FOR IMMEDIATE RELEASE:
VIDEOGAME MARKET IN CHINA EXPLODES DESPITE PIRACY MARKET
FORECASTED TO BECOME $2.0 BILLION BY 2009
San Francisco, CA - March 21, 2005 - Niko Partners, a
leading market research firm, today announced that the
videogame market in China is experiencing rapid growth,
particularly in the online games segment. According to a new
report released by the company, online games revenue is
forecast to reach $2.0 billion by 2009. Additionally, China
had 28.8 million gamers in 2004 and Niko Partners projects
that number to grow to 55.5 million gamers by 2009.
“Online games are emerging as the preferred platform for
gamers and publishers” said Lisa Cosmas Hanson, Managing
Partner. “The online game platform is an excellent solution
for the Chinese market, meeting the consumer demands for
social interaction, entertainment, and intellectual
stimulation. It also meets the needs of publishers because
revenue is earned from fees gamers pay to play games, rather
than from purchases of game software units that have long
been the victim of piracy in China.”
Niko Partners projects that the online games market will
rise at a compound annual growth rate of 33.8% from $467.8
million in 2004 to $2.0 billion in 2009.
Currently, all online games are played on a PC, and half of
all game play takes place in the 350,000 Internet cafes
across China. Internet cafes provide online access at a low
price point while also offering a social venue that drives
much of the demand for games in the Chinese market, Niko
Partners reports. The firm also reported that the next
generation of consoles will offer increased online
functionality which will augment the existing online
infrastructure. Niko Partners predicts that by 2009, 91% of
console games will be online games.
Getting into the Chinese market as a foreign videogame
company can be a challenge. The government in China welcomes
international investment in the growth of a domestic games
market, yet regulations governing the videogame industry are
difficult to navigate. “Foreign videogame companies need to
adapt their business models to make them appropriate for the
demand of the Chinese market and the restrictions on content
by the Chinese government,” says Ms. Hanson.
With China projected to have 55.5 million gamers by 2009, it
is important for videogame companies to prioritize
understanding in order to capitalize on this growing market.
The 2005 China PC, Console and Online Video Games Market
Study by Niko Partners is a comprehensive review and
forecast of the 2004-2009 total games market. Niko conducted
366 interviews in ten Chinese cities of Internet cafes
managers, retailers, developers, publishers, online game
operators, and videogame industry executives. The report,
published today, is 75 pages in length and contains both
quantitative and qualitative analysis on the Chinese
videogame market.
ABOUT NIKO PARTNERS
Niko Partners is the leading research firm focused on
providing specialized market intelligence on China’s
video game industry. Founded in 2003, the firm conducts
syndicated and custom research studies on
Chinese gamers, online games, offline games, consoles,
handhelds, regulatory issues, piracy,
development, online operators, distribution, and retail.
Niko Partners also offers consulting services
including focus groups, partnership selection, market
opportunity analysis, custom surveys in cities
throughout China and customized data analysis. The goal of
the research and strategic advisory services
is to help understand the market, strategically enter or
expand market share, and continue to profitably
grow within China. The company is based in Silicon Valley
and Shanghai, and its clients include worldwide
leaders in game software, hardware, and services, as well as
hedge funds, media companies, trade
associations, and management consulting firms, all of whom
have a vested interest in a thorough
understanding of China’s video game industry.
# # #
Contact:
Sean Kauppinen
International Digital Entertainment Agency
415-299-2156
sean@ide-agency.com
|
|
