things messed up because you have phones and text messages. Second, the use of high-frequency. The last category of the game is entertainment, and there are also the first three types of games in entertainment. On the other hand, we all know that the game is cycle, hand tour is also cycle, is to see you this company has continued low cost to obtain flow and the ability to retain flow. Fanghao: You two companies in the international is still not the same, Joe is always here to keep their own children, Chen is constantly "kidnapping" children, see which children can make to improve their company income. I don't know if I can understand that? Chen Yuyu: This is complementary and equally important. The game is a content-telling thing, you have no content is impossible to have a continuous new user. Why do we emphasize research and development? You see our online "people cut fruit", recently everyone in crazy play, and the first generation of "Fruit Ninja" is a stand-alone. Chovanri: We have adopted some high quality children abroad. Chen and I always have the same opinion, pay more attention to the development of this piece, but there are different points of view, Chen always think that low-cost access to users is a very important ability, I also endorse the view, the difference is that for all the games we do now, we emphasize the importance of the revenue function. If low cost is not obtained, it can be done by means of the market. How much do you cost to buy a user, what is the cost difference in the future of your product utilization in the game?We are the company that makes the product and the distribution, especially value these. We do not have to emphasize the low cost of access to users, but we must emphasize access to the user's price difference, we want to emphasize our profit this piece, as well as our access to users. We are still engaged in advertising is very large, because we believe that our game can be through their own product quality, the final profit. Chen Yuyu: This is a model problem. A company's gross margin equals the value that all users of the company have in the app. If you can do the best at the same time, improve the app by the user. Like today's page tour, when the PC does not increment, everyone has to fight. Fanghao: Two are grassroots entrepreneurs, there is no resources, the background, almost all just by virtue of their own strength in their own field to break out. There are a lot of grassroots entrepreneurs here, for those who are coming, or just entering the mobile internet start-ups, two have what lessons, what advice to them? Chovanri: If you start your own business now, there is still a lot of opportunity in the field of mobile gaming. I feel that there are such a few: first of all, must adhere to the product is the king, your product is a good foundation for your business. is not to say that must get a sum of money, or to cheat a very big investment, you must remember, your product is kingly. Second, when making products, especially in the beginning, your resources will certainly not be very much, suggested that entrepreneurs put all the energy in a basket, first focus on a game, and constantly debug it. If you open several projects at the same time, from the mobile game, its research and development costs are very high. If you end up with all your data showing that the project is too big and profitable, you will not be able to manage it. But if you do a boutique game is still effective. Some games have the quality to do a level of data, they are still debugging, must be adjusted to the S-class to market-oriented, I think this is desirable. So, one is to insist that the product is kingly, the second is must concentrate your energy, the first time do not make the stall too big. Ten is better than a strong one. Chen Yuyu: People often say to different teams, do the first product is the first running-in team, and so the second product out, and most of the investment team to find us, we will change his idea. Once a new product comes out, as long as you are facing the user, you should be responsible for this product, because you put the starting point of this product lower, then you will be immersed in endless updates and services up. We should think more clearly about what will be developed in the future. How about the perimeter system we don't care, because this can change, but the core play is to affect the nature of this product. Especially in the hands of the tour, hand tour of the core play is the most important. The other one is that I think that the overseas market is also a good market.