shenzhen

Tencent’s new alternative to PUBG is already topping the revenue chart

Posted by | Asia, Beijing, bluehole, China, communist party, game design, games publisher, Gaming, Government, quora, sensor tower, shenzhen, south korea, Tencent, video gaming | No Comments

In a move clearly driven by economic interests and an urgency to meet stringent regulations, the world’s largest games publisher Tencent pulled its mobile version of PlayerUnknown’s Battlegrounds on Wednesday and launched a new title called Game for Peace (the literal translation of its Chinese name 和平精英 is ‘peace elites’) on the same day.

As of this writing, Game for Peace is the most downloaded free game and top-grossing game in Apple’s China App Store, according to data from Sensor Tower data. That’s early evidence that the new title is on course to stimulate Tencent’s softening gaming revenues following a prolonged licensing freeze in China. Indeed, analysts at China Renaissance estimated that Game for Peace could generate up to $1.48 billion in annual revenue for Tencent.

Tencent licensed PUBG from South Korea’s Krafton, previously known as Bluehole, in 2017 and subsequently released a test version of the game for China’s mobile users.

Game for Peace is available only to users above the age of 16, a decision that came amid society’s growing concerns over video games’ impact on children’s mental and physical health. Tencent has recently pledged to do more ‘good’ with its technology, and the new game release appears to be a practice of that.

Tencent told Reuters the two titles are from “very different genres.” Well, many signs attest to the fact that Game for Peace is intended as a substitute for PUBG Mobile, which never received the green light from Beijing to monetize because it’s deemed too gory. Game for Peace received the license to sell in-game items on April 9.

For one, PUBG users were directed to download Game for Peace in a notice announcing its closure. People’s gaming history and achievement were transferred to the new game, and players and industry analysts have pointed out the striking resemblance between the two.

“It’s basically the same game with some tweaks,” said a Guangzhou-based PUBG player who has been playing the title since its launching, adding that the adjustment to tone down violence “doesn’t really harm the gamer experience.”

“Just ignore those details,” suggested the user.

For instance, characters who are shot don’t bleed in Game for Peace. A muzzle flash replaces gore as bloody scenes no longer pass the muster. And when people are dying, they kneel, surrender their loot box, and wave goodbye. Very civil. Very friendly.

“It’s what we call changing skin [for a game],” a Shenzhen-based mobile game studio founder said to TechCrunch. “The gameplay stays largely intact.”

Other PUBG users are less sanguine about the transition. “I don’t think this is the correct decision from the regulators. Getting oversensitive in the approval process will prevent Chinese games from growing big and strong,” wrote one contributor with more than 135 thousand followers on Zhihu, the Chinese equivalent of Quora.

But such compromise is increasingly inevitable as Chinese authorities reinforce rules around what people can consume online, not just in games but also through news readers, video platforms, and even music streaming services. Content creators must be able to decipher regulators’ directives, some of which are straightforward as “the name of the game should not contain words other than simplified Chinese.” Others requirements are more obscure, like “no violation of core socialist’s values,” a set of 12 moral principles — including prosperity, democracy, civility, and harmony — that are propagated by the Chinese Communist Party in recent years.

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China finally grants a game license to Tencent

Posted by | Asia, Beijing, China, game publisher, Gaming, ma huateng, netease, shenzhen, Software, Tencent, WeChat | No Comments

Tencent has finally come out of a prolonged freeze on game approvals as Beijing granted licenses to two of its mobile games this month.

According to a notice published Thursday by China’s State Administration of Press, Publication, Radio, Film and Television, Tencent is one of nearly 200 games assigned licenses in January.

That’s big news for the Shenzhen-based firm, which has seen its share price plummet in the past months because the licensing halt crippled its ability to generate gaming revenues. Tencent is best known for its immensely popular WeChat messenger, but games contribute a bulk of its earnings.

Both games approved are for educational purposes so are unlikely to generate income at the level of Tencent’s more lucrative role-playing titles, such as Honor of Kings. Tencent has been at the center of government criticisms on games deemed harmful and addictive, and the firm has subsequently introduced so-called “utility games” in 2018 designed to promote traditional Chinese culture, science and technology.

That said, the tech giant could be raking in big bucks from a third-party game that also got approved this week. The title comes from China’s third-largest game publisher, Perfect World, with exclusive publishing rights handled by Tencent.

“The game is the mobile version of the extremely successful massively multiplayer online role-playing game with the same name,” Daniel Ahmad, an analyst at market research firm Niko Partners, suggests to TechCrunch. “We note that Perfect World Mobile is a core game that is set to be a high revenue generating title when it launches.”

China resumed its game approval process in December after a nine-month hiatus during which it worked to reshuffle its main regulating bodies for games. However, it left Tencent, the country’s biggest game publisher, and runner-up NetEase off its first batch of approved titles that month.

NetEase also scored its first post-freeze license in January and had better luck than Tencent, winning a nod for a multiplayer online role-playing game.

Despite the thawing, industry experts warn that approvals will come at a much slower rate than before as Chinese regulators look to more closely monitor game content, putting the burden on developers and publishers to decipher new industry rules.

“The size of the gaming company does not matter. It matters how fast the company can be adapting to the new set of rules and guidelines,” Shenzhen-based game consultant Ilya Gutov told TechCrunch in December.

“As the review and approval process for games resumes, we are confident that Tencent will be producing more compliant and higher-quality cultural work for society and the public,” a Tencent spokesperson said in December, highlighting its plan to churn out content that fits into China’s ideological agenda.

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See you in Vegas next week!

Posted by | CES, CES 2019, donkey kong, events, Gadgets, Nintendo, pitch-off, shenzhen, Software, TC | No Comments

It’s on like Donkey Kong! We’ll be seeing you next week, on January 9, 2019 at 6:00 PM, where we’ll mingle and run a full TC pitch-off with a bunch of great hardware companies. I’ve added 40 extra tickets, so hurry!

The event will be held at Work In Progress, 317 South 6th Street. Special thanks to those amazing folks who opened their doors to us during one of the busiest weeks in LV.

I’ve contacted the companies that will be pitching. If anyone drops out, I’ll choose some more, so there is still a chance to pitch.

See you soon!

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What China searched for in 2018: World Cup, trade war, Apple

Posted by | Android, Apple, artificial intelligence, Asia, Baidu, China, Entertainment, Facebook, Google, huawei, iQiyi, Netflix, oppo, producer, Qualcomm, quantum computing, search engine, shenzhen, smartphone, TC, Tencent, world cup | No Comments

Soon after Google unveiled the top trends in what people searched for in 2018, Baidu published what captivated the Chinese in a parallel online universe, where most of the West’s mainstream tech services, including Google and Facebook, are inaccessible.

China’s top search engine put together the report “based on trillions of trending queries” to present a “social collective memory” of internet users, said Baidu; 802 million people have come online in China as of August, and many of them use Baidu to look things up daily.

Overall, Chinese internet users were transfixed on a mix of sports events, natural disasters, politics and entertainment, a pattern that also prevails in Google’s year-in-search. On Baidu, the most popular queries of the year are:

  1. World Cup: China shares its top search with the rest of the world. Despite China’s lackluster performance in the tournament, World Cup managed to capture a massive Chinese fan base who supported an array of foreign teams. People filled bars in big cities at night to watch the heart-thumping matches, and many even trekked north to Russia to show their support.
  2. U.S.-China trade war: The runner-up comes as no surprise, given the escalating conflict between the world’s two largest economies. A series of events have stoked more fears of the stand-off, including the arrest of Huawei’s financial chief.
  3. Typhoon Mangkhut: The massive tropical cyclone swept across the Pacific Ocean in September, leaving the Philippines and South China in shambles. Shenzhen, the Chinese city dubbed the Silicon Valley for hardware, reportedly submitted more than $20.4 million in damage claims after the storm.
  4. Apple launch: The American smartphone giant is still getting a lot of attention in China even as local Android competitors like Huawei and Oppo chip away at its market share. Apple is also fighting a legal battle with chipmaker Qualcomm, which wanted the former to stop selling certain smartphone models in China.
  5. The story of Yanxi Palace: The historical drama of backstabbing concubines drew record-breaking views for its streamer and producer iQiyi, China’s answer to Netflix that floated in the U.S. in February. The 70-episode show was watched not only in China but also across more than 70 countries around the world.
  6. Produce 101: The talent show in which 101 young women race to be the best performer is one of Tencent Video’s biggest hits of the year, but its reach has gone beyond its targeted young audience as it popularized a meme, which made it to No. 9 on this list.
  7. Skr: A buzzword courtesy of pop idol Kris Wu, who extensively used it on a whim during iQiyi’s rap competition “Rap of China,” prompting his fans and internet users to bestow it with myriad interpretations.
  8. Li Yong passed away: The sudden death of the much-loved television host after he fought a 17-month battle with cancer stirred an outpouring of grief on social media.
  9. Koi: A colored variety of carps, the fish is associated with good luck in Chinese culture. Yang Chaoyue, a Produce 101 contestant whom the audience believed to be below average surprisingly rose to fame and has since been compared to a koi.
  10.  Esports: Professional gaming has emerged from the underground to become a source of national pride recently after a Chinese team championed the League of Legend finals, an event regarded as the Olympics for esports.

In addition to the overall ranking, Baidu also listed popular terms by category, with staple areas like domestic affairs alongside those with a local flavor, such as events that inspire national pride or are tear-jerking.

This was also the first year that Baidu added a category dedicated to AI-related keywords. The search giant, which itself has pivoted to go all in AI and has invested heavily in autonomous driving, said the technology “has not only become a nationwide buzzword but also a key engine in transforming lives across the globe.” In 2018, Chinese people were keen to learn about these AI terms: robots, chips, internet of things, smart speakers, autonomous driving, face recognition, quantum computing, unmanned vehicles, World Artificial Intelligence Conference and quantum mechanics.

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Google is quietly formulating a new strategy for China

Posted by | Android, Apple, Apps, artificial intelligence, Asia, Baidu, Beijing, China, computing, Getty-Images, Google, Google Play, Google Play Store, google search, HTC, huawei, mobvoi, photographer, premier, Search, shenzhen, smartphone, smartphones, TC, Tencent, United States, Virtual reality, xi jinping, Xiaomi | No Comments

Google is slowing piecing together a strategy for China to ensure that it doesn’t miss out on the growth of technology in the world’s largest country. It’s been months in the making through a series of gradual plays, but further evidence of those plans comes today via a product launch.

Files Go — a file manager for Android devices released last yearhas made its way to China today. Not a huge launch, for sure, but the mechanisms behind it provide insight into how Google may be thinking about the country, where it has been absent since 2010 after redirecting its Chinese search service to Hong Kong in the face of government pressure.

For Files Go, Google is taking a partner-led approach to distribution because the Google Play Store does not operate in China. The company is working with Tencent, Huawei, Xiaomi and Baidu, each of which will stock the app in their independent app stores, which are among the country’s most prominent third-party stores.

Let that sink in a little: the creator of Android is using third-party Android app stores to distribute one of its products.

On the outside that’s quite the scenario, but in China it makes perfect of sense.

There’s been regular media speculation in recent about Google’s desire to return to China which, during its absence, has become the largest single market for smartphone users, and the country with the most app downloads and highest app revenue per year. Mostly the rumors have centered around audacious strategies such as the return of the Google Play Store or the restoration of Google’s Chinese search business, both of which would mean complying with demands from the Chinese government.

Then there’s the politics. The U.S. and China are currently in an ongoing trade standoff that has spilled into tech, impacting deals, while Chinese premier Xi Jinping has taken a protectionist approach to promoting local business and industries, in particular AI. XI’s more controversial policies, including the banning of VPNs, have put heat on Apple, which stands accused of colluding with authorities and preventing free speech in China.

Political tension between the U.S. and China is affecting tech companies. [Photographer: Qilai Shen/Bloomberg via Getty Images]

Even when you remove the political issues, a full return is a tough challenge. Google would be starting businesses almost from scratch in a highly competitive market where it has little brand recognition.

It’s hardly surprising, then, that it hasn’t made big moves… yet at least.

Instead, it appears that the company is exploring more nimble approaches. There have been opportunistic product launches using established platforms, and generally Google seems intent at building relationships and growing a local presence that allows its global business to tap into the talent and technology that China offers.

Files Go is the latest example, but already we’ve seen Google relaunch its Translate app in 2017 and more recently it brought its ARCore technology for augmented and virtual reality to China using partners, which include Xiaomi and Huawei.

Bouquets of flowers lie on the Google logo outside the company’s China head office in Beijing on March 23, 2010 after the US web giant said it would no longer filter results and was redirecting mainland Chinese users to an uncensored site in Hong Kong — effectively closing down the mainland site. Google’s decision to effectively shut down its Chinese-language search engine is likely to stunt the development of the Internet in China and isolate local web users, analysts say. (Photo credit: xin/AFP/Getty Images)

Beyond products, Google is cultivating relationships, too.

It inked a wide-ranging patent deal with Tencent, China’s $500 billion tech giant which operates WeChat and more, and has made strategic investments to back AI startup XtalPi (alongside Tencent), live-streaming platform Chushou, and AI and hardware company Mobvoi. There have been events, too, including AlphaGo’s three-game battle with Chinese grandmaster Ke Jie in Wuzhen, developer events in China and the forthcoming first Google Asia Demo Day, which takes places in Shanghai in September.

In addition to making friends in the right places, Google is also increasing its own presence on Chinese soil. The company opened an AI lab in Beijing to help access China-based talent, while it also unveiled a more modest presence in Shenzhen, China’s hardware capital, where it has a serviced office for staff. That hardware move ties into Google’s acquisition of a chunk of HTC’s smartphone division for $1.1 billion.

The strategy is no doubt in its early days, so now is a good time to keep a keen eye on Google’s moves in this part of the world.

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