FOR IMMEDIATE RELEASE:
Niko Partners Issues Report on Outsourced Game
Development in China in 2006
Game-centric culture fosters talent, paves way for
industry growth
San Jose, CA - July 31, 2006 - Niko Partners, a leading
market research and
consulting firm for the Chinese videogame industry, today
announced results
from its latest report concerning outsourced game
development in China.
According to Niko, the cost savings and need to augment
development staff is
what drives most publishers or developers to outsource some
of their work.
The Niko survey of 20 outsourced game development studios in
Shanghai and
Beijing identified the cost savings to be in the range of
40-60% lower than
development costs in the US or Europe. The results also
indicate that the
market for outsourced game development is growing rapidly
thanks to
publishers and developers increasingly turning to China for
help with mostly
artwork-related projects, which currently puts demand for
outsourcing
studios in excess of supply.
"With the high production costs of current and next
generation titles in
2006, outsourced development of videogames is seen as a
strategic way to
offset high costs and large scale labor requirements," said
Lisa Cosmas
Hanson, managing partner of Niko Partners. "As Chinese
developers continue
to improve their skills across all game platforms, the
country has become
the primary center for outsourced game development
globally."
The Niko report noted that fierce competition for talent and
good projects
will soon lead to consolidation and will allow true leaders
to emerge among
the developers. The report also stated that there has been
little design and
complete development done in China so far, however, with
talented
professionals and a game centric culture that is expected to
change over
time.
Hanson continued: "Understanding how to identify and work
with a good studio
can be the difference between a completed job and a job well
done. China is
an emerging market, with many talented development studios.
In time, this
market will evolve even further, moving beyond artwork and
programming to
encompass all aspects of outsourced international game
development."
In addition to ongoing trends, the report focuses on several
key market considerations such as what to look for when
selecting a studio, the advantage of China compared to other
country markets, costs and risks associated with outsourcing
game development in China, and measures to secure
intellectual property within studios. The report, which
includes an overall assessment of the outsourced development
landscape, is further highlighted by a directory of 25
premiere studios handling outsourced game development.
The current research report is selling for $2,950 US and is
available by
contacting Niko Partners at +1.408.354.0888. More
information on this report
or previous reports such as The 2006 Chinese Videogame
Market Study issued
by Niko Partners in April 2006, may be obtained by emailing
Niko Partners at info@nikopartners.com.
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
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