Domestic net swims the pain of entrepreneurship: 80% because of technical problems to be melted down

A recent Industry report said 2012 China's online gaming market could break 40 billion. On the one hand is a considerable market prospects, on the other hand, but the net swims into homogeneous competition, the elimination rate high Red Sea state. In order to maintain the advantage in more and more fierce competition, many domestic net swims big company like Grand 18 Fund all put the strength into the research and development, own research and development but come, or go outside looking for a person, look for a project.

In Dalian just concluded the game annual meeting, the Dragon company chairman Liu Dejian said, network Dragon developers have more than 2000 people. and has been relying on the agent of the nine city, its independent research and development center has been from the original less than 100 people are expected to expand to 500 people. Xu Yijan, the giant's network investment director, interviewed 3,000 teams last year, which means that, on average, there are 10 of them in a day, and they want to find good companies to invest in their shares.

"There are a lot of messy teams in the country, but few are able to sell the project. "See 3,000 units, really let Xu contend satisfied but not a few."

Ten years ago began to study the free engine of Xu contend, for the current domestic research and development team's survival status is also quite understanding. On the one hand he is a representative of the agency, has been out of the embarrassment of those entrepreneurs, on the other hand, as a person suffering from the pain of entrepreneurship, he also sent some advice to online games developers.

Angel Investment and withdrawal of capital online games is rife

"From the international investment community, the investment in online games has indeed fallen more sharply." Many mergers and acquisitions have taken place in Japan, where game companies have been warming up to cope with the cold snap of the financial crisis. Xu contend that China's online gaming investment is not seriously affected by the financial crisis, is still a smooth growth curve. But this year's online gaming industry a more obvious phenomenon is that some do foreign trade business boss from the net to withdraw funds. In recent years the overall investment in online games is increasing, but in the future there is a trend, the future investment will be gradually reduced, one is slowing down the market, tends to saturation; second, the same type of concept of the company more and more difficult to market, investors exit channels difficult words, the investment in online games will slowly decline. Xu contend those who are looking forward to VC young, venture capital only icing on the cake, no timely.

For the development of the game industry for a long time, the risk of the special situation, venture capital usually do not like to invest in pure research and development companies, the proportion of profits far lower than operators. "Operators, especially those with independent research and development capabilities, are more likely to invest than pure research and development teams. ”

There are many so-called "angel investors" in the market who may be willing to invest in the earlier research and development teams, but they often do not play the game industry, money is not very abundant. Do not understand the industry investment will be more cautious, they give the money is absolutely not to let the game "spontaneous labor", a problem will immediately retreat. At that time refinancing will greatly dilute the team shares, and the new VC may not like to meet difficult team. This kind of angel capital also can produce many contradictions in the cooperation, causes the project failure rate to reach nearly 100%.

The flow of talent is too large

Xu contend with their own entrepreneurial. Starting a business, the pain will follow, every day may be more than 80% of the time is not to do the game, but in dealing with a variety of chores: through a variety of ways to find investment, write a lot of information every day, but also beware of Team masters at any time job-hopping. Finally set up a team, a little money to be first sent to the research and development staff, their own suffering also have to inspire morale.

Finally found the point of start-up funds, set up the company, but also have to rent a house, buy machines, in order to map cheap with a variety of peddlers bargain. Registration procedures for the company, if it is overseas investment, to set up offshore companies, but also to engage in domestic companies, change dollars, get registered capital, run national tax, local tax, in order to avoid taxes to apply for High-tech enterprises, dual Soft certification ... It's all over. Half a year has passed, the whole person off a layer of skin.

Probably the net swims to melt down

The domestic net swims research and development "technology dies" the product is too many, 80% products just comes out has the technical question, even if IS has the experience team research and development product. Xu contend that the whole game is a chain, once there is a link out of the problem, the chain of other links again no use, still have to break.

Because many investors do not understand code and numerical planning, their judgments on a project are more emotionally inclined to look at pictures. In order to do a good job of art, some technology and planning will carry a lot of baggage, the client specifications a liter, and finally even the most high-end machine can not run. Visible, the start-up team often because of funds, capacity and other reasons, the real production of products and ideals have a big gap, but a compromise mediocre game can be in today's competition so fierce market stand out?

A research team can only get 10% split

After the arduous product finally finished, this time will begin to find operators. But every operator in the market today is developing its own game, they develop their own products are "pro-son", you want them to represent your products, to be a "son", not only to have outstanding features, but also with his "son" does not conflict. Even if all aspects of the conditions are met, he will be hard to pressure your son, and sometimes even directly to the idea of your past to the "pro-son" used.

And there's the problem of being powerless, lack of funds, poor management ability, operating experience of limited agents once signed to a large company, but also faced by the Shang, change to change the situation, most research and development team can only endure, because most of the copyright to the official online operation before payment, in order to live can only bow.

Xu contend that, at present, some independent research and development companies to transform into operators very difficult. Operating costs are now high, and if investors make additional investments, they will be given shares. Even if the product on-line operation is successful, also makes money, the development company product to sign to the operator often only then obtains 20% or so the partition. As the core of the entrepreneurial team, often in the product after the final listing, according to the proportion of shares, can only be divided into less than 10% of the income, and even many entrepreneurs for a long time are not the actual benefits. Business news reporter Zheng Jie

Case Links

10 years of a small online gaming company

"Now the commercialization of online games is very high, our investors are also patient, the general investors demand a few years IPO." "Tiancheng shengjing President Yucheson, has been in the field of online fighting for 10 years." At the beginning of this year, their company's "romantic Manor" official charge operation, up to 30,000 people at the same time online. Because of the financial crisis, the profit has exceeded the expectations of his investor boss.

Yucheson first joined the Beijing game Circle is to do a stand-alone game. Because the domestic piracy is too serious, mainly exports. He and his team usually spend six months to do a product, tens of thousands of dollars sold to others. He felt that the whole society at that time quite despise the industry, the general people feel that learned it to go to big-name software companies how good, like a bunch of rock-like nest in the underground room to do the game, it is nothing. Yucheson's first friend is in this state, on a monthly income of two thousand or three thousand, living underground in Beijing.

Since 2000, they have done online games, registered a company called Beijing Wire Line, they began to run a website, "Cola Bar" the name may be the earliest generation of netizens know. At that time, nine city is still doing community, "legend" has not come out, on the market probably only "King of Kings", "Stone Age", "network Genesis" several games, online to provide entertainment less, in the words of Yucheson, in IE browser and Netscape also pinch a shelf, They began to delve into the game products that were sold online from beginning to end. They do with the joint public platform, to find NetEase to do large-scale promotion. This is a casual gaming platform, similar to a graphical chat room, they push this free chess game platform, online users once more than 50,000, but casual games per capita ARP is far worse than MMORPG, both in the market incubation period, but also faced with high operating costs, they did not make money, Only in the industry played a number of visibility.

Because of the difficult days, they decided to change their MMORPG products. In 2003, he and his team started running a "singular domain" MMORPG product, a yearly income of 16 million, accumulating the company's original bonus. But like so many things, once the money is divided, the last "singular domain" and his "Beijing Wire line" company to sell.

"Singular domain" to "romantic Manor" in a very tortuous, Yucheson described his trip is "up early, catch a late episode." At that time the business model of online games is not so clear, and everyone's marketing awareness is generally poor, he and Unicom operating the platform called "Interactive entertainment Center", light name does not sound attractive. They do not have any funding background, but also very much hope to introduce capital, but because do not know how to estimate suitable, several times like with Sina, netease cooperation did not grasp the opportunity. And at that time did not understand the actual financial data, then talk to a company, they have quoted 6.4 million yuan, followed by the 2001 first round of the dotcom bubble burst, the sale was not made. After the business plan of "singular domain" is finished, after making a recommendation through a friend, they also finally signed a VC and voted for the money from the American red dot of my space. "Singular domain" in a short period of two years of testing, the game industry on the great changes, the biggest performance is the human cost is very high, the core talent by other companies dug away, Yucheson of course also encountered this situation.

"We missed too many chances in the middle. And there aren't many people who are really willing to go straight ahead. Yucheson said that until 2003 ago, creditors have been chasing them, and then the team can survive, then Shanda and other companies have begun to take shape, they are very much pressure, they want to find a "mother-in-law." Planing to replace the terms, their business 30 million yuan sold to Tsinghua Tongfang, their dials are also merged into a department of Tsinghua Tongfang. But he found that the discrepancy with the imagination, Tsinghua Tongfang is not based on the Internet as the main business of the company, in which not realize the entrepreneurial atmosphere. When he came out from the same side in 2005, he had only a few peers, and some of his comrades remained in the same party.

"There are fewer small teams of online research and development from scratch. Yucheson said, mostly from the team out, looking for a few colleagues, looking for a sum of money, tracing a MMORPG product, as soon as possible, look forward to the next "Tianlong eight", "Genghis Khan" is their own. The first group of people who have grown up in the online games have been carved up by various companies and have done a job as a senior executive, and many people have left in the middle. Because the first batch of people have their own limitations, the commercialization of the poor, and now the online games to emphasize the scale effect, such as pipeline production.

"Hangzhou, a lumber company invested in 2 million to a game of the demo, but then the small boss can not afford the rear of the operating costs, the program and the basic sales." "Yucheson said, compared to a decade ago in their entrepreneurial period, the current domestic research and development teams have more opportunities to invest, but the risk of running a game increased, the need for a considerable amount of capital operations, but also have to understand marketing, eventually did not get the promotion of resources flooded games too much.

MMORPG is the "Red Sea", does not have the capital advantage, marketing experience of the company, unless willing to developers, to sell grand what kind of platform. Yucheson said, now, from the net, QQ diffuse from the "steal food" products, strengthen their confidence, casual interactive game future user groups will have growth. Their "romantic Manor" borrowed from the American "Second Life" game, but also created a virtual society, players can be specific image of the way to live in the community.