In the context of the overall warming of the market, on March 17, a rumor that the game version number may be open made the A-share game sector usher in the long lost trading tide. Some market participants said bluntly: “it’s time to let the game sector lying at the bottom of the valley return blood.”
Since the suspension of game titles last year, China’s major game companies have encountered a sudden cold wave. For a time, game companies with no choice set foot on the road of “going to sea”.
now, with the remarkable achievements of games going to sea and the strong expectation of the opening of edition numbers, China’s game industry may usher in a trend reversal
version number rumor again
In the morning of March 17, with the warmth of the market, the game sector was “like a spring breeze”.
Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) and other stocks rose one after another. According to choice data, 30 of the 31 companies in the game sector rose, and the game sector index rose by 2% to 892415 points
On the news side, a rumor about the version number may be the origin of this “spring breeze”.
some media reported that the game version number may be released from the end of March to the beginning of April this year. The reporter noted that not long ago, there was a news that the version number might be opened in April on social media, but the game working committee denied it at that time
Now, the resurgence of the wind also makes many market people think that the rumors may not be groundless. “At present, the whole game sector is at the bottom of valuation.” A brokerage analyst said that combined with the current market situation, this news has a certain credibility. In addition, a number of market participants told reporters that they had learned relevant news from different channels.
The past year has been really tough for the game industry.
After checking the data of 10000 game companies in August last year. In 2020, the number is only 18000.
now the rumor that the version number may be reopened gives the industry some hope. “This means that the industry may usher in a restart.” A person in charge of a game start-up company told reporters that now, when to issue the version number has become a landmark event
“In fact, many investment institutions are willing to invest in us, but now the version number has not come down, we dare not enter the market.” The aforementioned person in charge said that in the past half a year, the company can only rely on its own funds. Once the version number is opened, the investment institution will be in place and the company can tide over the difficulties.
outstanding achievements in going to sea
The edition number stops and the game goes to sea.
in the past six months, making products go to overseas markets has become one of the few choices for many game companies. Previously, a relevant person in charge of Lilith told reporters that this year the company will focus on the field of overseas games
A-share game leader G-Bits Network Technology(Xiamen)Co.Ltd(603444) executives also said bluntly, “before, the company had a certain accumulation in the Chinese market, and producers would prefer to choose the familiar Chinese market. Therefore, at present, the company takes coercive measures to force everyone to adjust the direction.”
In fact, the domestic game industry has developed rapidly in recent years, which makes Chinese Games highly competitive in overseas markets.
According to the data, in 2021, China’s overseas revenue of self-developed mobile games was 103.8 billion yuan, a year-on-year increase of 16.59%, and its share in the overseas mobile game market was 28.87%. According to the calculation of Sealand Securities Co.Ltd(000750) relevant research report, in an optimistic situation, calculated by 45% of the market share, by 2024, the sea revenue of China’s self-developed mobile tourism may be close to 248.04 billion yuan.
According to the revenue ranking of Chinese mobile game publishers in global mobile app stores released by the third-party organization sensor tower, Tencent games, Netease games and MIHA games continued to occupy the top three of the list in February this year. In addition, in February this year, 36 Chinese manufacturers were shortlisted in the list of “top 100 mobile game publishers in the world”, with a total revenue of nearly $2 billion, accounting for nearly 40% of the total revenue of the top 100 mobile game publishers in the world.
overseas worries still exist
Compared with the Chinese market competition with “Purgatory level” difficulty, the advantages of overseas game market are obvious. The international mobile game market is in the ascendant, especially in many underdeveloped areas, the popularity of mobile games is very low. For China’s experienced game enterprises, it is a good choice to “open up territory”.
While Chinese game manufacturers go to sea on a large scale, they also make “cultural going to sea” a key word in the past two years. Whether it is Netease Tencent or the rising star MIHA tour, there is no lack of Chinese elements that attract people’s attention in related products in recent years. With the increasing proportion of Chinese Games in overseas markets, many people in the industry have made a horizontal comparison with Hollywood in the United States.
“As the ninth art, game itself has the same cultural attribute as film. At present, American Hollywood films account for more than 50% of the global overseas market. In the future, China’s game industry should also develop towards this goal.” A brokerage analyst said.
However, for the majority of small and medium-sized game enterprises, it is not as simple as the outside world to fight in the overseas market.
According to the data, from 2019 to 2021, the proportion of China’s self-developed mobile tourism revenue from the United States, Japan and South Korea was 67.60%, 60.27% and 58.31% respectively, which is a well deserved main revenue.
“The overseas market is mainly divided into two parts, one is the high-end market such as the United States, Japan and South Korea, and the other is the market in Southeast Asia and South America.” A person in charge of a game start-up company said, “the market in Southeast Asia is easy to open, but the per capita payment is low and it is difficult to make a profit. Although the US, Japan and South Korea markets are rich, they are a positive confrontation of the world’s top games, which has great competitive pressure on small manufacturers.”
In addition, the uncertainty of overseas policies also puzzles Chinese game companies. “If you are unfamiliar with overseas places, you need to contact local publishers and make comprehensive adjustments to the game.” The aforementioned person in charge told reporters that the overseas cost of a leisure game needs millions. “In addition, there are relevant local regulatory policies. Once there are changes, Chinese game enterprises are still isolated.”
Looking forward to the future, a number of game company leaders said that in the future, with the release of version numbers, the team still hopes to be based in China and compete with overseas top game companies on the basis of deeply cultivating the Chinese market. “To make our base camp stronger and more solid, we will have more confidence to compete in the overseas market.” Said the aforementioned person in charge.
