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Online gaming in China

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Online gaming in China represents one of the largest and fasted growing Internet business sectors in the country. With 137 million Internet users currently active in the PRC, the country now has the second largest online user base in world, second only to the United States of America. According to statistics provided by the China Internet Network Information Center, as of January 2007 31 million of Chinese Internet users engage in some form of online game play.[1] The average online gamer in China is relatively young (18 to 30 years old), male, and has at least completed a secondary level of education.[2] Demographically the online gaming user base in China is very similar to base of China Internet users, most of whom live in larger cities.[3]

Official Chinese statistics regarding online gaming state that as of the close of 2006 revenue from China's onling gaming industry reached 8 billion RMB or around 1.04 billion US dollars, with earnings reaching around 33 billion RMB or 4.3 billion US dollars. Additionally, while American, Japanese, and Korean companies have traditionally dominated the market, Chinese developed software now holds a 65% market share on the mainland, with an additional 20 million in revenue generated by users outside of China.[4]

Online games in China fall into two primary categories: MMOGs and MOCGs, the former have a predilection for persistent online worlds where hundreds to thousands of game players can interact simultaneously; the latter is a generic term for games played competitively online without the existence of a persistent online realm (games as simple as online Ma Jiang and online competitive card games would fall under this category).


Government Involvement

Ministry of Information Industry

The Ministry of Information Industry (MII) of the People's Republic of China(中华人民共和国信息产业部)formed in the late 90's through the integration of the Ministry of Post and Telecommunications and the Ministry of Electronics Industry. The agencies primary goals include the regulation of Chinese telecommunications and software companies. Listed here are the ministry's stated objectives involving online gaming:[5]

  • Study and formulate the state's information industry development strategies, general and specific policies, and overall plans, revitalize the electronics and information products manufacturing, telecommunications and software industries, promote the information economy and society.
  • Draw up laws, rules and regulations on electronics and information products manufacturing, telecommunications and software industries, and publish administrative rules and regulations; and supervise the enforcement of laws and administrative rules.
  • Work out technical policies, systems and criteria of the electronics and information products manufacturing, telecommunications and software industries, and technical systems and criteria of the radio and television transmission networks; certificate the entry of telecom networking equipment to networks and manage the entry of telecom terminal equipment to networks; direct the supervision and management of electronics and information products quality.
  • Propel the research and development of electronics and information products manufacturing, telecommunications and software industries, organize research of major scientific and technological development projects, and digestion, absorption and creation of imported technologies, and promote the industrialization of scientific and technological research results; support the development of native industry.

The ministry is also responsible for a number of initiatives aimed at increasing the number and prominence of natively produced online games. One example of such involvement is the inclusion of online gaming in the 2006-2010 plan for software and information service development.[6]

Government Administration of Press and Publication

The Government Administration of Press and Publication(GAPP) of the People's Republic of China (中华人民共和国新闻出版总暑)is responsible for monitoring and regulating publication of print based media, electronic media, and audio-visual products (including online games).[7] The ministry has also been instrumental in combating the growing problem of Internet addiction and game addiction in China by teaming up with eight other government outlets concerned with the growing effect of game play on China's youth. The other concerned entities are as follows: Central Civilization Office, Ministry of Education, Chinese Communist Youth League, Ministry of Information Industry, Ministry of Public Security, All China Women's Federation, and China's Care for the Next Generation Work Commission.[8]

The GAPP also initiated the China National Online Game Publication Project in 2004. The intent of the project was to promote native game development through the use of government subsidies to game developers. In its third year, the project is to run through at least 2008, and has provided an estimated 300 million RMB to 16 Chinese game development companies. [9]

References

  1. ^ China Internet Network Information Center. "19th Statistical Survey Report on Internet Development in China". January 23, 2007.
  2. ^ People's Daily Online. "China's Online Game Industry on a Roll". 2007.
  3. ^ China Internet Network Information Center. "19th Statistical Survey Report on Internet Development in China". January 23, 2007.
  4. ^ People's Daily Online. "China's Online Game Industry on a Roll". 2007.
  5. ^ [1]
  6. ^ People's Daily Online. "China's Online Game Industry on a Roll". 2007.
  7. ^ chinaculture.org. "General Administration of Press and Publishing of PRC".
  8. ^ China Tech News. "Chinese Ministries Schedule Anti-Addiction Game System". April 11, 2007.
  9. ^ TDC Trade."Business Alert - China". January 2005.