UC 9Game: 80% of Chinese game developers can't get their money back

The Xsolla company took for App2Top.ru an interview with one of the Chinese alternative mobile stores — UC 9Game.  

Hi! First of all, tell us a little bit about what UC 9game does?

UC 9game is a mobile store running within the framework of the UC Brower browser (developed by UCWeb). 

What can you boast about? 

The total MAU of our projects is 60 million. Besides UC Brower, which brings about most of the traffic, we have a gaming portal 9game.cn , the 9game client and other auxiliary sources of user engagement. 

In 2012, UC 9game helped its partners earn 100 million yuan (about $16 million), and a year later the deductions amounted to 300 million ($48 million).

Look, the obvious question, but still: why, for example, should I, as a developer, go to you or any other unofficial store. Is there an App Store and Google Play?

Any new channel offers an additional audience for the project, and is also naturally an additional source of income. But, more importantly, without additional platforms for the developer, the task of promoting the game will be extremely difficult. This is the situation in emerging markets. In the USA, everything is somewhat different. Google and Apple dominate there.

Alternative mobile stores have many advantages. There is less competition here, which means the game is easier to promote. Often such sites do not charge a commission for in-app purchases, which promises developers substantial dividends. Alternative platforms provide more opportunities for connecting local payment systems. In terms of audience coverage, this is a significant plus.

Favorable conditions have emerged in China for the emergence of new app stores. There is no culture of buying apps directly from Google in the country. New consumers mostly rely on alternative stores. Big gaming companies are building their own ecosystem in China and promoting it.

In the USA, by comparison, there is a very strong legal market, Google Play and the App Store. And although some large Asian companies, like Samsung, also have stores in the United States, they cannot compete with local whales.

This year, many Chinese mobile games want to expand beyond the country. UC has more than 500 million users worldwide. Are you going to promote your projects outside of China?

According to forecasts, the profit of the Chinese gaming market will increase to 130-150 billion yuan ($20.81 — 24.01 billion) in 2014. At the same time, the revenue of the mobile segment will amount to 23-25 billion yuan ($3.68 billion — 4 billion) and is likely to increase. In the next 3 years, everything will be fine in China with mobile games, but we continue to look for new opportunities to promote domestic products.

The 9game portal began operating outside China in India and Vietnam and gained 100 million foreign users. In India, our market share exceeds 30%, which ensures the first place in the region. Demand in India is greater than in China, but the market is not developed, if we talk about developers and payment systems. If gamers continue to like our games, we will be able to establish cooperation with local companies to create a more extensive infrastructure.

We use Xsolla to enter the international market.

What do you think about Western markets? Is there a place for Chinese companies there?

In just a few years, the mobile entertainment market in China has been able to achieve significant success. The audience is becoming more diverse. In China, most mobile users are not used to spending money on games. 80% of developers cannot even return the invested funds. In reality, only 10% of them earn money. We expect international markets to expand in 2014, which will give Chinese studios more opportunities.

We need a powerful product promotion system, a wide range of products, a data processing system, and round-the-clock support. Regardless of B2B or B2C, online and offline, cross-media promotion and good advertising remain the key to a successful business. New distribution channels are never superfluous.

How to make the game successful in China?

A good IP gives you a great advantage. Card games and RPGs remain mainstream. The beta test is an important step towards success. These are all the main trends.

In 2014, the following factors will influence the popularity of the game:

• Unusual gameplay;
• An empty niche;
• The right time for a release;
• Reliable technical base;
• Professional marketing.

ARPG will remain one of the most popular genres. In 2013, the profitability of games of this kind increased from 11.41% to 41.22%. Users are gradually becoming attached to such games.

Does UC plan to work with wearable computers or smart TVs?

We are thinking about a multi-screen strategy and are actively promoting systems for smart TVs and browsers. As for wearable computers, we have yet to draw up a detailed development plan for this platform.

Thank you so much for the interview!

Interviews for App2Top.ru The company took Xsolla, a global service offering payment solutions to game developers and publishers.