Qihoo 360 is not one of the well-known Chinese PC online game operators, but it is a publicly traded (QIHU) internet services and security software provider that has several business units including value-added services that primarily encompass PC webgames and mobile games. 360 Assistant is a popular market for mobile apps. The company announced Q2 financials and reported that revenue from value-added services was $146.2 million, up 140% YOY and 17.2% QOQ. This demonstrates the strength of both webgames and mobile games in China this year, and should serve as notice to the major PC online game operators who have not emphasized webgames or mobile games that those segments are red hot.
Xiaomi announced another pillar of its console market strategy, a partnership with US-based console maker Ouya in which Ouya will provide games to Xiaomi’s set-top boxes and other devices. Some market observers are skeptical about the potential benefit to Xiaomi by Ouya, yet others note that Xiaomi is clearly rounding out a full “living room entertainment” strategy to layer onto its mobile device success in China.
According to a survey conducted by the Electronics Transaction Development Agency (ETDA), Thai people on average spend at least 7.2 hours per day or 50.4 hours per week surfing the web. The survey was conducted on a sample of 16,596 Internet users during April to May in 2014.
According to a report on 17173.com, BesTV stated that the Chinese government has approved 5 million Xbox One units to be sold in China, and BesTV projects sales of 50 million units in the next 5 years. The China price is RMB 3,699 (USD $600), higher than the sales price in western markets.
Niko Partners notes that even upon launch of Xbox 360, PS3, and Wii several years ago, the total sales in China of consoles was roughly 1.7 million units per year (hence, 5 million units of Xbox One in year one seems ambitious, and another BesTV spokesperson previously had forecast sales of 1.2 million in year one). Yes, those were grey market units, but buyers typically were unaware that they were buying something that had been illegally imported.
In addition, the government ultimately benefits from sales of both Xbox One and PS4, as state funds are invested in the parent company of the partners for both Microsoft and Sony for console sales in China.