Japan marvels at Chinese game makers: Our 2 years of work Chinese done in six months

China Mobile game manufacturers out to sea combat power, is no longer news. In particular, geographical location, cultural customs close to Japan and South Korea, the most can feel the impact of Chinese culture, including Japanese and Korean media have been repeatedly reported. But the impact on the local market, unexpectedly few people delved into, in a recent Wall Street Journal report, many Japanese interviewed, the Chinese game “crossing” Japan specific reasons.

For example, as shiro Yamashiro Yamashiro, finance director of a Tokyo company, says, “Chinese game quality, character and play are as good as the best corporate products in Japan”. Not only the superior quality, the advantages of Chinese game manufacturers also lies in the high efficiency, former Famitong editor-in-chief, Kagawa Group director Hiroshi Umura said, “Chinese game manufacturers can complete the Japanese game manufacturers in six months to complete the work that needs 2 years to complete.”

The efficiency is four times that of local developers, and it is also possible to guarantee the quantity, so that Chinese games are not popular overseas, but will be news.

Market development and policy guidance, domestic Mobile game ushered in a rapid boutique

The third quarter of 2019 report released by the Games Industry Commission showed that China’s real sales revenue from overseas markets for independent research and development games reached US$3.14 billion, up 9.2% YoY and 29.3% YoY, 10 percentage points higher than the growth rate of the domestic market.

Japan marvels at Chinese game makers: Our 2 years of work Chinese done in six months

According to the “China Mobile Game Depth Insight Report” released by App Annie in August, 13 Chinese Mobile games entered the local App Store bestseller top-selling list TOP20 and 45 of the free top20 in the first half of 2019. Sensor Tower data points out that China Mobile Game contributed $160 million, or 17.73 percent, to $902 million in total revenue from Q2 Korean Game App Store and Google Play TOP 100 products this year.

Japan marvels at Chinese game makers: Our 2 years of work Chinese done in six months

Thus, not only Japan and South Korea local players, developers and media subjective feelings, objective data, China Mobile game manufacturers out to sea is also very strong, but why strong? There are still some historical reasons.

Until 2016, going to sea was only an option rather than a necessity, and the main brushing occasions were sporadically mentioned in various sharing, with few manufacturers viewing it as a strategic level, with the exception of a few companies focused on international markets. Therefore, at that time the domestic line-up to small and medium-sized manufacturers mainly, even until 2019, the industry magnesium lights are gathered around the big factory, many excellent out-of-sea manufacturers, in the mainstream of the domestic game market, are invisible.

For example, in May this year GameLook on sensor Tower issued a domestic Mobile game out-of-sea income list, statistics of the head of domestic out-of-sea manufacturers in the city distribution, there is an unexpected situation in Beijing, because a large number of previously not familiar with the industry’s excellent enterprises, gathered in Beijing.

And with the appearance of the version number, things began to change further. On the one hand, the market mature background of the user for the quality requirements of a sharp rise, skin homogenization play was swept into history; Both are equivalent to the domestic Mobile game quality upgrade to a “nitrogen acceleration.”

Strategic vision and All in attitude, do the burst of Chinese manufacturers are better at

One of the great changes brought to the industry by going to sea has the rise of emerging manufacturers, including the Youta network and the Haibei network, which has affected more developers to join the overseas market and formed a spectacular situation of the whole people going out to sea.

In this process, the attitude of the big factory has also slowly changed. In Tencent’s case, PUBG Mobile has become the benchmark for domestic Mobile game, with almost no suspense continuing to dominate the domestic Mobile game revenue list released by Sensor Tower.

Japan marvels at Chinese game makers: Our 2 years of work Chinese done in six months

Not long ago Tencent game brand new, senior vice president Ma Xiaoxuan interview, also told GameLook Tencent internal “more radical proposal, hope that the future from the user latitude we in China and overseas is half, the future Of China and the world are the same strong, hope to go to the global market with greater efforts.”

Of course, when it comes to the Japanese market, it is inevitable to mention that Japan has been used as the second main battleground. At the end of 2017, Operation Wilderness and The End of The Battlefield were established in Japan and Southeast Asia, respectively, and it was also the year that NetEase CEO Ding Lei began to compare the boutique game to a vision.

Japan marvels at Chinese game makers: Our 2 years of work Chinese done in six months

In the third quarter of 2018, NetEase reported that for the first time, its overseas revenue contribution exceeded 10% of net gaming revenue. In a GameLook may poll, Japan’s App Store bestseller TOP100, NetEase products accounted for 5, more than many Japanese domestic companies, is the third largest number of manufacturers on the list.

Until this year, Wilderness Action remained a regular at the top of the App Store’s best-selling list in Japan. According to Gzbrain, the parent company of Famitong, Wilderness Action earned 40.4 billion yen in Japan in 2018, making it the fourth-highest-grossing Mobile game product in Japan that year.

It was the home-made Mobile game, represented by Wilderness Action, that made Toto Serkan, a Japanese game market researcher, realize that “Chinese manufacturers have far more power to make explosive selling than their Japanese counterparts”.

Large investment and dare to break, strong competition triggers Japanese companies to lay off workers

In addition to quality and efficiency, another great advantage for Chinese manufacturers over local Japanese companies is their understanding and investment in buying. As of September, NetEase was the biggest provider of Mobile game ads in Japan, ahead of local companies, according to Video Research, a research firm.

In the development process, the Japanese game market ahead of China, highly mature and special, representing the population dividend and per capita payment of the world’s first.

Previously, domestic gamers have circulated a “Japan’s game industry status quo” of the micro-blog screenshot, pointing out that there are young players in Japan do not have a PC, mainly play host and Mobile game, broadband is too expensive no WiFi, only the traffic to play Mobile game features. Gzbrain’s data confirms this statement, as early as 2017, Japan’s Mobile game revenue accounted for 70% of the entire gaming industry.

Japan marvels at Chinese game makers: Our 2 years of work Chinese done in six months

According to a joint report by Gamma Data and Newzoo, the mobile game market in Japan is expected to be $11.48 billion in 2019, up 3.8 percent year-on-year. Meanwhile, Japanese Mobile game users pay $171 per person, nearly three times as much as the second U.S. and more than five times as much as China.

Japan marvels at Chinese game makers: Our 2 years of work Chinese done in six months

Despite such excellent conditions, local Japanese manufacturers, already accustomed to high returns because of rising costs, have struggled to adapt to the impact of Chinese manufacturers who dare to do “loss-making” first. Many Japanese manufacturers have become accustomed to continuing to benefit from classic products, lacking the incentive to upgrade quality, such as Head Market’s Monster Marbles and Zhilong Lost City, which have been operating for more than five years. In contrast, the cost of developing a Mobile game in Japan has risen from “hundreds of thousands of dollars to millions of dollars” and developer profitability has begun to decline, according to Nikkei Asia.

Japan marvels at Chinese game makers: Our 2 years of work Chinese done in six months

An official in charge of the game department in Japan said Chinese manufacturers were “more willing to take risks, pay more for more and have more efficient mobility” to win competition than Japanese manufacturers. Also gamma data and Newzoo data, 2019Q1 Japan TOP100 Mobile game foreign products share of water has reached 23.3%, compared with 15.9% in the same period last year and an increase of 7.4 percentage points.

Japan marvels at Chinese game makers: Our 2 years of work Chinese done in six months

The Wall Street Journal notes that many Japanese game makers have begun laying off workers under the influence of China Mobile game. Even days without layoffs, such as Rena, a Tokyo-to-tod gaming company, plunged in half in August.

It seems that, although China Mobile game manufacturers have always believed that the past 2 years of fierce competition, the market is difficult to do very painful, but more painful, may be those facing Chinese manufacturers to raise the quality standards, by the domestic Mobile game with high quality and high-volume investment in three consecutive “down-dimensional strike” of overseas manufacturers.

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