gaming
Apple may buy Chinese online game developer Handseeing
Aug
US technology giant Apple is planning to buy a Chinese online game developer Handseeing Information Technology.
Apple in negotiations with Handseeing
Founded in 2005, Handseeing develops Java-based online games, in partnership with Sun Microsystems, for China's largest social networking forum Tianya Online.
Apple has been in negotiations with the Chinese firm for a certain period of time and an announcement about a deal can be expected in September. The transaction might reach more than $150 million.
Apple's first acquisition in China?
Apple hasn't made any acquisition in China yet. If the deal with Handseeing is successful, it would be the Cupertino, California-based company's first acquisition in the country.
However, other foreign firms are also interested in Handseeing and Apple could face fierce competition. Apple currently sells its popular iPhone through China's mobile operator Unicom. It opened last month a store in Shanghai, the second one in China.
Globally, the popularity of the iPhone and the iPad is largely due to the App Store (225,000 applications ranging from games to business tools are available for download).
Apple has built its Game Center technology, part of the iOS 4 operating system, as a "new social gaming network" and with Handseeing specializing in online gaming applications, the firm must nicely fit into Apple's business model.
China's online gaming market is soaring
Another reason why Apple wants to acquire Handseeing is because it will help it get a foothold on China's growing online gaming market.
The total number of online gamers in China is currently estimated at around 80 million or about a fifth of the country's total Internet community (China's online population recently hit 420 million).
However, some analysts wondered why Apple was interested in Handseeing as the Chinese company develops Java-based online games and Apple products currently don't support Java.
Challenges and opportunities in the eCommerce market: bwin case
Aug
I attended yesterday a very interesting seminar organized by the European Union Chamber of Commerce in China on "challenges and opportunities in the eCommerce market". The speaker was bwin's CTO Dr. Thomas Kiessling.
bwin, now the world's largest online gaming company
bwin is the world's leading publicly-listed online gaming platform after its merger with British gaming firm PartyGaming in July 2010. It's an Austrian based online betting company which offers sports betting, poker, casino games, soft and skill games to more than 20 million users in 25 countries.
Among the 1,600 bwin employees, Dr. Thomas Kiessling manages 750 people in Vienna, Romania, Poland and Stockholm, including 320 developers.
Localization is vital to succeed in eCommerce
When you talk about eCommerce, localization is a key success factor. You have to customize your eCommerce for a particular geographical market (it can be a country or a region) in order to understand your local target customer base.
What is important to realize is that it goes beyond simple translation of products.
- Customize sport offerings for local markets ;
- Local domain names utilized ;
- Local payment methods ordered by consumer preferences.
Due to the differences of the markets and regulation, bwin has also to face many challenges like KYC (Know Your Customer), AML (Anti-Money Laundering), customer verification, content and payments.
Why localization is important: example of payment methods
bwin offers more than 100 different payment methods. Why that? Because despite the open market, the EU is a good example of a highly heterogeneous environment where many cultural differences still remain among the countries.
Europeans do not have the same trust and usage towards payment methods. bwin has to offer several payment methods for each specific country. For instance, while bank transfers are the preferred payment method in Germany, the French will preferentially pay with credit card.
By the way, Globally credit card usage is on the decline while online banking usage is rising.
Moreover, Dr. Thomas Kiessling says that fraud management is a topical issue for bwin. He claims that fraud makes-up 1% of all eCommerce transactions and car-not-present fraud is on the rise.
bwin in China
As you may know, online sports betting, poker and casino games are forbidden in China. However, bwin decided to open offices in Beijing in 2007 in order to find opportunities and study the Chinese market.
In case of an opening of the market, bwin China wants to be ready. bwin is also assessing the possibility of joint ventures given China's market specificities.
bwin's CSR: responsible gaming
A dedicated Corporate Social Responsibility department of the company guarantees that products are designed in a way that offers maximum social responsibility: protection of minors, protection against manipulation of bets as well as prevention of gaming addiction.
In order to prevent users from gaming addiction, bwin develops software that can detect patterns among possible addicted users. However, due to strong European regulation about privacy, bwin's main challenge is to find a right balance between personal data usage and responsible gaming.
bwin also supports research in this field in a joint project with Harvard Medical School.
China to control online gaming
Jun
China’s Ministry of Culture established new rules for online gamers. Chinese web users will have to register their names before playing games online.
New Chinese online gaming rules
The regulations also require online game companies to self-censor. According to the official China Daily, new online gaming reglementation will apply to all domestic and imported role-playing and social networking games (like Happy Farm on Kaixin001) from August 1.
With the new rules, online users who want to play a game will have register with a valid ID. Game providers will also be banned from offering unsuitable games to minors.
China's online gaming market is booming
China's online games sector is booming thanks to the growth of the country's web community, now the largest in the world. Chinese online population reached 400 million in the beginning of this year, and the number of young Internet addicts was estimated at around 24 million in 2009.
The measures aim to decrease soaring rates of Internet addiction in China, particularly among minors. IT research firm Analysys International predicts that by 2012, online gaming market will nearly triple from 2009 levels to about 73 billion yuan (approximatively 11 billion dollars), with more than 270 million players.
China already regulates the Internet
China filters out any information deemed politically sensitive or harmful. It results in the blockage of webstites such as Facebook, MySpace and Twitter.
This announcement comes after China's government recently defended Internet regulation and stated it would continue to block access to sensitive information on the Internet.
State media reported in May that authorities would also introduce a system requiring web users to provide their real names before posting comments online.



