2011 Korea White Paper Report

The Korea Communications Commission has released its 2011 Korea Internet White Paper report.  The report details, among other things, the developing Internet infrastructure in South Korea, the increasing number of broadband Internet subscribers, and the growth of the mobile platform in the nation.

On page 58, the report makes an interesting claim that in 2009 online game sales encompassed about 56.4% of total gaming sales with sales figures reaching 37,087 units (1 unit = 100 million won) (1 won = 0.0009 US dollar).  The report also claims that in 2007 online games sales reached 22,403 units and that in 2008 online games sales amounted to 26,922 units. 

White Paper

Asian Game Publishers Mull Potential Valve Purchase

Asian online gaming giants Nexon and NCsoft are rumored to be in talks with Valve, makers of the successful games "Half-Life" and "Portal", to purchase the company for around US $893 million. 

Valve was started by Microsoft veterans Gabe Newell and Mike Harrington.  The company rejects a traditional management structure and allows its employees creative freedom by allowing them to choose what to work on.  The company's unique management style has led it to become one of the most successful and innovative U.S. based game developers.  Additionally, Valve commands a lions share of the on demand market for PCs through its online game distribution service, "Steam."

Given the founders' penchant for not selling out it is unlikely that this purchase will go forward.  Also, a purchase price of $893 million for a gaming juggernaut like Valve seems very low.  However, in the off chance that a deal is hammered out, Nexon and NCsoft's ownership would continue the trend of Asian publishers establishing large footholds in the U.S. gaming market.

Games Beat

SmileGate in Business with Tencent re "Crossfire"

South Korean online game developer SmileGate, the developer of the hit FPS Crossfire, is partnering with Chinese internet giant Tencent.  SmileGate will not be renewing its contract with Neowiz Games, which will expire in July of 2013.

A lawsuit is currently pending in the South Korean courts regarding the ownership of the "Crossfire" trademark between SmileGate and Neowiz Games.

Western Developers Working with Local Partners in China

You've just put the finishing touches on a mobile game you and a couple of friends have been developing for the past year.  You're excited to launch and market the app and bring in some much needed funds.  Before you jump the gun consider the impact your game can make in China.  China currently leads the world in iOS/Android phone activations and is on track to have over 200 million smartphone owners by the end of this year.

However, the Chinese mobile game market has its own quirks and issues.  Chinese gamers have a tendency to avoid purchasing apps but make plenty of in-game purchases.  In addition, China is a hotbed of rampant, unchecked piracy.  How can one seize this market?

Lately, many Western developers have taken to working with local partners like Yodo1 and The9.  Local partners can help adapt your IP to suit Chinese gamer's tastes, translate the game, optimize monetization of in-game purchases (if you haven't already), and police your IP.  Many of these local partners have also successfully built buzz for upcoming mobile games by integrating with Chinese ad networks and promoting them across other apps.