Game Outsourcing In China Could Reach $US2.5 Billion By 2011

zhuxianonline.jpg It's no secret that companies from all over the world are dumping money into China, both by setting up their own offices and studios, and by partnering up with local Chinese companies to get work done and games made. The promise of lower production costs and a foothold into the quickly growing, potentially extremely lucrative Chinese market are drawing firms and venture capitalists. Now that art and design elements coming out of China are reaching "world-class levels," the fact that Chinese companies have a better handle on Chinese culture (my favourite recently seen job posting for a game planner included the requirement of a degree in Chinese history, literature, or related fields) and local markets means that many companies are formidable competitors and partners indeed.

[Winking Entertainment CEO Gary Zhang]remembers that even three years ago foreign companies had their online games outsourced in China because of its low production costs. But now it is not only about the cost, but great market potential as well.

"The United States and Japan have rushed to the market, which means they have to find a Chinese partner to sustain the business. Conflicts between foreign companies and domestic operators (are common), as we can see from the past," he says, adding that well-developed outsourcing companies like Winking might be the best solution.

PlayNoEvil predicts "it is quite likely that these companies will grow to be the next generation of publishers and that these outsourced firms will be buying the traditional computer game publishers."

Fund and Games [China Daily via PlayNoEvil]


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