Game outsourcing will exceed 0.5 billion Yuan by next year in Shanghai

Under the fast development of global informationization, digital media industry centering in game, animation and postproduction of film and video is presenting high developing speed in recent years. Yesterday journalists got the information from Shanghai Multimedia Industry Association that they would promote the game industry to pull the development of digital media. 2007 China's New Generation of Games Trade and Investment Fair hosted by industry association will be held in Shanghai Multimedia Park at the end of this month.

"Mute Revolution" in Game Industry

On 9th, March of this year, Screen Digest, an English New Media Consulting Company issued a market research essay named outsourcing in the development of game-hosting computer of the next generation, which anticipated a big increase in the game outsourcing market. Starting from the small amount of outsourcing five years ago to 1.1 billion dollars for outsourcing in 2006, 40% of the cost in the game industry --- 2.5 billion dollars will be invested in outsourcing in 2010. The report called this trend as a "mute revolution" in game industry. Last year, another consulting company Amritt Venturein India also released a report about this trend. Among the 259 interviewees within the industry, 78% of them were willing to add outsourcing business in the next year, and 42% of those people would like to outsource to China while 38% of those people choosing India. So the domestic game outsourcing companies are facing an international market worthing tens of billions dollars as well as a good opportunity to improve their development level.

Shanghai is currently the area for game outsourcing with the longest history and highest level throughout the country. A large number of famous domestic and foreign game producing or outsourcing enterprises such as Ubisoft from France, Epic from the US, Neusoft from Japan and etc open branches in Shanghai. By 2006, there had been hundreds of game producing enterprises in Shanghai, producing nearly 200 million Yuan. According to the special investigation about outsourcing carried out by Shanghai Multimedia Industry Association in 2007 global game Developers Conference (GDC), more than 90 percent of foreign enterprises are willing to cooperate with the Chinese game outsourcing enterprises. It is estimated that the output value of Shanghai games outsourcing will exceed 5 billion Yuan by 2008.

The new generations of game expect the attention of VC

The prosperous game industry of our country, especially the original national online games, is increasingly becoming the new hot spot for investing for its unique features such as originality, innovation, product proprietary and so on. In 2006, our online game industry developed rapidly with an increase of 73.5% in the output value, in which original national online game took up 64.8% of the market share. This fast development of game industry makes those local development and outsourcing enterprises in investors for their matured products, developing team and operating mode get more attentions and favors from investors. The biggest bottleneck for the development of the original enterprises is that they lack of capital and business opportunities. Powerful online game operators are seeking new projects while investors focusing on game industry are seeking new targets to invest. Therefore, the major lack between China's new generations of original game producer and well-financed operators, investors is the channel to fully communicate and exchange ideas.

Ming Haoxia, General Secretary of Shanghai Multimedia Industry Association pointed out that the whole industrial chain including operation, development and periphery services maintained a good momentum of growth, but challenges and opportunities coexisted. The leading enterprises in the industry will develop stably for their matured operating mode and business channel. When these enterprises will develop to be even stronger and become the main force in the game industry, the development of small and medium enterprises will be relatively difficult to gain. Among these SMEs, there are skilled and potential game enterprises of new generation. Based on this fact, in order to support China’s game enterprises of new generation and empower the strength of game originality, Shanghai Multimedia Industry Association organizes this business exchange and investment fair for game industry as a platform to seek for investment and outsourcing communication. The event will invite many comprehensive businesses, investment organizations and representatives from game developing enterprises and related fields to discuss and exchange ideas about game development, operation, investment and finance, outsourcing and other issues.

In addition, in order to create more chances for the development of original game developer, all the relative people engaging in, concerning about and supporting the original career of game can sign up for this event before 20th, November.