Bridging the Divide : Western Development and Chinese Culture

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Bridging the Divide: Western Development and Chinese Culture Richard Tsao – Managing Director Jean-Francois Vallee – Technical Production Manager Ubisoft Chengdu March 2010 www.creatorsofemotion.com

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Bridging the Divide : Western Development and Chinese Culture. Richard Tsao – Managing Director Jean-Francois Vallee – Technical Production Manager Ubisoft Chengdu March 2010. www.creatorsofemotion.com. …a future leader in the online game industry? . www.creatorsofemotion.com. - PowerPoint PPT Presentation

Transcript of Bridging the Divide : Western Development and Chinese Culture

Page 1: Bridging the Divide :  Western Development and Chinese Culture

Bridging the Divide: Western Development and Chinese Culture

Richard Tsao – Managing DirectorJean-Francois Vallee – Technical Production Manager

Ubisoft ChengduMarch 2010

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…a future leader in the online game industry?

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Why How Challenges

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CHINESE GAME INDUSTRY

Consoles, PC Games and Piracy

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KING OF KING

1st MMORPG was born

2010

2000

2004

2005

2007

2009

Tencent, The9 & Shanda went publicShanda become No.1

FANTASY WESTWARD JOURNEY

WORLD OF WARCRAFT

Shanda started F2P

Perfect World & Giant went public

ZT ONLINE

DUNGEON FIGHTER ONLINE

Tencent became new No.1 NetEase took over WoW

A 10-YEAR OLD INDUSTRY

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PC Online Games

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CHINESE GAME INDUSTRY

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Official number of Online game player population?

69 million (through 2009)

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CHINA, A BOOMING MARKETSource: China’s Ministry of Culture

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2005 2006 2007 2008 20090

0.5

1

1.5

2

2.5

3

3.5

4

0

0.1

0.2

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0.5

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US$0.7B

US$3.8B

0.43

0.660.63

0.39

Online Game Market Size In China

Market Size (US$ in billions) Annual Grwoth

CHINA, A BOOMING MARKETSource: China’s Ministry of Culture

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361 existing online games (Open Beta)

MMORPG vs. MMO others = 79% vs. 21% Top 3 players combined take up 52.9% market

shares

DUNGEON FIGHTER ONLINE

AION, LEGEND OF MIR 2

WOW, FANTASY WESTWARD JOURNEY

CHINA, A BOOMING MARKETSource: China’s Ministry of Culture

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No. Title Genre BusinessModel

Developer Publisher2009 PCU

(* estimation)

1 Fantasy Westward Journey MMORPG Hourly NetEase NetEase 2,560,000

2 Dungeon Fighter Online

MMO  Action F2P

Neople (owned by Nexon, Korea)

Tencent 2,100,000

3 Cross Fire MMOFPS F2P SmileGate (Korea) Tencent 1,600,000

4 World of Warcraft MMORPG Hourly Blizzard (US) NetEase 1,300,000

5 Westward Journey 2 MMORPG Hourly NetEase NetEase 1,100,000

6 ZT Online MMORPG F2P Giant Giant 1,000,000

7 AskTao MMORPG F2P G-Bits Guangyu Huaxia 1,000,000

8 QQ Dance MMO Music F2P Tencent Tencent 1,000,000

9 Dragon Oath MMORPG F2P Changyou Changyou 900,000

10 QQ Speed MMO

Racing F2P Tencent Tencent 800,000

TOP 10 GAMES OF CHINA FOR 2009

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No. Title Genre BusinessModel

Developer Publisher2009 PCU

(* estimation)

1 Fantasy Westward Journey MMORPG Hourly NetEase NetEase 2,560,000

2 Dungeon Fighter Online

MMO  Action F2P

Neople (owned by Nexon, Korea)

Tencent 2,100,000

3 Cross Fire MMOFPS F2P SmileGate (Korea) Tencent 1,600,000

4 World of Warcraft MMORPG Hourly Blizzard (US) NetEase 1,300,000

5 Westward Journey 2 MMORPG Hourly NetEase NetEase 1,100,000

6 ZT Online MMORPG F2P Giant Giant 1,000,000

7 AskTao MMORPG F2P G-Bits Guangyu Huaxia 1,000,000

8 QQ Dance MMO Music F2P Tencent Tencent 1,000,000

9 Dragon Oath MMORPG F2P Changyou Changyou 900,000

10 QQ Speed MMO

Racing F2P Tencent Tencent 800,000

TOP 10 GAMES OF CHINA FOR 2009

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No. Title Genre BusinessModel

Developer Publisher2009 PCU

(* estimation)

1 Fantasy Westward Journey MMORPG Hourly NetEase NetEase 2,560,000

2 Dungeon Fighter Online

MMO  Action F2P

Neople (owned by Nexon, Korea)

Tencent 2,100,000

3 Cross Fire MMOFPS F2P SmileGate (Korea) Tencent 1,600,000

4 World of Warcraft MMORPG Hourly Blizzard (US) NetEase 1,300,000

5 Westward Journey 2 MMORPG Hourly NetEase NetEase 1,100,000

6 ZT Online MMORPG F2P Giant Giant 1,000,000

7 AskTao MMORPG F2P G-Bits Guangyu Huaxia 1,000,000

8 QQ Dance MMO Music F2P Tencent Tencent 1,000,000

9 Dragon Oath MMORPG F2P Changyou Changyou 900,000

10 QQ Speed MMO

Racing F2P Tencent Tencent 800,000

TOP 10 GAMES OF CHINA FOR 2009

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No. Title Genre BusinessModel

Developer Publisher2009 PCU

(* estimation)

1 Fantasy Westward Journey MMORPG Hourly NetEase NetEase 2,560,000

2 Dungeon Fighter Online

MMO  Action F2P

Neople (owned by Nexon, Korea)

Tencent 2,100,000

3 Cross Fire MMOFPS F2P SmileGate (Korea) Tencent 1,600,000

4 World of Warcraft MMORPG Hourly Blizzard (US) NetEase 1,300,000

5 Westward Journey 2 MMORPG Hourly NetEase NetEase 1,100,000

6 ZT Online MMORPG F2P Giant Giant 1,000,000

7 AskTao MMORPG F2P G-Bits Guangyu Huaxia 1,000,000

8 QQ Dance MMO Music F2P Tencent Tencent 1,000,000

9 Dragon Oath MMORPG F2P Changyou Changyou 900,000

10 QQ Speed MMO

Racing F2P Tencent Tencent 800,000

TOP 10 GAMES OF CHINA FOR 2009

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China’s past: A sign of the future

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CHINA’S PAST: A SIGN OF THE FUTURE

Release Date: Nov. 2008

Release Date: June 2009

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CHINA’S PAST: A SIGN OF THE FUTURE

Release Date: Nov. 2008

Release Date: June 2009

Developer: Five Minutes (Shanghai) Number of players: 23 million DAU through 2009 Not on Facebook: Chinese version at Renren.com, later

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WHAT IS CHINA’S CASUAL MMO

Micro transactio

nsDouble Dragon

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WHAT IS CHINA’S CASUAL MMO

Micro transactio

nsNBA

Street

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WHAT IS CHINA’S CASUAL MMO

Micro transactio

nsMario Kart

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50+ Developers (Perfect World & Changyou)

40+ Developers (Shanda, The9, EA, Ubisoft & THQ)

30+ Developers (Tencent, NetEase & Kingsoft)20+ Developers

(Branches of major developers)

DEVELOPERS IN CHINA

More Than 160 Developers Nationwide

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DEVELOPERS IN CHINA

A few foreign developers

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Focused on Western Market

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Local Presence

Local Develope

rsLocal

Games

Learn here first, and export best practices.

HOW TO LEARN FROM CHINESE GAME INDUSTRY?

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China’s Culture

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Humanity

Ritual

Loyalty

Filial PietyRelationships

Perfect gentleman

Rectification of

names

CONFUCIANISM

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Connections

FavorsBalance

GUANXI - NETWORK

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Lose Face

Save FaceGive Face

MIANZI - FACE

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NEW INFLUENCES

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New Influenc

es

One Child

Property Bubble

Catch up to West

Consumerism

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Guidelines

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Mianzi GuanxiCONFUCIANISM

LEARN THE CULTURE

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Expat

Open-Minded

Optimistic

China Experienc

eChinese

Language

Patient

Core Values

SELECT YOUR EXPATS

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Technical

Skills

Core Values

Soft Skills

HIRING IS KEY !

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Training is a must

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SCRUM

Clear Goals

Short Cycles

Course Correctio

n

Breaking Large Strategic Goals in small tasks no longer than 1 month

STRATEGY vs. TACTICS

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English is ForeignCultural InfluencesAmbiguityCulture References

MASTER COMMUNICATION WITH CHINESE

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Wrapping Up...

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Chinese Market

Online business model

Scalability

ADVANTAGES

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The future leader in online games!

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CASE STUDY – CHENGDU CITY

Good pool of raw talent of artists and programmers• Didn’t compete with ourselves for recruitment• Escaped the rat race effect

Technology infrastructure for IT company was really available

Government support and subsidiesNo other major global game developer/publisher at the time

Physical separation from the Tier 1 cities

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Ubisoft Chengdu

(Est. 2007)

Expat MD

Expat Managers

RookiesGrooming Leadershi

pExperienced Support

Staff

CASE STUDY – UBISOFT CHENGDU

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Work In Progress

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谢谢[email protected]

[email protected]

THANK YOU

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Q & A

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Appendix

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KEY SOURCES

Internet and magazine articles Books Li Min “Hattie” – [email protected] Omar Bouali – [email protected]

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First dynasty: Xia Mostly warlords waging

wars

2100 BC

2010

HISTORY – ANCIENT2100 BC – 221 BCSource: Wikipedia

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Qin Dynasty – Unified China Han Dynasty – Unified

language Three Kingdoms Imperial rule ended by 1912

HISTORY – IMPERIAL221 BC – 1911

2100 BC

2010

Source: Wikipedia

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1912 – Republic of China 1949 – People’s Republic of

China under Mao – Ctrl-Alt-Del 1978 – Deng Xiao Ping in

power

HISTORY – MODERN1912 – Today

2100 BC

2010

Source: Wikipedia

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Deng Xiao Ping(1904-1997)

“I don't care if it's a white cat or a black cat. It's a good cat so long as it catches mice.”

Opening Up Socialism with Chinese characteristics

One Country, Two Systems

Source: Wikipedia

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COUNTRY AND POPULATIONSource: PopulationData.net, 2010

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Rank Population Size(km2)

Density(per km2)

Year

Russia 141 927 199 17 075 400 8.31 2010

Antarctica 1 500 14 000 000 0 2007

Canada 33 993 106 9 970 610 3.41 2010

USA 308 470 703 9 629 047 32.04 2010

China 1 338 612 968 9 574 479 139.81 2009

Ranked by size

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COUNTRY AND POPULATIONSource: PopulationData.net, 2010

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Rank Population Size(km2)

Density(per km2)

Year

China 1 338 612 968 9 574 479 139.81 2009

India 1 166 079 217 3 287 240 354.73 2009

USA 308 470 703 9 629 047 32.04 2010

Indonesia 237 512 355 1 904 443 124.71 2008

Brazil 192 298 177 8 547 877 22.50 2010

Ranked by population

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Year 2000 Year 2005 Year 2007 Year 2008-2

0

2

4

6

8

10

12

14GDP growth (% annual)

%

ECONOMYSource: World Development Indicators database, September 2009

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ECONOMYSource: World Development Indicators database, September 2009

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2002 2003 2004 2005 2006 20070

200

400

600

800

1000

1200

1400

1600

1800

2000

Income(per capita)

USD

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ECONOMYSource: http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

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List of countries by GDP (nominal)