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TMCNet: CHINA'S MOBILE GAME MARKET TO HIT US$263 MLN IN 2009: REPORT

[July 02, 2009]

CHINA'S MOBILE GAME MARKET TO HIT US$263 MLN IN 2009: REPORT

BEIJING, Jul 02, 2009 (AsiaPulse via COMTEX) -- China's mobile game market size is expected to reach 1.8 billion yuan (US$263 million) this year, up 38.5 per cent year on year, according to an industrial report on China's mobile Internet industry released by iResearch Consulting Group (iResearch).

With the acceleration of China's 3G commercialized operation, mobile entertainment service will become a crucial driving force boosting the increase of mobile Internet businesses, and the mobile game, as one of the key parts of mobile entertainment services, is developing rapidly.

Currently, improved environment of mobile Internet market and advanced handset terminal functions have placed a solid foundation for mobile game's development, and the service is expected to be a business aspect with high growth in the mobile Internet industry.

iResearch believes that China's mobile game market has entered into a growing period, which is reflected in the following aspects stated below: -- 3G improves the operating environment of mobile game, the user base expands in great pace, and the number of newcomers soars; -- Industrial participators become increasingly conscious about the development trend of the mobile game market, and uncertain factors that may impact the industry chain lessen gradually; -- Contents of mobile game verify, game quality increases, and the mobile Internet game shows a booming trend.

In view of the huge development potential of the mobile game market, leading firms of other industries, namely Nokia Group, Apple Inc., Shanda Interactive Entertainment Ltd.

(SNDA.NASDAQ), TechFaith Wireless Inc. (CNTE.NASDAQ) and Electronic Arts Inc., have long joined in the business and actively arranged the opening strategic moves in the mobile game market.

Besides, industrial participators, such as Kong.net (KONG.NASDAQ), d.cn and Joyes.com, have reinforced their leading status through enhancing the capacity of research and development, integrating resources of high-quality and expanding marketing channels.

Meanwhile, acquiring mobile game developing firms through capital operation is the major method for industrial leaders to enhance their competitive advantage and newcomers to enter the market. The competitive structure of China's mobile game industry is expected to change along with the participation of more enterprises, and a fresh mobile game ecological chain will be formed accordingly.

iResearch held that upstream and downstream resources of the mobile game industry are still in the process of integrating, and telecom operators are the major driving force for the resource integration; innovation on mobile game charging method and expansion of marketing channels are the focuses of the industry; and broadband mobile Internet and industrial policies would determine the development trend as well as the competitive structure of China's mobile game market.

The consultant suggested that mobile game developers should enhance cooperation with telecom operators, terminal manufacturers, cellphone web portals and professional game vertical websites to expand the resource of marketing channels, and pay attention to the brand promotion of mobile games to accelerate the development of the whole mobile game market.

(XIC) cg

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