To view in a browser, http://www.pearlresearch.com/newsl/0410.html | Unsubscribe link at end of page

Pearl Research Newsletter
 

In This Issue - April 2010

+ Feature: Online Games Market in China up 35%
+ Game conferences in Seattle and Los Angeles
+ Select articles from Pearl Research's news site
+ Research studies available


     
 

Feature - Online Games Market in China up 35%
Pearl Research forecasts the online games market in China will exceed $6 billion in 2012. In 2009, the online games market grew 35% to reach $3.9 billion, which is on top of a 63% increase in 2008. These findings are contained in Pearl Research’s new 160-page “Online Games Market in China” study.

To download the study's table of contents, please click below. Contact us for an excerpt:
http://www.pearlresearch.com/files/TOC_PearlResearch_Chinareport_201004.pdf


Similar to the US, a major trend in China is the growth of social networking sites such as QZone, Renren and Kaixin001, all of which host social games, which is discussed in the report. These games are starting to cannibalize some of the advanced casual games on the market.


Pearl Research’s findings:
- China’s most popular online games, which achieved more than 1 million peak concurrent users include NetEase’s “Fantasy Westward Journey”; Giant’s “Zhengtu Online”; Tencent’s “Dungeon and Fighter” and “Cross Fire”, and Blizzard’s “World of Warcraft”.


- Game operators in China experienced strong revenue growth in 2009. Top game operators, in descending order, are Tencent with $792 million in revenue in 2009, Shanda Games(NASDAQ:GAME) with $704 million in revenue, Netease (NASDAQ: NTES) with $493 million, Perfect World (NASDAQ: PWRD) with $314 million and Changyou (NASDAQ: CYOU) with $268 million in revenues.


- Virtual currencies are under increasing scrutiny with a series of laws designed to tighten their use. This includes regulations that virtual currency should only be used to purchase virtual items. In addition, online game operators are not allowed to give out virtual items or virtual currency through lottery-based activities. The Pearl Research study contains a special section on virtual currencies and their increasing regulation from the Ministry of Culture and Ministry of Commerce.

- The number of Internet users in China reached 384 million as of December 31, 2009 for a 29% penetration rate. Approximately 70% of China’s million Internet users are under the age of 30. This group is most likely to seek out online entertainment, including games, music, and chatting, which Pearl Research believes will drive revenues for the online games market.


Pearl Research’s “Online Games Market in China” study provides an in-depth analysis of the Chinese games market. The report contains forecasts for MMORPG and casual games; inhibitors and drivers to growth; deep marketplace analysis; profiles of key market players; special sections on social networking sites, analysis of virtual currencies, and strategic conclusions. Please call (+1) 415-738-7660 or email research (at) pearlresearch.com for more information about this study.

To download the study's table of contents, please click below. Contact us for an excerpt:
http://www.pearlresearch.com/files/TOC_PearlResearch_Chinareport_201004.pdf

   

 

 


 




Subscription Services


Please contact us about our subscription and retainer programs which includes access to exclusive research

- Digital Music

- Asia Pacific, Latin America and other emerging markets

- Online Games Market

- Casual Games

 

 

 




Pearl Research's Redline News Site

Pearl Research operates a free updated news site at Redline covering the latest in technology and digital entertainment news and analysis. Our latest articles in April 2010 include:

Playdom Announces Acquisition of Three Melons

Linden Lab Improves Second Life

Perfect World Announces First International Acquisition

The9 Pays $20 Million for Stake in Red5

Google Tops Most-Visited Site in the US in February 2010

Readers can subscribe on the website to a weekly newsletter.


Pearl Research is pleased to be a media partner with these conferences:

LOGIN Conference, May 10-13, 2010 - LOGIN is the conference for leaders and innovators of the online game industry. This annual conference hosted in Seattle each May brings together industry leaders to discuss, collaborate, and share advancements about technology, design, business, community and legal areas of online game development.

LOGIN 2010 features three and a half days of online game development lectures, panels, and roundtables, renowned local and international industry speakers, facilitated networking activities, parties, keynote lunches, meetings and an exhibition area. The conference has an international attendee list of more than 500 of the most influential, forward-thinking leaders in the business of online game development. Please visit http://www.2010.loginconference.com/ to register and view a complete schedule.

LA Games Conference, April 29, 2010 - Use the promo code LAGCPEARL to receive an additional 10% discount! Over 300 of the most influential decision-makers in the games industry gather for the LA Games Conference to network, do deals, and share ideas about the future of console, PC, online and mobile games. LA Games Conference – now in its 4th year – features a lively and fun debate on timely cutting-edge business topics, demos as well unrivaled access to some of the most progressive companies in Hollywood, Silicon Valley and beyond. We invite you to join us at the event and take part in the discussion with executives, creators, investors, analysts, press and gamers who will be instrumental in shaping the future of this booming business.

Please visit http://www.lagamesconference.com/ to register and view a complete schedule. Use the promo code LAGCPEARL to receive an additional 10% discount!

 

Pearl Research Exclusive Studies

Please contact us for an excerpt of these reports.

i. Games Market in China, Korea, India and Vietnam

These comprehensive studies examines the emerging games market in China, Vietnam and India. The reports include an executive summary, key metrics, forecasts, deep marketplace analysis, profiles and conclusions.


Screenshot of India study

 

ii. Phoenix Generation - Online Games Tournaments, Success of Casual Game Audition, Virtual Currency Update

Pearl Research's "Phoenix Generation" study tracks the latest trends among Chinese youth. These primary research studies are based on interviews and surveys with first- and second-tier youth across the country. This update analyzes the growth of online game tournaments, the success of games such as Audition and the latest laws regarding virtual currencies.

iii. How the World's Biggest Social Networking Sites Monetizes

This study analyzes the monetization of social networking sites such as Qzone (with 200+ million members), Kaixin, and Renren, along with survey results for Facebook and Myspace. The study also provides key insights based on the growth of these sites. Please contact us to view a complimentary excerpt.

 

   
         

Pearl Research |Products | Join our mailing list
Email: research (at) pearlresearch.com
Phone: (+1) 415-738-7660

Pearl Research is a San Francisco- and China-based consulting and market research firm that focuses on the Internet, games and technology markets. We send out a newsletter 10 to 12 times a year. Please contact us for more info about our services or for any questions. To unsubscribe, please click the link below.