The game market is very cold: Chinese companies are going to sea, but European counterparts want to come in.


The game market is very cold: Chinese companies are going to sea, but European counterparts want to come in.

Chinese game companies go out to Europe and want to come in.

Duan Qianqian

[In the first half of this year, the overall revenue of the domestic game market was 105 billion yuan, of which Tencent and Netease had a total revenue of 72.4 billion yuan in the first half, accounting for about 70% of the game market. ]

When more and more game companies start shipping, foreign developers are eyeing the Chinese market.

At the Casual Connect Global Game Developers Conference on November 12, many game developers from Europe expressed their hope to launch hand-games products in China, which is the largest hand-games market in the world.

The real cold winter

Small and medium-sized game manufacturers are experiencing unprecedented cold winters under the attack of two giants, namely, the discontinuation of version number and the pinch of Tencent Netease.

On March 29 this year, a notice from the former State Administration of Press, Publication, Radio, Television and Television announced that the examination and approval of the game version number was stranded. This also means that games that have not received a version number before will not be realized, so the game industry is struggling.

According to a report released by the Game Industry Committee of China Voice and Number Association, end-game revenue declined year-on-year for the first time in the first half of 2018, while hand-games grew by 12.9% year-on-year, and the growth rate of nearly 50% year-on-year also slowed down significantly.

At the same time, the Chinese game industry has already formed an oligopoly market. In the first half of this year, the overall revenue of the domestic game market was 105 billion yuan, of which Tencent and Netease had a total revenue of 72.4 billion yuan in the first half, accounting for about 70% of the game market.

Against this background, a large number of small and medium-sized game manufacturers go to sea to survive. AppAnnie data show that in the first half of 2018, nearly 200 million domestic games were downloaded in the United States, and the revenue of Chinese game companies in the United States exceeded $600 million, an increase of more than 50% compared with the same period of last year; 35 million domestic games were downloaded in Japan, and the revenue of Chinese game companies in Japan reached $400 million, an increase of more than 30% compared with the same period of last year.

However, in the view of Gao Lian Tang, the main factor that restricts the development of Chinese Games is not from outside. China's game industry is facing the biggest challenge because of its lack of creativity and faster maturity of players than developers.

"There is still a lot of room for development in China, such as emotional games, players hope to get emotional sustenance from the game. When manufacturers can't catch up with the maturity of players and can only make digital games, they have to go overseas - either enrich their product lines or find more users. Gao Lian said.

A case in point is that the last national game, Traveling Frog, was not a popular MOBA or tower, nor was it from Tencent or Netease. One of the selling points of this Buddhist game is emotional sustenance.

"China's game industry has been relatively successful in the payment model, creating a new era of free download props charges; after more than a decade of development, China's game production level is now comparable to that of big factories; China is also the largest hand-travel market in the world, but if viewed from a strong perspective, China is definitely not the world's largest. The strongest hand-swimming market may not be able to enjoy the dividends of emotional games and independent games. Chinese game makers need to build up their own capabilities in this regard. Gao Lian said.

Developers' demands

The masters of emotional games and independent games come from Europe, and Monument Valley is the most typical example.

"Stronger independent games and emotional games are all emerging in Europe, and we have recently found a lot of European teams. European culture is more profound, they can make a game with cultural details. Gao Lian said to first finance.

But there are differences between China and Europe. "Why don't you play Switch?" At the Casual Connect Global Game Developers Conference, more than one developer questioned First Finance from Germany, Czech Republic and other European countries.

When developing a mobile game, Switch is the first version for European developers, but there are few Switch players in China, but the hand-to-hand penetration rate is very high. In terms of channels, the main distribution channels of hand-games in Europe and the United States are AppStore and Google Play, but there is no market for Google Play in China. Android mobile phone manufacturers in China own application stores, together with Tencent distribution channel app treasure, game distribution becomes more complex.

"China is very different from Europe. The Chinese market is very complicated. We don't know how to do it. We hope to see more partners." PietroDeGrandi, an independent game developer from Czech, told first finance. Pietro DeGrandi plans to turn the games on Swash into hand games, preferably to be listed first in China, which he knows is the world's largest market for hand games.

Newzoo data show that China's gaming industry has maintained the world's top revenue for three consecutive years, reaching $37.9 billion in 2018, accounting for 28% of the world's total revenue.

Like Europe, China also has deep cultural accumulation. "China, Japan, the United States and Europe have a long history and many themes in the five major game sectors of China, Korea, Japan, the United States and Europe. China has a chance. We have 5,000 years of history and profound cultural connotations. Game companies should consider how to transform traditional culture into games. Gao Lian said.

In 2018, a game called Taiwu Picture Volume made independent game developers in China see the dawn. The game, which costs 58 yuan, sold more than 300,000 copies on Steam platform in a short week.

Liang Tiexin, creative director of trench games, told First Finance and Economics that the popularity of "Taiwu Painting Volume" and "Chinese Parents" made the industry look hopeful, but the industry has never done well. As an independent game developer, there are three appeals to the issuer. "The first is the royalty, if the game is only divided into parts, then the distributor is not pushing hard, the developer's income is very small, which is very unfair to the developer; the second is the promotion, we want to understand the game's distributor to push the game; the third is the operation support, many distributors used to make money with information asymmetry, but Now Channel Chamber of Commerce put down its stance to find us, then we do not need to look for distributors, to find distributors is to hope for operational support.


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