Internet Asia - Operator Goes Content

ChinaTechNews.com published that Shanda, which is a big Chinese online game operator, is buying a stake of ca. 29% of Actoz, which is Korean online game operator and publisher. This is bad news for The9, a Chinese online game operator that just announced an IPO.

As Shanda and Actoz get all close and comfortable, the competition on rights for foreign games increases, because every operator-publisher match will lock out some games from general markets - think of HBO and their brand series. This means that operators really need the money so that they can keep getting the content, because If the content sucks, the money stops.

Mobile Asia - China The Sex Police

I noticed this funny piece of news from Reuters. Chinese government has clamped down the popular mobile messaging related sexually oriented content business. Seems like they try very hard to keep people naive about sexuality. I say that is why so many Chinese girls have to get abortion... Censorship cuts the information channels as well as those unwanted social symptoms.

Now the situation will be precarious for investors. If it is illegal, it means that there are markets. Those Chinese mobile content and internet companies, which grow fast might have something politically incorrect on their roster. Big and visible companies will be hurting, since they can't risk stand off with the government.

Third Post - Standing Corrected

Just this morning in my post I was telling how I would prefer investing into mobile games instead of online games. Little did I know... at that very moment my inbox had a newsletter from Mobile Monday. This letter had an article about mobile games in India.

Yes! I must agree. India is even better place to invest in mobile games, because:

• They also have populous market
• Their economy is growing steadily
• Bollywood has strong content production base
• Government allows free flow of ideas
• English is used extensively
• Integral part of world software industry
• Level of education is high
• Low salary levels

Some of the reasons, why I prefer India to China.

Second Post - Breaking The Ground

Chinese online game operator The9 has announced ADS offering. This IPO is estimated to bring the capitalization of the company up to around 330 million dollars.

Is distribution really so profitable that people will pay 13-15 dollars per share, just to get a grip of one among many. There are big companies with good titles and more economic muscle... Seems awfully difficult market to compete in. Granted, The9 operates good games and might be able to gain players for them.
What about the cost structure? World of Warcraft can be quite expensive game for the consumers. They might prefer something more local and cheaper.

I would put my money on Chinese mobile game developer or operator. Those games are cheap to make, quick to localize and easy to deliver. Mobile phones will be in just about every Chinese pocket (talking about people who live in cities) and they are just waiting to be personalized.

You can go and check The9 by yourself, if you want.

First Post - Breaking The Void

My very first post - how exciting. Every day, I will write something about general mobile phone content industry, but mostly I will focus on games. Why games - because I love them. Games come in every size, tech, field, time and space.

Do I have time to measure up to my word? Will I be able to write about this media - every day? No...

Now you know the basic setting, just another blog that shines or blinks for some time and drowns under millions of other blogs.