China’s Forgotten Gamers

April 28th, 2008

The original article is here.

The China Angle: ‘China’s Forgotten Gamers’

The China Angle: ‘China’s Forgotten Gamers’ [Though developers and publishers like Blizzard are reporting record numbers of online players in China, in Gamasutra’s latest China Angle column, Frank Yu says the actual number of game players is drastically under-reported, and investigates the populations going unaccounted for.]

Blizzard recently reported that its World of Warcraft reached one million concurrent users in China. Every month we see data from China showing the growing population of game players that continue to go online to play games. We see Chinese game companies reporting rising revenue and plans for expansion both in and out of China.

However, as I tell friends and colleagues outside China, the true number of game players in China are actually underreported. Only a small number of the actual game players in China ever get mentioned in a report. How is that possible, you ask? The numbers are already large.

In China, we track game players by subscriber or registration numbers, or by the amount of money they spend giving companies revenue.

If they don’t register or pay money, they are somewhat invisible to the industry or, from the business viewpoint, irrelevant. I have listed some of these black holes of gaming that are quite large but have yet to be tracked in an accurate manner.

Game Play LANs

These are games played by the many of the hardcore gamers in net cafes, schools and offices after hours. They are essentially free and are hosted and administered locally, so no data or tracking goes back to the developers. In fact, only a local LAN is needed, with no actual outside internet connection needed.

I have seen many of these Gaming LANS which exist to play games like Counter-Strike, Starcraft, and Age of Empires only on the LAN. One of the most popular LAN game is DOTA (Defense of the Ancients) which is a mod-based alteration of WarCraft 3 into a Hero based action game.

I would guess that LAN games in China comprise a big chunk of actual net café use but few people outside of China realize that many players in Net Cafes are playing LAN Games and are not actually online – and also do not require an authorization key for each copy since it’s a LAN.

Speaking of which, in the past and perhaps in the present, Shanda’s Haofeng game portal, which is one of the most popular game matching services in China basically allows online players to log onto the service as if they were on a LAN. No authorization key needed either since the game thinks its on a LAN as well.

Game Play Women

Women gamers on the record comprise perhaps up to 35 percent or more of China’s gaming population, based on MMORPGs and Casual Game portal data. However, I suspect that female video gamers may comprise 60 percent or more of actual game players at any particular time.

These women don’t play MMORPGs or Counterstrike, they play Solitaire, Minesweeper, Tetris or the thousands of single player games available on the net, their mobile phones or on their PCs.

Go to shops in China and you will find Solitaire on computer screens, waiting to be attended to as soon as you have left the store. Some female favorites in China like Lian Lian Kan or Bubble Bobble clones do not require internet, just a lot of time to kill.

Game Play Young Children

Yes, young children play games too. However, many Chinese parents are quite wary of having their middle school or younger children go online alone. Aside from the usual dangers and stuff like porn exposure of going online on the wild and crazy internet, parents fear internet game addiction at an early age for their kids

This is due to all the negative press that the government releases on the danger of out of control gamers dying in a net cafés or stealing from their parents to buy virtual items.

Yes, young children do have access to PCs but usually their parents get them loads of awful edutainment products to get them started right. Anyway, many children at least of middle class families in top tier cities have their own Nintendo DS or Game Boy Advance to play with.

No one knows just how many of these very popular handhelds are in China, (I doubt Nintendo knows either) but they are the ONLY legal game console that can be sold in China right now (as far as I know) due to a JV relationship between Nintendo and a local game distributor.

Many of these young children are just waiting to be able to go to a net café (net cafes are supposed to have age limits) or get their own laptop so they can join the online gaming masses as soon as they can ditch the family PC (and parental eyes).

Game Play Old People

Yes, old people play games here. In fact, old people are more socially active in China than in the U.S. They love to play games such as hacky sack, but kicking around a feathered weight as opposed to a small beanbag. What kind of games do the seniors play? They play cards on the streets, homes, tea houses, in the park and just about anywhere they gather which means if its mostly offline.

Doudizhu (fight the landlord) is supposedly the number one card game in China, or at least in Chengdu, but few non-Chinese know this. The game does not have an exact match in the U.S. but it pits 2 players (the workers) versus the evil capitalist land owning landlord.

MahJong is a national favorite as well as Chinese Chess and Chinese Checkers (here called The Jumping Game). In China, the rules vary according to region and even by city, so it’s a matter of home pride to play by your home rules and speak in the local dialect.

With retirement and a role of babysitter for young children, many old people are being dragged into the video gaming world by their adult children, grandchildren and Wii Sports. Since many grandparents live with their children and grand children, they find that gaming, both computer and offline, as a good way to connect with the younger generation on something both can be passionate about.

Game Play Offline

Young Chinese people love playing online games because there is already a culture of game playing in Chinese culture to begin with. The concept of single player games is a bit of an anomaly that came about with card games like solitaire and early video games.

However, with online and mobile gaming, games are once again becoming the multiplayer social devices that they have always been for centuries. Whether it is something to do with old friends, ways to interact with new friends or a sly method of meeting girls (or boys), games have always been a rich part of Chinese culture from the emperors to the peasants from the educated to the farmer.

Go into most bars or KTVs in China and you will see all forms of games being played on tables and in rooms. The movie Pirates of the Caribbean actually highlighted one of the most popular games in Asia played by most young adults. Although new to many Americans, Liar’s Dice is played almost everywhere where alcohol is served.

What is strange is that China has seemed to have skipped having their own board game industry due not only to the popularity of the classics, but the sudden transition of video game technology hitting the mainland just as China began to open up.

The next time you hear about how large China’s online game population is, take note that represents only the number of people that can be tracked. China has always had the world’s largest gaming population not in the millions but in the hundreds of millions. Now they are just emerging out of the dark and going online and some of the smarter casual gaming companies are learning how to make them into customers.

The New Nomadic and Virtual Lifestyle

April 15th, 2008

The Economist has a great article about modern global nomads in the working world. Living and working in loose virtual work units, they can come together and meet using a combination of wireless technologies and new internet tools. In many ways, virtual worlds are one of those tools that will allow people to hold meetings,  visit clients and even shop for products from various locations outside a traditional office. Although we have voice communications and great text messaging devices, few things will replace a good old fashioned face to face meeting. Given the high cost of transportation and the packed schedules that everyone holds, virtual meetings and teams give us more time to …take on  more tasks.

融资策略

April 11th, 2008

今天和一个KPCB的朋友聊天谈到了融资策略,我觉得颇有收获,在这里和大家分享。中国目前投早期internet的VC非常少,可能就那么三、五家。其他的VC也多会看,但基本上不会领投。如果一家投了,其他VC跟投的可能性是有的。作为我们创业者,要首先看明白这个VC game。然后找准最有希望的几家去攻破。这样我们可以把更多的时间放到发展公司上面。找准目标之后,我们要做好明确的engagement计划再去谈。时间也不要拖的太长。VC要真的有兴趣,他们会非常积极的去推进谈判的进程。最快的两、三周就会有Term Sheet。有的VC出了Term Sheet后还会根据DD的结果更改条目,所以engagement计划也要考虑到DD的这个阶段。目前早期互联网公司融资确实很困难,所以还要有二手准备。

宋晨枫

融资在中国

April 11th, 2008

在离开微软之前很多人跟我说中国有很多热钱,融资很容易。也许在4年前是这样的,我经过这几个月来和VC的接触感觉早期项目融资还是有一定难度的。第一,如果没有内行人指导,很难真正看清哪家VC会投早期企业。第二,中国互联网确实缺少成功的商业模式,投资者都非常谨慎。第三,中国互联网用户消费习惯还未养成,并且活跃人群的普遍消费能力比较差。初创企业想拿融资不能只靠一份商业计划书和一腔热情。即使有了一个很好的团队,也未必能让VC掏钱。这对我们是一个挑战,我们必须投入所有的资源加快产品的开发。然后用产品和用户体验吸引投资。当然,一个可行的商业模式也是至关重要的。

对我们来讲,我们的核心竞争力是产品和运营。现在我们已经打造了一个具有国际水准的非常优秀的核心团队,产品也在不断完善。我们这一阶段的融资快该到一段落了。

宋晨枫

国际化团队管理的挑战

April 10th, 2008

在一个国际化的团队里,由于员工文化背景和工作经历的不同,管理者也必须能够调整自己的管理风格才能达到最好的效果。 我们团队里有三个美国人,一个印度人,其余的是中国人。虽然不能一概而论,但有过国外生活工作经验的同事更喜欢Hands Off管理方式。你给他们一个任务或问题,他们会比较主动的去寻找答案解决问题。你过多的去指导他们的做事方法反到会造成不好的效果。反过来更多的中国同事会比较习惯于有具体的指示和引导。这当然都会因人而异,有些外国同事同样需要很明确的要求才能最高效的完成任务。这些看似浅显易懂的常识在现实的工作中并不是很好掌握。对一个管理者最重要的一点是了解团队主要人员的做事风格,并能在发现冲突时主动的沟通并及时调整自己的管理方式。作为一个员工,你如果发现你不喜欢你老板的管理方式,首先也要明确主要矛盾,然后找时机去和老板沟通。做事习惯在短时间内也许很难改变,但成功的管理者一定会尽力理解问题并做主相应的调整。我相信优秀的员工也能很好的调节与老板的沟通与做事方式而更加高效的完成工作。

随便写写心得,希望能启发和我在同样工作环境中的朋友们。

宋晨枫

We know the web and MS

April 10th, 2008

Given that a few of us here at eCitySky were from Microsoft either as full time employees or as interns, it would be fitting that we are asked for our perspective on the web and Microsoft.

This interview is from China Radio International which is like the Voice of America for China and beamed to several countries every day.

The Interview on Beijing 91.5 FM CRI

“It’s a world-leader in computer software technology, and it’s looking on getting its hands on one of the global leaders on the web. This week, internet giant Yahoo! said that it is now willing to talk about a possible takeover by Microsoft. This follows weeks of attempts by Yahoo! to join forces with other competitors in an attempt to thwart Microsoft’s unsolicited offer, which was made in January.”

Partnering with The Beijing Film Academy

April 8th, 2008

For a couple of weeks now, we have been working with a class in the famous Beijing Film Academy to make 3D content. The class is learning to work on a design project with a real world client under real world conditions. As their client, we give them a set of requirements and a specification sketch of what we want. Its up to the class to follow our specifications and deliver a finished product on time and on spec as we dictate. The class has been working very hard to meet our demands and they look forward to the challenge of proving themselves as professionals.

Usually, a few of us trek on over to their class on Tuesday morning and check on their progress. Today, they came to our office and gave us an update on their models and challenges. They were able to meet some of the 3D developers directly and give them feedback on the spot.

eCitysky and BFA

  • eCitySky begins to blog

    April 8th, 2008

    Although there have been several mentions of us on the internet already, we will now begin to give updates on our progress and status. We will also use this space to provide relevant links and excerpts to what we think looks interesting in both games and Chinese Internet.

    We welcome your feedback and comments but please bear in mind that this is all still a work in progress.

    -frank

    Hello World!

    March 18th, 2008