According to Enfodesk, provided by Analysys International, the transaction value of China online game was 8.5 billion Yuan in Q1, 2011, with a sequential growth rate being 6.1%. Following one-year recovery, online game market found three aspects to promote its growth, namely game innovation, model innovation, in-depth market development and market segmentation. With favorable factors in Q1, the whole market achieved a substantial growth.The growth in Q1, 2011 is attributed to 1st-tier manufacturers' promotion during the Spring Festival. Prior to or after the Spring Festival, the number of online RPG players showed a marked fluctuation. It reached to the summit after the Spring Festival and average online period was increased considerably. Also, point card and 3rd Party transactions experienced a growth with the promotion of games.
Analysys International believes that China online game market is injecting new blood and predicts that China customer online game market will maintain a steady growth. The new games in Q2 will encourage the growth or discourage the growth owning to diluted APRU. Factors to accelerate the whole year growth include:
According to Enfodesk provided by Analysys International, SNDA's Dragon Valley enjoyed a marked growth in the number of time card and 3rd party transaction in Q1. Player of 3D action games formed a habit of payment gradually. One predicts that Mabinogi Heroes, C9, TEAR and Blade&Soul and other action games will be launched in the market by Q3. And other PRG gmaes featuring action factors like SwordsMan, Gongfu Hero will go on the market and finally activate China online game market.
Shooting online game market is recovering. SNDA, Kingsoft and GY will enter into FPS market. TPS includes Tank World and Bubble Fighter. TBS PRG 3D Genesis like Journey to West and Menghuan Liaozhai will enter the market. The enriched games will continue to make contribution to the growth of new players.
Exploration of business model
Giant and Tencent are making exploration of virtual product C2C market. Giant's Journey 2 has already made its contribution to its revenue in Q1 and is expected to make a long and steady contribution.
Netease StarCraft 2 has already adopted RTS online business model. There is no sign of a boom in H1. The opening of battlenet signifies that good practice of global games in the Chinese market. Much improved and enriched business models will meet customers with different payment habit and provide a path for overseas game developers. This corresponds to Analysys International's previous prediction.
In-depth market development and market segmentation
According to EnfoDesk, Netease, GYHuaxia and other manufacturers has promoted their business by in-depth market development and market segmentation in Shaan'Xi, Shan Xi, and Henan by the end of 2010. Those achievements have shown that there is a huge room for development in 2nd and 3rd tier online game market.
70xy and Netease launched online games with content of Chinese Ghost and Love Stories in Q1, 2011. Besides, online games adapted form online literature will enter into the market. SNDA launched the testing of All Star, ChangYou has purchased Dou Po Cang Qiong. Baiyou's The Everlasting Legend of An Ordinary's Pursuit to Immortal has shown a nice performance. The above facts indicate the expansible game content.
Definitions in this Research:
Online Game is an electronic game, based on network and involved multi-player. Through players' interaction and fighting, it satisfies the needs of communication and entertainment. The online game in this report refers to the game of this kind, with the internet serving as its playing platform and PC as its device.
Revenue refers to how much game operators gained from online games a season.