The dog days of summer may be descending on Shanghai, but one place that won’t be too steamy this year is the city’s annual game fest, formally known as ChinaJoy, that takes place in July. The organizer of the country’s biggest gaming trade show has thrown cold water on people who attended in the past to ogle scantily clad models, saying it will enforce a strict dress code at this year’s edition.
This particular move follows a similar ground-breaking prohibition on excessive skin at the Shanghai auto show last year, a move that was greeted with cheers from true car enthusiasts but boos from some who said it dampened the show’s festive atmosphere. I tend to side with the former group, and applaud this broader movement that’s trying to clean up our business culture here in Shanghai and make it more professional and globally respectable. Read Full Post…
Bottom line: China’s gaming market remains stubbornly fragmented and unprofitable despite its huge potential, with no clear signs of much-needed consolidation coming anytime soon.
Gamers continue to struggle
As much of China bakes under a summer heatwave, a major trade show this week in Shanghai is casting a different spotlight on the overheated state of the nation’s gaming industry. One report is saying that only 2 percent of companies in the emerging mobile gaming space can generate big profits, and the situation may not improve anytime soon due to a stubborn state of fragmentation.
The problem has led many of China’s US-listed gaming companies to launch privatization drives over the last 2 years, including Giant Interactive, a large but decidedly second-tier player that de-listed a year ago. Giant’s talkative chief Shi Yuzhu is blaming US investors for failing to appreciate his company, with the latest reports saying he thinks Chinese stock buyers will value his firm at more than 5 times what it was worth when it de-listed from New York. Read Full Post…
Top executives from software security maker Qihoo 360 (NYSE: QIHU) and struggling game operator The9 (Nasdaq: NCTY) were getting chummy in the blogosphere last week, filling the airwaves with chatter as they prepared to announce a new alliance at the country’s top gaming trade show in Shanghai. Meantime, executives from PC giant Lenovo (HKEx: 992) took time out from their usual tech and marketing chatter to make some low-key criticism against the government, including a microblog post in defense of the beleaguered McDonald’s (NYSE: MCD) as it grapples with one of its worst-ever food safety scandals in China. Read Full Post…
