Reborn multinational giant

"I know, maybe now everyone listens to me, and their hearts are even more hostile to our steam Chinese platform! But think about it carefully, even if we Huizhong did not introduce steam into the country, is there more monks and less porridge, more wolves and less meat? Will the trend change?"

Fang Zhe knew that many of the representatives of Chinese manufacturers in the audience must have had this idea, so he must now let them know the reality.

Fang Zhe paused and continued:

"I still have a set of data, I want to share with you, it is about the growth rate of Tencent Games!

Before 2008, Tencent games accounted for less than 10% of overall revenue. At the end of 2008, this number had increased to more than 20%. Last year, this number increased to more than 30%!

Tencent’s total annual profit has also increased from RMB 1.6 billion in 2007 to RMB 7 billion last year. Among them, the profit of Tencent’s game business has increased from less than 200 million in 2007 to more than RMB 2 billion last year. Over 10 times, it surpassed NetEase and became the online game company with the largest market share in China. Even our game business under Huizhong will be stabilized by Tencent if it only counts domestic market revenue and profits!

So, what I want to tell you is that even if there is no steam China, there is still a big traffic user like Tencent. With it, the traffic cost for publishing and promoting games will only get higher and higher.

As far as I know, the cost of acquiring users in the mobile game industry has risen from two or three dollars three years ago to more than 10 dollars today. It depends on traffic and user scale, let alone all the vendors present here. Everyone and our Huizhong add up, I'm afraid they are no better than Tencent!"

Fang Zhe directly pushed the culprit of all this to Tencent. The representatives of the Chinese manufacturers in the audience also knew in their hearts that Fang Zhe was splashing dirty water on Tencent, but this dirty water did have it. The truth.

When the growth rate of the entire terminal game market continues to slow down and the market becomes saturated, there will be an oligopoly where the strong become stronger and the weak become weaker. The previous Tencent game business has skyrocketed since 2008. Clean up, regardless of whether the growth rate of the entire industry has slowed down, Tencent's game business profits have been growing rapidly, and more than half of the entire terminal game market share later belonged to Tencent!

"After the League of Legends public beta next year, I am afraid you will know what I said is true!" Fang Zhe looked at the representatives of Chinese manufacturers in the audience. Although they were whispering and whispering, most people still felt that Fang Zhe was guilty. Pushing on Tencent is just an excuse to hit Tencent.

Fang Zhe did not know what they said, and continued:

"Therefore, everyone has seen the current end-game environment in the domestic market. The demographic dividend has disappeared and the overall scale growth rate has slowed. However, game manufacturers release only a lot more games every year, even if they are evenly distributed, each game can earn The money will become less and less.

What's more, now our steam China has introduced many overseas games into the country. After domestic players have played various overseas high-quality games, how many people do you think are willing to go back to play those games developed by your manufacturers?"

Fang Zhe’s words, let the representatives of the Chinese manufacturers underneath slander themselves. You are embarrassed to blame Tencent. Why don’t you say that the culprit is your Steam China?Who would think, in the next second, Fang Zhe admitted frankly:

"According to our statistical analysis in the past period of time, a considerable part of the new users on our steam China platform are indeed former game players of your manufacturers, and our investigation found that many people have played games on the steam China platform. After that, I no longer want to go back to play the games you developed. I think everyone should be very clear about the reasons! So we have to say that our steam China is also one of the important reasons for the decline in profits of your manufacturers."

The representatives of the Chinese manufacturers in the audience did not expect Fang Zhe to admit it so generously. Originally, he only thought that Fang Zhe would pour this pot of dirty water on Tencent, but he did not expect that he was a little self-aware.

"Now, with the further expansion of our steam China's popularity, we will soon establish cooperative relations with more overseas manufacturers and some domestic small and medium-sized game developers.

I believe that there will be more and more high-quality games gathered on the steam China platform, and the siphon effect on players will also increase. Therefore, I hope that everyone can work hard with our steam China to do more and have competition in the future. Powerful boutique games will make the Chinese game market bigger and stronger, and make progress together!Thank you!"

Fang Zhe’s remarks caused the representatives of Chinese manufacturers in the audience to think deeply. Nowadays, the domestic end game market environment is indeed getting worse and worse. Even if Huizhong did not introduce steam into the country, the original domestic game developers , There are more and more games released every year. Coupled with more and more resources monopolized by large-traffic users like Tencent, the life of small and medium-sized mobile game developers will only get worse and worse until they are transformed or eliminated. Steam's entry into China is nothing more than accelerating this elimination speed!

Fang Zhe knew that his short speech would not have allowed the representatives of Chinese game makers to clearly turn to Steam China. Everything takes a while. When they see that domestic games such as "Three Kingdoms" that are on the shelves of Steam China are increasing The more popular it is, the higher the cost of its own game promotion, and the thinner its profit, it will naturally move closer to Steam China.

Those who follow me prosper and those who oppose me die!

Among them, "I" is not only the current steam China, but also the current development trend of China's game industry. No company is capable of reversing the general trend, even industry giants such as Huizhong or Tencent are no exception.

Therefore, whether it is Huizhong, Tencent, or Chinese game makers of all sizes, all they can do is take advantage of the trend, and there are only a few roads for their future:

1. Transformation to emerging industries such as web games and mobile games.

2. Strong alliances, oligopoly, through continuous mergers and acquisitions to ensure that they have enough boutique games in their hands, but this method is tantamount to drinking a dove to quench thirst. The game industry is an industry that loves the new and hates the old, even if it is like a fantasy westward journey In classic games like World of Warcraft for more than a decade, the data from active players to profitability is also declining.

The only way to escape fate is the third way. Always keep making new games that can attract players. Just like overseas game companies such as Blizzard and EA that have developed for decades, the nature of the game industry is still continuous Innovation, leaving the word innovation, relying on the game model of plagiarism and copying, after all, will not be long-term.

"Oh, the sky has changed!" Tang Chao, the vice president of NetEase in the audience, whispered a few words in his mouth. He knew in his heart that when steam China took advantage of the trend and stepped on the general trend of the terminal game industry, it was doomed. Steam China, a platform that relies on high-quality game routes to continuously maintain vitality and attractiveness to players, will be one of the outlets for many domestic small and medium-sized game manufacturers that are increasingly unable to survive.

The era of wanting to make copies of games as crudely as in the past and then buy the amount to make money has passed. This industry will only leave behind people who really make games and eliminate those who don't want to make games.

Steam China and Huizhong are destined to become the "Wulin Leaders" of China's end-game industry in the future, relying on the centripetal force of the entire platform to continuously produce new boutique games.

In the past, Tencent, the country’s largest traffic user, also had the opportunity to become the “martial leader” of the game industry. However, it did not and is unwilling. Compared to distributing the traffic to the same crude game manufacturers in China, Tencent is more willing to leave the traffic to Own products, such as CF, DNF, QQ Speed, etc., could it be so!