China’s game firms can seize chances in intl market

By Chris Dalby Source:Global Times Published: 2016-2-13 22:28:01

Illustration: Luo Xuan/GT

The Chinese mobile gaming market has mostly been separate from the rest of the world until now, churning out apps that are designed for Chinese gamers, not the international scene. This is now slowly beginning to change. Companies such as Gamebau in Shanghai have released games that are intended from the start for markets such as Latin America, with the gaming habits and preferences of that region in mind.

Is this a sign of maturity in the Chinese market? How easy will it be for Chinese-made games to tap into markets still dominated by the US or European-made mass market appeal of Candy Crush and Clash of Clans?

While the Chinese market is appealing to many, it can be a tough nut to crack. First of all, the traditional Apple Store or Google Play platforms, in which competition is rife around the world, face increased shade from the likes of the Baidu App Store or the Tencent App Gem. In comparison, Latin America or Africa, while exhibiting large gaming potential, get little love. Many games are simply translated into French, Spanish or Portuguese and released, with no thought about what makes these markets stand out.

For example, while China benefits from numerous payment platforms such as Alipay, Brazilians need international credit cards to buy games or make in-app purchases. The limited penetration of international credit cards in this market has posed a problem for numerous foreign companies, including China's Xiaomi. During its famed flash sales in Brazil, Xiaomi allowed the option of customers buying a phone online but paying through boleto bancario, a pre-completed invoice that can be paid for offline at any bank, ATM or supermarket.

It may be that the low penetration or complex online payment options have put some gaming companies off fully investing in these markets. However, Gamebau, a Shanghai-based mobile gaming company, has chosen to release its games in countries like Mexico and Brazil, without doing so in China for the moment.

Gamebau is trying to overcome the problem with the launch of a new payment platform, which would allow customers to pay with credit and debit cards, Paypal and other local payment methods.

Pedro D'Aguiar, COO of Gamebau, acknowledged that it is not easy for a Chinese company to crack Brazil or Mexico alone without local help.

So far, Chinese investment in foreign countries has been dominated by flagship infrastructure projects. No doubt local populations appreciate a bridge or a light rail more than yet another Candy Crush clone.

But Brazil in particular is craving new mobile gaming experiences. While it is only the 11th biggest spender on mobile gaming, over 60 percent of its 50 million gamers are spending.

It would be wise for other Chinese gaming companies, besides Gamebau, to cash in on this. Doing this in 2016 might seem difficult at first glance. Brazil's currency, the real, is dropping against the yuan and the US dollar and the country is mired in a deep recession. However, Brazilian gamers have shown their resilience as they continue to invest in gaming. Perhaps Chinese mobile gaming companies, by adapting their product to this market, can steal a march on Western giants.

The author is a Mexico-based analyst of Chinese politics and economics. bizopinion@globaltimes.com.cn

Posted in: Columnists

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