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Xbox One, PlayStation 4 will be showstoppers

2014-07-28 10:57 Shanghai Daily Web Editor: Qin Dexing
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Mobile games and game consoles are expected to generate the big buzz when the annual ChinaJoy exhibition opens on July 31 in Shanghai — offering game lovers a treasure trove the size of 14 football fields.

China's largest game expo will showcase trends that are shaping the development of the mobile game and consoles industry in China.

Mobile games are all the rage in China, abetted by the popularity of smartphones and tablet PCs and by faster Internet speeds. Equally exciting are the pending debuts of Microsoft's Xbox One and Sony's PlayStation 4, after the Chinese government lifted a 13-year ban and allowed foreign companies based in Shanghai's new Free Trade Zone to produce and sell game consoles.

"It's hard to say which one will be more popular with Chinese game players," said Zhu Junbo, deputy director in charge of games at the Shanghai Press and Publication Administration, a co-organizer of ChinaJoy. "We are looking forward to seeing the response of visitors."

The change of policy on foreign consoles was part of the pledge to use the Shanghai Free Trade Zone as a test site for deregulation.

Takehito Soeda, Sony China vice president, praised the move and said it puts the mainland on a more equal footing with the global home entertainment market.

Yusuf Mehdi, Microsoft vice president, said in Shanghai in May that the launch of Xbox One in China will be a milestone for Microsoft and the whole game industry.

Under the deregulation, Microsoft and Sony are required to have domestic partners for console sales. Sony linked up with the Shanghai Oriental Pearl Group, and Microsoft set up a joint venture with BesTV New Media in the Free Trade Zone. Both companies are expected to begin sales of their consoles in September.

  Shopping spree

Some local gamers told Shanghai Daily that they plan to try out both game consoles at ChinaJoy before deciding which to buy.

"I've been dreaming about it for such a long time, and I am anxious to try them out with my own hands," said Zhang Mingqi, a 25-year-old game aficionado.

Analysts predict the debuts of the Xbox One and PlayStation 4 might spur a shopping spree in September as pent-up demand is unleashed.

Mobile games will be generating their own enthusiasm at ChinaJoy. The expo has set up a special pavilion where nearly 1,000 mobile game products will be unveiled by the likes of Amazon, Google, 360, Baidu, Tencent and Alibaba.

Online gaming operator NetEase will introduce new mobile games, including The World, a 3D action adventure mobile game, and S-Game, an action game featuring Chinese painting styles.

It's big business. In 2013, revenue from mobile online games run or developed by Shanghai companies totaled 2.2 billion yuan (US$351 million), almost three times more than the year before, according to a local government report. The number of players on those games rose to 18.7 million from 15.4 million.

ChinaJoy will leave no doubt that China's game industry is dynamic and rapidly changing.

  Huge potential

The open door policy on foreign game consoles creates new opportunities for the game-related software industry in China, according to Howell International Trade Fair Ltd, an organizer of ChinaJoy.

According to a Newzoo's global report, game consoles accounted for about 43 percent of the game market last year, generating income of US$30 billion. Although the proportion dropped 1 percentage point from 2012, game consoles still proved more profitable than PC games, mobile games and other social games.

"The opening of the Free Trade Zone will draw more overseas game companies to Shanghai and shake up the Chinese game market," said Han Zhihai, general manager of Howell.

The four-day ChinaJoy expo, spread across 100,000 square meters in the Shanghai New International Expo Center, will display 1,000 products from more than 450 domestic and international companies. The exhibition is expected to attract 250,000 visitors.

Running concurrently with ChinaJoy will be the two-day World Mobile Game Conference to be held at the Kerry Hotel in Pudong.

The event will bring together senior executives of game companies for discussions about the direction of the industry and the formation of new partnerships.

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