The future of the Chinese mobile games industry

[Music] hello everyone my name is Jessica Linscott and interesting so what we'll talk about the future I think so first is currently entire existing rock there are 600 million users in China that's 45 percent of the national college as you can see the penetration in brainy that the growth of Chinese user in the past couple years have a significant of the cruise plug

distinguished markets in your address and like the last person teaches that there's a long China so I think in the next couple years in fact in the previous all six of 70 presentation the conference in China I've been doing per certificate 120 years already and it's very interesting because the governor to see that when I started my personal run ten years ago I'll be asking the audience if I ask this question today I'll be reversed so definitely China right now health gaming is that embeddedness lifestyle for a lot of times population so the more the definition of gamers in China have really evolved from someone that

can games for themself gamers who some of that cost exact gamers as more hardcore gaming audience so here is that is somewhat the focus as one of the disc punctures with China that fathers are supposed to protect away Garden State escape well we can see in this part that you can see then there's red the red point so the red part of parts that you don't want to touch here in the audience do not touch these darlin trying to get into trance market these are the dollars that you have absolutely almost zero competitive edge against a Chinese dollars like I mean like I have another life couple years ago game overall approach to me and say hey you know do you not publish the whole entire life you know times theta SF jeans your sog a 25 generation betrayals which is true so

if you look at current in essence market in the West long time actually dominate the patterns times publishers choice owners well but the other sectors like sandbox submission games sports games survival teams these are games that try absolutely the easiest way to look at it is if your game is written by everything matrix in that case these are games that if your game is about experience is about telling story is about official times that so if you have a game like that and would I believe a lot of you have you have a chance to time so these are the trends that I see in 2018 - these are some of the latest days training in fact this presentation I'm not using it for Westerners I'm using it

for Tigers audience so this religious information so as I just explained in China right now this almost 600 games they're one of the biggest complaint by the company of the gamers in China star the core the nerves the garage they stay at home and they never come over that the room which is to play Anita the house with the friends who warriors to attacks and this attack was changing in 2008 - in China right now there is a whole ecosystem of offline gaming activities where there is not a PC game room where you see gaming habits that we play now for 16 hours these are very social environments were game and we thought they played working together five versus five it had triggered a whole industry just now in water last

week there's a seminar where the government estimated 120 billion remain teeth of a market value of offline game so there's a huge market a lot of we have eSports Club somewhere it's like a shop where people goes there to meet up with this was a player and it gets to play hockey with some KOAT losers there's an Impala new industry of a hiring eSports coach were in these shops you play your favorite party game or a lot they will be my ranking do you want to hire me as a code or like twenty

bucks an hour or 20 bucks game will help you to earn your score rank up the letter I'll teach you some tricks on how to play your favorite characters so it's really becoming offline and we believe that offline offline gaming even on a mobile device or on a PC is going to be a very big trend and they're a big driver going forward so you can see these are some of the first element so recently we just did the party Asia reputation in a cow on my viewership for that right now I think we haven't do a final count yes we're setting it over 30 million just Chinese live streaming on the side here you can see this is kind of what I'm talking about this guess bar people go there to clean a eSports game to play against

friends or to meet with other players that at least is the game that we played in a weekend in transforming to a new sports bar where it broadcast like the hockey tournament or their house or any kinds of eSports one and what control to join up and dreams and talk about games the done offline environment is becoming very very vibrant in major cities in China and these active in hubs are normally not just gaming they do include other than 10 mobile games and PC games they also have been basically not except children were young couples you know because Chinese get very crowded nothing space is getting crowded in their back or their coach sharing the apartment with their friends you know they don't have places to rehab datings

a situation that kids today they don't want to go to cinema because you know they look at the cinema we are scheduling saying I don't want to I don't want to watch this movie I don't want to watch it at this time of timing I don't want to what the people that I don't know they're so slow right and there's a long places that also be covered your guys incorporate instagramers were painting a picture now the topic that I think no speaker want to touch the crisis stop until late today yes um so being reassuring China we can still keep the ice cream crisis I think as you all know already and I was actually doing

in conference where government officials start talking about the open audacity a crisis the situation is now soft so they are giving out new licenses now of course it is do a lot of rumor going around so a few things that I can give on the factories is first they are not accepting any new application at this moment all right they are actually just clearing the backlog that is created so all the games that is getting approved right now both of them are games that have already pitted the process and stuck or the whole 2018 the second is the rule is that inspector both for Chinese developer also I think it will be very cruel show going forward or customized with that they offer have to find publishers in China even if you look at

your space even if you're looking at a live space is probably a much better choice to go with a publisher than without a publisher because you know the rules is going to get over time that's what I think however I think with with with this change in the market we're going to see more and more equality coming out from the funnel where there is two groups that is actually doing the proving one group is the ethical board and the other group is actually the government not the government department the ethical board is looking for a quality standard for cultural center standard which they're not absolutely unknown but they have subservient influence not towards our last Google and having a publisher to work and in the extreme conclusion so I

was there but this guy deliver the Christmas present always lawful for the whole gaming community because this is like so they I think right now there's a third batch a lot of people have been asking this like it seems like mousing on a monthly basis yes they are now save on a monthly basis but companies are getting here to buy as soon as they approve the game it's just that every Monday we release officially but if you let's say they release the report on the 13 everyone actually you people have Google on the first and second or third they have already made it very clear they will be unlimited but they happen specify how many days per month per year so we are I'm sure about it there is certain guidelines already

that is been in place but that law so I would say the best way to get information the other trend that we're seeing in 2018 is because of the ice being crisis we can see a lot more Chinese developer going out of China this is the first time in China that I see developers where I approach them give me the same answer which is well I can just focus in the Chinese market expecting off I only do global market if you if you look at the pack 90 report you can see a ball of Chinese in talking about Japan popping up in Korea popping up in the US or various chart and I believe it's a continuing trend and one

of the key I was saying was that he had been caged that the Chinese don't understand is how to do in a highly more monetizable and hiding are all activity so again you're working on things like that be wearing off the Tigers course time so these are some of the guidelines that the Chinese government is also giving to the Chinese market is they want to see more higher core committers which is not just written by matrix or Germany by our lives so I think this is where international developer have lost opportunities in china because chinese developer actually do not understand how acoustics in the past 20 years yeah started work 2002 you can see that

Chinese industry have just been going through different energies and pieces in web browser days always so actually modeling tank I've actually right now jaian I can say on that news is trying to figure how to make games as about experience and this comes down to create a visa in the Beijing Chinese could not catch up just by capital towards that happen so I think there is a lot of opportunity for international developer to work with Chinese developer or bringing them English from the West through the use if your game really shines on experience the other thing that are the Chinese stuff is also doing right now general that industry is doing is doing these protection in their games so if you're partial games in China or do not know her publisher do not

function that have understanding how to do protection it's done must right now the dominant haven't say that we have to continually but it's definitely going to be in a separate group who are going to be a little bit easier Tenzin is doing in a group style together with subdue police departments per se scheana's doing a lot of manufacturers history email so make sure that you watch in China the eSports industry is also blooming quite well right now and 2018 Jason the first time ever the eSports to actually generate a profit just from a source so we think that the change of Legends recently instead of premium attacking include

into a more NBA style which is a fixed 1618 style assault accruing a new triangle in the sports industry and if you can have this person tricked and that many days and I think though if you didn't have that competitive nature highballing of the high volume of traffic - how do you open it with me that's it so to any thank you very much thank you hi so taking into consideration the - began problems what do you think it creates in terms of Asian publishers

and European developers didn't put a soul on the contracts and new collaborations being made or your continuing business as usual knowing that one voice it might be useless so so it varies for publishers publishers so speaking as a partner I just thought we have two assignment me to 2018 right but certain publisher which are smaller stable they have seized for their partial plan some publisher wasn't continued to sign news but they only paid they have a strategy or the license fee when they get asked yet some publisher like I who's died we have to take both weapon our contracts ended up with the pain on a licensee of new bearings in the design game I'm paying according to the king statue with all considered I see an issue I think in 2019 at they will still

be a stall better than two thousand eighty thousand dollars everyone I talk to they're like I don't know why right mom but in 2019 I think that usually East but because the law publishers still have backups right so they won't be as aggressive as they were 17 or 16 I think it would normalize the 2020 where you see more publishable willing to sign me thank you okay boys my question is there's no James deputies asked for a secret do you think there's a reason that's going on there with the government and

those two major you guys ah the official story is the government is working in order of the game being submitted all right so I think but I think that these and $0.10 games there are games that is from ten-second at least I think on the third batch that was just recently reduced this month and that's that's official story right now the government is not paying more attention to that these or can say this is the central government that is working right now so no publisher in the market do you have any sway over eccentric up this is the government this is the department that had the movie history so to a lot even converter is this is a new department that they have never lobby with them never had any connection with so it's going to take

time for posture to repair the relationship and connection problem that's why I said you know probably 2023 publisher with that before that I think everyone is on the same side a moment yeah Walter J this gentleman Oh Miranda so alright thank you very much I think this that perfect absolutely can [Applause] [Music]