From March 12 to 13, renowned game industry service providers Xsolla and Beluga Global held separate "going global"-themed events in Chengdu. On March 20, Kchuai, a leading domestic internet platform specializing in overseas cooperation, will collaborate with multiple organizations to host a "going global" salon in Chengdu. On March 27, Beluga Global, Tencent Cloud, and several other organizations will jointly host a conference focused on the international expansion of games and micro-dramas. More events are set to take place.
Recently, there has been a wave of positive developments that highlight the Sichuan game industry's growing momentum in global expansion. In February, the domestic game "Code Name: Daybreak", a collaborative project between the Game Innovation and Development Center of Sichuan and Sichuan Digital Publishing Media Co., Ltd., ranked among the top sellers on the internationally renowned game platform Steam. The Chengdu-based mini-game giant Uni-Star Interactive recently submitted a listing application to The Stock Exchange of Hong Kong, aiming to go public.
Game industry professionals rooted in Sichuan are venturing abroad to explore new markets, carrying the rich cultural heritage of Sichuan, actively seeking growth opportunities, and charting new courses for the digital cultural industry.
Games Going Global Continue to Show Strong Growth in Scale
Data shows that the scale of Chinese games going global has been maintaining a relatively high growth rate. The 2024 China Game Going Abroad Research Report, released by the Game Publishing Committee of the China Audio-video and Digital Publishing Association, reveals that the actual sales revenue of Chinese self-developed games in overseas markets reached 18.557 billion U.S. dollars last year, marking a year-on-year increase of 13.39 percent. As the main hub of the digital creative industry in the province, the Chengdu area of China (Sichuan) Pilot Free Trade Zone saw a 56 percent year-on-year increase in the number of new game enterprises last year, ranking second in the national growth rate, and the area leads the country in the proportion of research and development (R&D) investment. Notably, several of China's top 30 game companies focused on global expansion have established a presence in the area.
In late February, Chen Liju, an official responsible for Creative Industries Trade and Investment at the UK Department for Business and Trade, visited Chengdu to promote collaboration, extending an olive branch by offering multiple policy supports for the game industry. He said, "Chinese games are highly popular in the UK, which is a key reason why we came to Chengdu, a major gaming hub, to promote the UK game market."
As the trend of expanding into international markets continues, new challenges are emerging. "Players continue to engage in gaming, but their game sessions have become more fragmented and faster-paced," noted Li Hongxian, who leads the game business for the eastern coastal and central-western regions at Google's vendor operation department. Over the past two years, the cumulative time global mobile game users spend launching games has remained relatively stable, yet the average length of each gaming session has shortened by 13 percent, Li further elaborated. As a result, the competition among game developers for user time will escalate.
In order to thrive in this increasingly competitive landscape, the intrinsic quality of the games themselves becomes the cornerstone. Xia Siyuan, the Chief Technology Officer of Chengdu Leenzee Technology, the development team behind the new action game "Wuchang: Fallen Feathers", believes that the explosive popularity of "Black Myth: Wukong" has showcased that domestic games have made significant strides in the narrative, gameplay and technical capabilities, allowing them to compete on the global stage.
Companies Ramp up Expansion in Southeast Asian and North American Markets
Seeking R&D, distribution, and translation services, among other needs, professionals with backpacks and coffee cups in hand engaged in efficient, concise communication at the venue where Xsolla hosted its global expansion event. After a conversation, they added each other as WeChat contacts and then proceeded to seek out new potential partners. This brisk pace of communication persisted in a continuous cycle until the event came to a close.
Moving through the venue, Li Minghao, a member of the Hansi team specializing in language and voice services for global expansion, has already identified numerous game clients seeking to enter international markets. "The majority of game companies' language translation needs are concentrated in Southeast Asia and North America," said Li Minghao.
Persons in charge from several Sichuan game companies noted that players in the mature North American market exhibit a high willingness to pay, while Southeast Asian developing countries, as emerging markets, boast large populations and are seeing a steady increase in consumer spending power. Established domestic game companies have unanimously recognized that, to unlock new growth opportunities, they should enhance their presence in the mature North American market and the emerging Southeast Asian market while expanding globally through differentiated strategies. "Three strategy games are lined up for sequential release in the North American market this year, with plans for subsequent promotion and operation in the Southeast Asian market," said Zhang Jiaquan, Deputy General Manager of Chengdu iFUN Technology Co., Ltd. Given the North American market's significant number of high-net-worth players, the company expected that through innovative gameplay and prudent management, they could establish a strong reputation in this market, Zhang said.
Chengdu Uminton Interactive Technology Co., Ltd., a company specializing in sports games, recently conducted a pilot launch in the Southeast Asian market, achieving highly favorable results. Wang Jian, Chairman and General Manager of the company, remarked, "The Southeast Asian market has added over 60 percent to our income, building upon the revenue generated in the domestic market."
Venturing into "Uncharted Waters", Talent is the "Ballast Stone"
"We are putting in our full efforts to create the next benchmark product," said Tian Haibo, founder of Chengdu Ebgame Information Technology Co., Ltd. Following the success of its game "Mortise &Tenon", the upcoming release, "Codename: Twenty-Four Solar Terms", is met with even higher anticipations.
This game, themed around traditional Chinese solar term culture, is expected to launch by the end of May. "We aim to integrate Sichuan's cultural and tourism attractions into the game. When presenting it to overseas players, we strive to cater to the aesthetic preferences of players from different regions while also retaining our core elements, hoping to bring a deeper emotional connection with users."
Focusing on building emotional connections with international players marks a shift in the strategy for global expansion. Wang Jian believes that going global has entered "uncharted waters", and at this stage, deeper cultural integration and market adaptation are essential. "There is no one-size-fits-all navigation chart for games going global; it's more about implementing refined operations that are tailored to the characteristics of specific markets, one by one," Wang said. "The linchpin is the overseas operation talents who possess a deep understanding of local culture, player preferences, and market nuances. Currently, such talents are in relatively short supply."
"Talent serves as a 'ballast stone'," Tian Haibo emphasized. "The game industry is talent-intensive, making it crucial to establish an effective talent attraction mechanism."
The game "Museum No. 9" has been available in overseas markets for just over a month. Its developer, Chengdu Yaoyi Technology Co., Ltd., a compact team, also mentioned its need for talent. The company's head, Yao Yuchen, stated, "Currently, we have released English, French and German versions, but some mainstream market languages are still not covered. We hope to find more translators suited for small game development teams to assist us."
To support the further global expansion of "Sichuan-made" games, the Game Innovation and Development Center of Sichuan will launch the Sichuan High-Quality Game Incubation, Publication, and Distribution Support Program this year, aiming to actively build a high-quality game library for the province and amplify the global influence of Sichuan's premium games. A relevant person in charge of the center explained that a special fund for Sichuan game companies' international expansion will be launched this year to provide financial support for qualifying enterprises. Additionally, the center plans to establish a talent pool for Sichuan game companies' overseas development, delivering outstanding international talent to these companies.
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