China's gaming industry: reborn from the Internet

The Western business model of China's sleepy gaming industry has been a joke in China, and the biggest joke is Sony's Playstation2. On the afternoon of November 25, 2003, Sony China PR began to notify reporters in the form of a telephone, which will hold a conference on PlayStation 2 on 28th. No emails, no written invitations, and repeatedly reminded reporters not to speculate, all the circumstances announced on the day of the release. This is the usual hype trick for Western gaming companies, and everything seems to be under control, at least at first. Sony, however, wrongly estimated the situation. On the day of the Conference, some people reported the ideological problems of the first game. On December 8, officials in the Ministry of Culture stressed publicly that the state's ban on game consoles had not been repealed. In fact, before December 20, some olfactory-sensitive people found it bad, but most people can not think of such a big business behavior will easily become a joke, the diffuse dangerous atmosphere has not aroused the attention of everyone, until December 20 PS2 not officially listed, people realize the seriousness of the problem. Rumors began to diffuse like a virus, "December 20 night, my business sector emergency, seizure will be the sale of PS2", "PS2 was asked to prohibit sales in the north of the Yangtze River" and other news was more and more God, holding a lot of orders of dealers in the demand to take the goods of consumers panicked. Only Sony's PR department is still trying to keep calm: "PS2 delay, Release time to notify", "PS2 will be postponed to New Year's Day listing", "PS2 the first city temporarily cut to 2", "matching game temporarily reduced to 1". "Silver satin" so disappear in the crowd. In addition to policy factors, piracy and smuggling have shrunk the traditional stand-alone gaming industry by 60% in the past 6 years, according to the IDC report. From 2001 to 2007, the number of products listed in the year from 397 to 68, sales from 280 million yuan to 73.5 million yuan. The traditional gaming industry has come to a dead end in China. But it all changed because of the Internet, and in China, the game industry is equivalent to the online gaming industry. Internet activation Game One day in early 2001, Jinshan Company's well-known game development group, the head of the West Hill Qiu up a morning. He wants to see, a user pays 30 yuan per month online game "Stone Age", how to let users spend 300 yuan to buy a so-called virtual "package", then a single game is only more than 100 yuan, and this "package" inside nothing but a few commemorative version of the virtual props. 6 years later, Qiu still remembers the scene. 8 o'clock in the morning, Zhongguancun's largest electronic market in the square of Dragon Square, is already a dense mass, its scene more than any software at the time of the sale. Due to the limited number of "souvenir packs" available, "first comers". Many users have arrived at the scene at 5 o'clock in the morning, almost as arranging as the parade. After the expedition, Qiu came to a conclusion that the power of online games is too great. GoldThe mountain should be fully diverted to online games. From South Korea to visit Jinshan General Manager Lei also empathy, "Koreans all go to do online games." But will China also be popular with online games? If Jinshan vigorously do online games, affecting the "National software" this banner, affecting the WPS and other software of the government procurement how to do? In Jinshan indecision, Shanda Network Development Co., Ltd. chairman Chen chose to gamble. July 14, 2001, Chen all his possessions in a Korean online game called the Legend of Mir. Before Chen Tianqiao, there are some domestic big companies have inspected Korea Wemade Company's this game, their conclusion is mostly, the game in Korea is a three-stream products at best, developers are not what NCsoft, Webzen and other large companies, and the price is very high. The cost of signing the legend of Mir is high indeed. In addition to the 300,000 dollar authorization, there are 27% of the income split, this condition is the industry's first expensive game. For Chen Tianqiao, pay the authorized gold, the royal account only enough to pay 2 months wages, server bandwidth, etc. have not yet landed, Chen flyover has placed itself in a situation without a way back. 2 months later, a company boss sent a text message to ding lei that "legend" is over 100,000. Since September 2001, the Grand "Day" has finally come to an end, the "legend" charges the first month to recover all the costs. Then ran to Nasdaq, sneak attack, Grand box, free Whirlwind, grand in China on the internet staged a good show, and behind him, nine cities, Perfect, giants, network dragons are also listed, even then because of hesitation and missed the Golden Hill, and finally in the third year after the listing successfully listed. According to the statistics of China's press and publication department, as of 2007, China has a total of 11 online games companies, net game income of 10.57 billion yuan, the increase of 61.5% compared with 2006. The revenues of the telecom, IT, publishing and media industries, driven by online games, amounted to 40.12 billion yuan. Because of online games, the status of China's gaming industry has finally been confirmed, EA, Ubi and other world game industry giants have set up branches in China, our government has also made clear in the government report that the development of the national animation and game industry. [Next] The Internet to game learning "the role of the force is mutual", in the network changed the game at the same time, the game on the Chinese Internet has also produced a lot of impact. The grand Chen that Chinese users have been lacking the habit of paying for services, and even if they buy pirated DVDs, it is thought that DVDs are worth 10 yuan, and few people think about how much the content of the DVD is worth. In the early days of internet development, free also became the industry consistent practice, the user also formed the habit of free lunch, is the network game let Chinese Internet users form the habit of paying fees to the Internet. Some internet software began to absorb the success of online games businessIndustry models, some of which have reduced or waived software costs to service charges, while some software has been changed to free advertising fees through software. In this very typical example is Kingsoft Kingsoft PowerWord and WPS, Jinshan Company has two of the past need to pay the software on the network for free for everyone to download, when users have special needs, such as the need for special thesaurus, only need to buy special services. In addition to learning successful business ideas for online gaming, more Internet companies are starting to consider working more closely with Internet games. 2007, the perfect World according to the famous network novel adaptation of the Network game "The Sin" after a great success, each game company begins to realize the importance of literature website, not only each game company enlarges to the literature website's launch, the acquisition, and according to the network novel adaptation network game more and more, currently includes "The Ghost Blows" Popular novels have been signed by several game companies. In order to make up for the embarrassment of the lack of large games, casual gaming technology Services Limited launched a joint operation plan in 2005: One side comes out of the product, the other is a user who shares the income. As a result, in 2007, the 200 million yuan of the joint public revenue was 100 million yuan from the combined operation of the split. The success of the joint public caused by Baidu's emulation. At present, Baidu has set up a recreation center, and Shanda and other companies to carry out joint operations, trying to turn their visits into income. Since 2006, some network community companies have started to suggest that online gaming is the concept of community. With MOP, school and other community Chen that the network game is a strong community, users in the community, the rapid development of relations, and the fierce conflict. Based on the above theory, mop, school, 51.com and so on began to try to directly access online games, the current attempt is still in progress. Chinese online games affect the world at the beginning of 2004, Jinshan company Beijing headquarters came a few Vietnamese boys, they expressed the hope that in Vietnam Agent "sword Nets", one also claimed to be "Vietnam's Chen Flyover." Since June 2005, Jinshan began to help VinaGame set up a server in Vietnam, and in accordance with China's experience to establish a promotion and marketing system, September 1, 2005, "Sword Net" has become Vietnam's history of the first toll online game, And with 60,000 users at the same time online occupy more than 70% of Vietnam's market share. Since then, more and more Chinese online games have poured into Vietnam and Southeast Asia. In addition to the Chinese language areas such as Southeast Asia, the fledgling Chinese online games are even more entrenched in the United States, the world's largest market for games. "I was a little surprised to learn that the other was an American soldier in Iraq," he said. Chenfong, senior vice president of the Dragon Company, recalls an e-mail that was received in 2005. The user claims to be a U.S. soldier fighting in Iraq, bored by the military provided by the satellite broadband Internet access, and played the network Dragon Company's online game "conquest." In fact, Fujian Network Dragon Company to open up overseas markets to go back to the 2003,The company initially inspected Southeast Asian markets, including Vietnam, but the team eventually thought they knew more about the United States and "toss" it in the US market, which would be more favorable for future listings. Therefore, from the beginning of the 2003, the Net Dragon spent half a year to transform the Chinese game "conquest" into a "neutral game". After the operation, the company also found that the U.S. market and China's many different. For example, the city of Los Angeles and other Internet cafes are very depressed, so in the United States there is no "internet cafes" to promote a said, the main promotional measures is to do online advertising. In addition, labor costs are too high in the United States to do offline activities at all. In terms of sales channels, the United States does not need domestic game point cards and related sales channels, "Conquest" with credit cards and PayPal direct online payment, credit card and payment companies from each transaction 4%-5% of the Commission. According to the data provided by the company, since November 2004 the public test, the "conquest" at the same time the number of online in more than 100,000 people, the use of games free, clothing and props charging strategy, the monthly income has more than 1 million U.S. dollars. Deduct advertising and machine room input, personnel wages, net dragon in the United States operating "conquest" gross profit margin of about 70%, of which users also from the United States, Canada, South America, the Middle East and other countries and regions. The success of Chinese online games has attracted the attention of western game giants. In an interview with Western media in November 2007, EA CEO Jr said the Western gaming industry was lagging behind in the business model of making software, because "in the east, software there is free, but services are charged". EA is now planning to put a free game in the U.S. market. According to the IDC (Internet Data Center) report, China's online games in 2007 benefited 55 million of dollars from overseas operations. [Next] The wave of investment mergers and acquisitions swept China's internet industry security issues into focus according to the Jinshan Anti-Virus center from January 2003 to October 2004 virus analysis data, from 2003 to 2004 October, Trojan virus increased by more than 80% of the virus is spread through the internet and destruction. The virus has begun to become the biggest "demon" that affects users ' use of the Internet. Network virus rampant caused the hacker industry and the rise of antivirus industry. January 15, 2004, China Internet Network Information Center (CNNIC) published the 13th China Internet Development Statistics report in Beijing. As of December 31, 2003, China has a total of about 30.89 million Internet computers, internet users about 79.5 million people, CN registered under the domain name of 340,040, www site about 595,550, international export bandwidth 27216mbit/s. June 15, 2004 afternoon, Baidu Company officially announced, including Google, DFJ (one of the three U.S. venture capitalists), including 8 investment institutions, venture capital companies to Baidu's strategic financing has been completed. GOogle as one of the investors injected Baidu 10 million U.S. dollars, explore the Chinese market. August 2004, China Mobile (quotes, information, reviews) issued a ticket to 25 wireless value-added service providers, including the Air Network, China Network (quotes, information, comments), and other suspected breaches of the business. December 23, 2004, China's top national domain name. CN Server IPV6 address successfully logged into the global domain name root server, marking the CN domain Name server access IPV6 network, support IPV6 network users of the CN domain resolution, which indicates that our country's national domain Name System into the next generation of the Internet. China's internet industry again ushered in the climax of the development of February 19, 2005, Shanghai Shanda Network Development Co., Ltd. issued a notice, as of February 10, 2005, Shanda and its holding of the Horizon Media Co., Ltd., For $230 million, a network company (about 19.5% of the issued common stock) was bought through a public stock exchange. Shanda has become the largest shareholder in the form of a stake. August 5, 2005, Baidu "Nasdaq:bidu" stock officially listed in the United States Nasdaq traded, the issue price of 27 U.S. dollars, open 66 U.S. dollars, reported close to 122.54 U.S. dollars, or 353.85%. A minimum of 60 U.S. dollars and a maximum of 151.21 dollars. Hit the U.S. stock market in 5 years, the first day of the new listed companies the most. On the first-day closing price, Baidu's market capitalisation has reached $3.958 billion trillion, becoming China's largest Nasdaq-listed company. November 8, 2005, Tianya officially opened the new CN domain name tianya.cn, claiming that in order to integrate brand resources, enhance brand cohesion and inclusiveness, but this transfer for a reason, known as "the world's largest community of Chinese" Tianya tianyaclub.com's domain name was hijacked by the company's internal staff and could not be used to launch a new domain name tianya.cn. August 11, 2005, Alibaba Yahoo announced the signing of a cooperation agreement in Beijing. Alibaba buys Yahoo China all the assets, simultaneously obtains Yahoo 1 billion dollar investment, Alibaba also obtains the Yahoo brand in China indefinitely to use.