Chinese Game Companies Entering U.S. Better Not Skimp On Localization

2010-01-22

Chinese companies have been exporting to the U.S. for a very long time, and very successfully at that. However, they haven't been doing much of their own marketing, branding and distribution. No surprise, really. In some ways, branding issues aside, this is how U.S. companies broke into the China market. For foreign companies, there was no choice for a long time, as distribution was restricted on a number of fronts (but pretty much opened up from 2004).

As foreign companies racked up more years in China, hired more local managers, and after the laws changed, the entire post-manufacturing chain was taken away from the domestic entities. Foreign companies have had big problems adapting to this unique market, but they've made tremendous progress over the years.

Now there are lots of successful Chinese companies looking to break into overseas markets, and not just with the traditional manufacturing exports. Those are easy compared to services, information technology, and anything that might need localization.

And games. Specifically online games.

China's biggest online game companies are increasingly looking to offer games in the U.S., bringing with them a game model where users play for free but must pay to get certain power-ups for their characters.

Sounds like a good idea? Gaming companies here are doing very well, and their business model is very different from that of most U.S. games, which are based on monthly fees. Maybe there is an untapped U.S. market for folks who would be attracted to the "no fee" system.

Perhaps. But that assumes that the group in question would be attracted to China-type games.
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