from the revenues dept.
Brian Deagon over at Investors.com wrote up an interesting article regarding the state of the games industry in China, and the strengths of the free-to-play model in that market. This model has been proven by companies like Netease, a BigWorld licensee. BigWorld was one of the earliest companies to enter China in the 90’s, and has since established itself strongly as a widely-adopted platform solution for Chinese developers. Netease, who holds the World of Warcraft license in China, and has built games like Tian Xia II on BigWorld tech, is currently number two in gaming revenues drawn last year, reports Deagon. Netease and Sohu have been particularly popular amongst investors recently. All of this marks a stronger shift than ever away from the box retail model, and more into free-to-play and social/casual games.
Name of the game: Games companies need to be lean, mean, flexible and creative to maneuver through a changing landscape that is disrupting older business models.
Full article here.
We reported a few days back regarding Netease’s Q1 financial report, which will should be an interesting read for anyone interested in seeing how this Chinese gaming giant is approaching its market.
Keep an eye out, as well, for a related article we’re writing for a major game magazine. You’ll know it when you see it