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  • Top 10 Gaming Startups in China leading the Gaming Industry

    Over the years, China’s Gaming Industry has grown exponentially and now houses a few of the best gaming companies in the world. The country gaming industry generated over $32 billion total revenue only in 2020, while E-sports earned more than $20.8 billion. When it comes to PC games, the Chinese gaming companies earn over $8.5 billion.

    China also has the best e-sports players in the world and is among the top in the most significant game development market in the world. China is known to have over 665 million players who also spend more than 278 billion yuan on video games. Because of numerous strict regulations imposed by the Chinese Government, many Chinese gaming companies now want to focus on moving overseas markets.

    China is called the gaming capital of the world as its gaming companies have provided innovative solutions at a high cost to value ratio. China currently has over 778 gaming startups in the country in 2021. The Chinese gaming companies are known to have a skilled workforce that aims in delivering quality, unique and engaging content.

    These are the top ten gaming startups in China. The Chinese online game streaming industry is expected to grow to a height of a CAGR of 9% from 2021 to 2026, which means China has the potential to dominate the market with its gaming startups.

    Tencent Games
    NetEase Games
    Huya Inc
    Hero Entertainment
    Giant Interactive Group
    Cushou TV
    Panda TV
    Zeus Interactive
    Chukong Technologies
    Madhead App
    Frequently Asked Questions

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    The Top Ten Gaming Startups in China are

    Tencent Games

    Company Tencent
    Founded year 1998
    Headquarters Shenzhen (China)
    Funding $12.6 Billion
    Investors Lippo Group, Prosus & Naspers, PCCW, IDG Capital

    Tencent Logo
    Tencent Logo

    Tencent Holdings is one of the top gaming companies that was founded in 1998, with its headquarters based in Shenzhen, China. Besides gaming, Tencent also has its foothold in the sectors of entertainment, AI, advanced technology, and other internet-related services and products. Tencent Games has the largest online gaming community in China, it also is the largest digital entertainment platform in the world.

    The company reportedly generated over $14.86 billion total revenue in 2019 revenue, making it the world’s largest games publisher the same year. Its most well-known games are PUBG Mobile and Honor of Kings. Both PUBG Mobile and Honor of Kings are globally renowned free-to-play multiplayer action games.

    NetEase Games

    Company NetEase
    Founded Year 1997
    Headquarters Hangzhou (China)
    Funding –
    Investors SoftBank Group

    NetEase Logo
    NetEase Logo

    NetEase is another top IT company in China that operates and develops online PC and mobile games. The company was founded by William Ding in 1997 with headquarters based in Hangzhou, China. NetEase is now a global gaming company as it has collaborated with Blizzard Entertainment, Mojang AB and other leading global game developers.

    Besides gaming, the company has also ventured into the industries of advertising, email and e-commerce services in China. The top games the NetEase has developed are Westward Journey, Tianxia III, Nostos, Onmyoji, among others.

    Besides that, the company has also operated the Chinese versions of Blizzard Entertainment games like World of Warcraft, Overwatch, etc. NetEase is now ranked second place among the top mobile gaming companies in terms of its global revenue and has high ratings on both Apple and Google app stores.

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    Huya Inc

    Company Huya Inc
    Founded year 2016
    Headquarters Guangzhou (China)
    Funding $1.1 billion
    Investors Tencent, Ping An, Engage Capital, David Li, 5Y Capital, Rongjie Dong and Gaorong Capital

    Huya Logo
    Huya Logo

    Huya is a live game broadcasting platform that was founded in 2014 with its headquarters based in Guangzhou, China. The company provides a broadcasting software platform that allows its users to stream and take videos while playing the game.

    It helps connects broadcasters to their audience and is also the provider for a wide variety of media ranging from talent shows, cooking, sports, animes, online movies, etc. Huya is also the official broadcaster of top e-sports competitions.

    Hero Entertainment

    Company Hero Entertainment
    Founded year 2015
    Headquarters Beijing (China)
    Funding $539 million
    Investors Huayi Brothers Media Group, Prometheus Capital, ZhenFund, etc

    Hero entertainment also known as Yxgyu.com is a mobile game developer that was founded in 2015. The company has its headquarters based in Beijing, China. Hero entertainment is the developer of the Battlefield series, which is a MMA fight show. Besides game development that company is also into combat sports and mixed martial arts promotions in their country.

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    Giant Interactive Group

    Company Giant Interactive Group
    Founded year 2004
    Headquarters Shanghai (China)
    Funding $44.3 million
    Investors SIG China

    Giant Interactive Group Logo
    Giant Interactive Group Logo

    Giant Interactive Group is one of the best Chinese online game developers and operators of many well-known multiplayer online games. The company was founded in 2004 and has its headquarters based in Shanghai, China. Giant Interactive Group is currently one of the leading online game developers and operators in terms of revenue.

    Their game ZT online is the most popular game in China in 2006, after the success of that game the company came up with Road Bin and Street Basket for android and iOS. Besides that, it has also come up with Jianghu and Xian Xia World both of which are MMORPG games. The company was also named“2016 Top Ten Most Anticipated Versatile Game Honor” by Road Crate.

    Cushou TV

    Company Cushou TV
    Founded year 2011
    Headquarters Hangzhou (China)
    Funding $117 million
    Investors Google, GGV Capital, Shunwei Capital, AlphaX Partners, iQiyi

    Cushou TV is another leading mobile video live streaming platform with its headquarters in Hangzhou, China. Besides being an eSports video streaming platform, the company has also developed popular games like Counter-Strike and League of Legends that are well known around the world.

    The company is now planning to improve its user network and expand its live video host’s network. Cushou TV has is well known for its live video-streaming platform that provides interaction sites and games, which enables E- gamers to stream their mobile phone game activities live.

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    Panda TV

    Company Panda TV
    Founded year 2015
    Headquarters Shanghai (China)
    Funding $145 million
    Investors Zhen Fund, Chen Hai Capital, Hanfor, Lighthouse Capital

    Panda Tv Logo
    Panda Tv Logo

    Panda TV is a Shanghai-based E-sports live streaming platform that specializes in broadcasting e-sports events live. The company allows its users to stream live e-sports games, events, it also streams video and news content related to esports.

    It main competitors are Douyu TV and Twitch. However, in 2019, Panda TV announced that it will end its services because it had failed to raise funds in order to keep the operations going.

    Zeus Interactive

    Company Zeus Interactive
    Founded year 2011
    Headquarters Beijing (China)
    Funding $132 million
    Investors Beijing Enlight Media, Legend Capital, Legend Star, etc

    Zeus Interactive Logo
    Zeus Interactive Logo

    Zeus Interactive is a leading game and web developer with headquarters based in Beijing, China. The company was started in 2011 and focuses on developing online mobile games.

    Zeus Interactive so far has over 15 plus games and specializes in role-playing games for both mobile and PC. The company has raised more than $132 million in funding. Currently Zeus Interactive is planning to turn its games into live-action movies.

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    Chukong Technologies

    Company Chukong Technologies
    Founded year 2011
    Headquarters Beijing (China)
    Funding $123 million
    Investors Qualcomm Ventures, GGV Capital, Steamboat Ventures, New Horizon Capital, Creaturk, Sequoia Capital China

    Chukong Technologies Logo
    Chukong Technologies Logo

    Chukong Technologies is a well-known mobile entertainment platform with its headquarters based in Beijing, China. Besides developing mobile games, the company also has its foothold in publishing and game engine development.

    The company has more than 60 published titles and its most successful game has been Fishing Joy which was launched in 2011, this game gained over 12 million downloads within a year of its launch.

    Madhead App

    Company Madheads
    Founded year 2013
    Headquarters Hong Kong (China)
    Funding $70 million
    Investors Forgame

    Madhead App is a popular game developer with its headquarters based in Hong Kong. The company is known for its Role-playing games, its most well-known games are Tower of Saviors in need and Chronos Entryway. Their games like Tower of Saviors had over 19,00,000 downloads as of 2016.

    The company’s games are popular in Taiwan, Hong Kong, Malaysia and other South Asian countries. It game Tower of Saviors so far has over global downloads of over 23 million. Madheads is known for providing the best user experience for all mobile gamers.

    Frequently Asked Questions

    What are the top gaming startups in China?

    The top gaming startups in China are Hero Entertainment, Huya Inc, Madhead App, Chukong Technologies, Zeus Interactive, Cushou TV, Panda TV, Giant Interactive Group, Tencent and Netease.

    How many gaming startups are in China?

    China currently has over 778 gaming startups in the country in 2021.

    How much revenue does China generate from Gaming companies?

    The country’s gaming industry generated over $32 billion total revenue only in 2020, while E-sports earned more than $20.8 billion.

  • Top 8 Leading Fintech Startups in China

    Fintech is one of the leading industries in the world because of many emerging unicorns in the sector. The fintech industry has become a game-changer for banking services industries as it has been tremendously impacted by Technology enterprises. Most Fintech startups offer financial services such as mobile payment, digital banking, insurance, crowdfunding, wealth management, or recently even digital currencies like cryptocurrency.

    Fintech companies nowadays have to rely on advanced technology like datasets, Internet of Things (IoT) artificial intelligence (AI), cloud computing, or even blockchain in order to provide their services. Fintech currently has over 79 Unicorns globally making it the largest sector with the most number of Unicorns, while there are more upcoming fintech startups that will be added to the list.

    The global Fintech market was said to be valued at $111 billion, while it is now expected to grow to more than $158 billion by 2023. China is often considered one of the leading countries in the sector of financial technology. The country so far has over 2,160 Fintech startups out of which over 18 are already unicorns. According to some studies over half of the world’s digital payments were made in the country using apps like Alipay and WeChat in 2017.

    In 2018, China received over $25.5 billion investments into its fintech industry making it the leader in this sector. Even to this date china continues to be the leader in the industry because it completed over 600 plus deals in 2018 alone, the country also has the highest fintech adoption rate of 69% in the world.

    China went through a Fintech boom because many startups wanted to fill the gap of traditional banking which lacked in the country by introducing fintech services that fulfilled the needs of ordinary people and SMEs. Because of the growth of the fraudulent practices in the Chinese sector in China, the Government has come up with rules and regulations including 65 national financial standards and 252 financial industry standards to control them.

    The fintech startups in China are targeting the middle class in the sectors of wealth management, different types of insurance and private banking as the services like mobile payment is already popular in the country.

    Tencent
    Ant Financial
    Lufax
    Bitmain
    Dianrong
    Ping An
    JD Digits (Formerly JD Finance)
    Renrenxing Technology
    Frequently Asked Questions

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    Here’s a list of top fintech startups in China.

    Tencent

    Company Tencent
    Founded year 1998
    Headquarters Shenzhen (China)
    Funding $12.6 Billion
    Investors Lippo Group, Prosus & Naspers, PCCW, IDG Capital

    Tencent Logo
    Tencent Logo

    Tencent is considered to be one of the largest gaming companies in the world, but also has a foothold in the Fintech industry. Over the years the company has come up with top-notch payment services through WeChat, which was considered to be the first online-only bank offering wealth management and other financial services in China. Through WeChat Pay the company has made many strategic investments and third-party marketplaces, increasing its valuation to $21 billion in 2018.

    The company was initially founded by Ma Huateng, Tony Zhang, Xu Chenye, Chen Yidan and Zeng Liqing in 1998, with its headquarters based in Shenzhen, China. The main competitor to Tencent in the fintech sector is Alipay which is under Alibaba. By the end of 2019, WeChat had is estimated 800 million users and 50 million merchants on the platform every month. This is why Tencent is one of the most financially valuable companies in the world.

    Ant Financial

    Company Ant Financial
    Founded year 2014
    Headquarters Hangzhou (China)
    Funding $22 Billion
    Investors General Atlantic, Meros Equity Global Management, Warburg Pincus, The Carayle Group, Credit Suisse, Temasek Holdings, Sequoia Capital, Khazanah Nasional, Silver Lake

    Ant Financial Logo
    Ant Financial Logo

    Ant Financial is one of the top fintech startups in China that was founded in 2014 with its headquarters in Hangzhou, China. Ant Financial provides various digital payment services for both customers and businesses.

    Ant Financial is known for its Alipay mobile wallets which offer financial services like transferring money to bank accounts, bill payments, online or offline mobile bill payments, among others. The brands under Ant Financial are Alipay, Ant Fortune, Yu’e Bao, Zhima Credit, MYbank and Ant Financial Cloud.

    Alipay also allows SMEs to accept online payments from customers through cards, corporate credit solutions and Bank transfers. Ant Financial Group is a subsidiary of the Alibaba Group which is a Chinese eCommerce giant and is also said to be the world’s most valuable Unicorn Company.

    As of 2018, the company has over 87 million users across the world along with JV partners, currently, it has over 1.2 billion users worldwide. Besides its mobile wallet services, Ant Financial is also a leading fundraising company in the country.

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    Lufax

    Company Lufax
    Founded year 2011
    Headquarters Shanghai (China)
    Funding –
    Investors HarbourVest Partners

    Lufax Logo
    Lufax Logo

    Lufax is a popular online wealth management and P2P lending platform for personal loans. The company provides insurance services to both individuals and institutions with advanced technology like AI and Cloud. Lufax was founded by 2011 in Shanghai, China and was originally set up by Ping An as an incubation project.

    It currently is the second-largest P2P lender in the country and is planning to branch out its business gradually to work with funds and insurance companies. In 2018, the company also expanded its services to Singapore, the same year it also came out with a new blockchain solution that identifies users and tracks transactions, especially between borrowers and lenders. Lufax is said to be the best Internet financing industry in China as it has accelerated the marketing process.

    Bitmain

    Company Bitmain
    Founded year 2013
    Headquarters Beijing (China)
    Funding $764.7 million
    Investors Temasek Holdings, Crimson Ventures, Noris Capital, Newegg, Coatue, Sequoia Capital China, CAS Investment Management, Jumbo Sheen Group, HuangPu River Capital

    Bitmain Logo
    Bitmain Logo

    Bitcoin is a well-known Edtech startup that provides hardware-based mining solutions for Cryptocurrencies. The company was started by Micree Zhan, Jihan Wu in 2013 with its headquarters based in Beijing, China. Bitmain is known for providing hardware-based mining (ASIC) solutions for bitcoin mining. By 2018, the company became the largest designer of ASIC chips for bitcoin mining.

    Besides ASIC chips the company also makes servers, simple routers, AI applications, mining tools and other services & products for blockchain. Bitmain also operates BTC.com and Antpool which became the biggest pool for bitcoin. Bitcoin introduced Bitmain Technology in 2013 that successfully engaged with the field of AI and increased power consumption speed.

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    Dianrong

    Company Dianrong
    Founded year 2013
    Headquarters Shanghai (China)
    Funding $549 million
    Investors Simon Investment Managers, EG Capital Advisors, Affirma Capital, ORIX Asia Capital, CITIC Securities, China Minsheng Investment Group, GIC

    Dianrong Logo
    Dianrong Logo

    Dianrong is a leading peer to peer platform for personal loans. The company was founded in 2012 with its headquarters in Shanghai, China. Dianrong provides products and service offerings like credit ratings, investment products, marketplace lending solutions risk management and operation tools.

    In 2018, the company created a supply chain finance solution designed especially for finance and business. The company provides a well planned and secure infrastructure for industry data and insights.

    Ping An

    Company Ping An
    Founded year 1988
    Headquarters Shenzhen (China)
    Funding $4.8 billion
    Investors –

    Ping An Logo
    Ping An Logo

    Ping An Technology is the main subsidiary of Ping An Group a multinational conglomerate. The company is in charge of the financial sector that provides services like insurance, banking, investment, and numerous other internet businesses. The company went on to create Lufax and Oneconnect which are both well-known fintech companies in China.

    The company was founded in 2008 and initially provided IT services to firms within the Ping An Insurance Group. Ping An also allows its customers to use its P2P lending services over AI technology. Ping An was the first insurance company to be selected on the index and is currently the World’s top global insurance brand in 2020.

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    JD Digits (Formerly JD Finance)

    Company JD Digits
    Founded year 1998
    Headquarters Beijing (China)
    Funding CN¥ 34 billion
    Investors CICC, COFCO, APOFCO, Sequoia Capital China, China Creation Ventures, China Taiping Insurance, Intonation Ventures, Harvest Global Investments

    JD Finance is one of the leading Chinese fintech companies that was started by the JD Group in 2013. JD Group is one of the biggest B2C online retailers in China. The company has its headquarters in Beijing, China and aims to become the most trustworthy internet investment and funding platform. The company provides its customers with services for investment and financial management, which are easy, high yielding and safe.

    The company uses advanced technology big data, AI, cloud computing, blockchain and IoT for providing its financial services. JD Finance is estimated to be $20 billion as it raised over $1.9 billion in 2018. The company comprises 10 business divisions that cover different types of covering corporate and consumer finance needs.

    Renrenxing Technology

    Company Renrenxing Technology
    Founded year 2014
    Headquarters Beijing (China)
    Funding CN¥ 4.5 billion

    Renrenxing Technology is another popular Chinese Edtech startup that is known for developing applications for borrowing and lending money. The company started Jiedaibao in 2015 which has its headquarters in Beijing, China. Jiedaibao is a leader in providing peer to peer services for lending and borrowing money, besides that it also offers services like matching, registration, collection and other services for small loans for customers and SMEs.

    The company is now known to be the country’s top tech unicorn company as its valuation is estimated to be over $10 billion. Through Jiedaibao, Renrenxing Technology has come up with an app that helps in deciding interest rates independently and based on that it generates an electronic contract that is legal. This enables their customers to get personal loans at a fixed price and get reminded of the repayment or expiry of the contract.

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    Frequently Asked Questions

    What are the top Fintech startups in China?

    The top Fintech startups in China are Renrenxing Technology, JD Finance, Ping An, Dianrong, Bitmain, Lufax, Ant Financial and Tencent.

    How many fintech startups does China have?

    The country so far has over 2,160 Fintech startups out of which over 18 are already unicorns.

    What is the valuation of the global fintech market?

    The global Fintech market was said to be valued at $111 billion, while it is now expected to grow to more than $158 billion by 2023.

  • What is the Common Prosperity Bill being imposed in China? | How will it impact China?

    Chinese President Xi Jinping has recently come out and asked China to help him achieve the goal of Common Prosperity, a bill that can help narrow the growing wealth gap and focus on social value. Common Prosperity was first mentioned by Mao Zedong the former president of the People’s Republic of China in the 1950s but has come to existence again with the current President Xi Jinping.

    Currently, people of the country are unclear on how this law may be implemented, but according to the speculations, the big tech companies of China are now under pressure from Beijing to donate towards the initiative. According to Xi Jinping, Common Prosperity is not only an Economic goal that the country has to reach, but is also the core of the Chinese Communist party’s governing foundation.

    The Growing Wealth Gap in China
    A Brief about the Common Prosperity Bill
    How will the Common Prosperity bill be achieved?
    How will the Common Prosperity bill Impact China?
    Frequently Asked Questions

    The Growing Wealth Gap in China

    According to few studies, 20% of the China rich population earn ten times more than 20% of the poor population. This is a wider wealth gap than compared to countries like America, Germany and France.

    The statistics of the country say that over 600 million people (which account for over half of the country population) live on an annual income of 12,000 yuan or $1,856 US dollars. While the rich sector of the country has only increased over the past few years, China has a total number of 1,058 billionaires as of 2021.

    A Brief about the Common Prosperity Bill

    As mentioned above Common Prosperity was initially coined by mentioned by Mao Zedong the former president of the People Republic of China in the 1950s. The law was also mentioned again by Deng Xiapong who was the former leader of the People Republic of China, the man who played a vital role in modernizing the Chinese economy after the Cultural Revolution.

    Deng Xiapong version of Common Prosperity is different from president Xi Jinping idea because it centered on allowing certain people and regions to get rich first in order to speed up economic growth in the country.

    This has long been the goal of the current President Xi Jinping, as he had mentioned the goal in his 2017 speech at the party congress to mark the start of his second term.

    According to him, Common Prosperity aims in closing the wealth gap in the country and proving the legitimacy of Communist Party rule. Common Prosperity is often misunderstood as egalitarianism, but it does mean bringing down the rich in order to help the poor.

    According to many Chinese analysts, the goal of common Prosperity should be about helping those who need it the most. This bill will however target the Successful MNCs of the country, Tech and Gaming companies, which has alarmed the investors.

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    How will the Common Prosperity bill be achieved?

    There are possibilities the law will include policies ranging from Tax evasions and limits on how many hours tech companies employees can work among others. The taxes are said to be used to expand the proportion of the Middle class and boost the income of the poor in the country. The goal will also help adjust excessive income of the rich and possibly ban illegal ways of income.

    The Chinese Government is now encouraging the country’s top MNCs and rich individuals to contribute to society through the means of charity and donations. Recently Alibaba announced that it will be investing over $15.5 billion to support the initiative of Common Prosperity. Other big tech companies like Tencent have also pledged over 100 billion Yuan or $15 billion towards numerous initiatives.

    While founders of big companies like Pinduoduo, Meituan and Xiaomi have all promised billions of dollars toward social causes in order to support the goal of Common prosperity. These companies are said to invest money into the sectors of innovation of new technology, development of the country’s economy, creating high-quality jobs and supporting vulnerable groups.

    Besides that, the Chinese Government has is already implementing laws for restricting gaming time for minors below the age of 18 years old to only three hours a week.

    The Chinese government is also planning to ban tutoring companies from making a profit by teaching their students the syllabus on nights and even weekends. The Government also announced a reform plan to reduce healthcare costs, especially in public hospitals.

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    How will the Common Prosperity bill Impact China?

    Many state agencies and tech companies have started to announce that they will invest huge amounts of money to help reach this goal, by doing this they are signaling their allegiance to this Communist Party and its upcoming schemes. If this bill is put in action it can help make housing more affordable especially in the main cities of China.

    There are speculations that the bill might lead to the nationalization of private companies. The bill also will help the middle class and poorer sectors of Chinese populations in accessing education and healthcare. It also encourages the richer sector of the Chinese population to be more philanthropic and donate towards the growth of society.

    The income of the rural areas can increase and they will also be able to avail public services easily. With this bill, China is aiming to increase domestic demand and self-reliance which has been propelled by the ongoing tensions between China and America.

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    Frequently Asked Questions

    What is the Common Prosperity Bill?

    Chinese President Xi Jinping has recently come out and asked China to help him achieve the goal of Common Prosperity, a bill that can help narrow the growing wealth gap and focus on social value.

    Who first coined the term Common Prosperity?

    Common Prosperity was first mentioned by Mao Zedong the former president of the People Republic of China in the 1950s.

    Why is the Common Prosperity Bill being implemented?

    The Common Prosperity Bill is being implemented in order to reduce the wealth gap in China’s population and help the country’s economy increase.

    How many billionaires does China have?

    China has a total number of 1,058 billionaires as of 2021.

  • Why is China limiting gaming? | How will it impact Gaming Startups?

    On August 31st 2021, China’s National Press and Publication Administration have released a statement regarding the restrictions on online gaming in order to reduce gaming addiction among minors. The video game companies will now have to restrict gaming time for teenagers below the age of 18 years old.

    The minor will not be allowed to play only from 8 pm to 9 pm on Friday and at weekends like Saturday and Sunday. This move was taken by the Chinese Government in order to combat the gaming addiction that is rising among Chinese minors. The statement also urged parents and schools to step up their supervision as children could continue playing through adult’s accounts.

    The new restrictions imposed by the Chinese Government
    The Gaming addiction in China
    What do teenagers think of the new gaming restrictions?
    Impact of these restrictions on Gaming Startups
    Frequently Asked Questions

    The new restrictions imposed by the Chinese Government

    Besides adding restrictions on forbidding teenagers under 18 years to only 3 hours of playing every week, the gaming companies must also ensure that the verifications for the apps are strict.

    The gaming apps should also be connected to an anti-addiction system that will be set up by the NPPA. This system is a strict ID verifications system that lets a person have only one account and only through their real name. The punishments for going against these restrictions are that the gaming companies will have to pay huge fines and penalties.

    This is not the first time the Chinese government has imposed restrictions as in 2019, the government passed laws to limit minors to play games for only one and a half hours on weekdays and three hours on weekends, with no gaming from the timings of 10 pm to 8 am. There was another limit on how much minors can spend on in-app game purchases, the maximum amount that could be spent depending on age was ranged from $28 to $57.

    Earlier in 2017, the major gaming company Tencent Holdings also made restrictions for limiting the time minors spent on playing their game Honor of Kings, after many parents complained about their kids getting addicted to the game. Tencent also came out with a facial recognition feature that helped parents keep vigilance over their children especially at night.

    The Gaming addiction in China

    China is known to be the world largest market for online gaming, the top gaming companies are from China. This has led to China youth becoming highly addicted to the gaming culture. The situation in China has worsened as teenagers below 18 years are getting treated for their gaming disorders in clinics. Besides Gaming addiction, China also reported that its rates of nearsightedness have increased considerably in 2018.

    According to many studies over 62.5% of Chinese teenagers play online games often, while 13.2% of teenagers play online games for more than two hours every day.

    China also has had growth rates of Myopia for the past two or three years. According to the newspaper called People Daily, the government had to be ruthless with restrictions because it wanted to impair normal study life and improve the physical and mental health of the teenagers.

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    What do teenagers think of the new gaming restrictions?

    Teenagers over the country are enraged and are not happy with the new restrictions. Many teenagers came to social media to showcase their outrage with the new restrictions.

    One comment said, “This group of grandfathers and uncles who make these rules and regulations, have you ever played games? Do you understand that the best age for e-sports players is in their teens?”

    Some teens think that it is a useless restriction as many kids can use fake details or and national identification numbers when signing into games by using the login details of adult family members.

    A 17-year-old gamer added that this wasn’t a family education issue, not a gaming issue. However, many parents are heartened by the new rules saying that this will help reduce their children’s addiction towards gaming.

    Revenues generated by online gaming in China
    Revenues generated by online gaming in China

    Impact of these restrictions on Gaming Startups

    All the gaming companies will now have to have a strict ID verification system, which means the users can only have one account and only through their real name. The regulators are installed in order to keep a watch on whether or not gaming companies comply with local regulations.

    According to many analysts, the restrictions will not have much financial impact on the Gaming Industry now as the children do not provide much revenue for gaming companies, but the implications for the long-term growth of the gaming industry can be worse. Another analyst also added that these restrictions have the possibility to destroy the entire habit-forming nature of playing games at an early age, which can be detrimental to the gaming industry.

    What the industry is scared of is if the Chinese government stops approving new games as it had done in 2018, where it had suspended game approval of new video game titles for a duration of nine months. In addition to that, the new restrictions do not punish the individuals for infractions but the gaming companies.

    But other investors are not concerned about the restrictions and have continued buying Chinas major gaming companies. The top Gaming Companies like NetEase, Krafton Inc, Nexon and Koei Tecmo, have already seen their stocks falling from over 3.45 to 4.8%.

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    Frequently Asked Questions

    What are the top Gaming companies in China?

    The top Gaming companies in China are Tencent, NetEase, Nexon and Koei Tecmo, etc.

    What are the new gaming restrictions in China?

    The video game companies will now have to restrict gaming time for teenagers below the age of 18 years old, so they can now only play for three hours a day.

    Will the new restrictions impact the Gaming industry in China?

    According to many analyst, this will not impact the gaming industry currently but the implications for the long-term growth of the gaming industry can be worse.

  • Cannibalization- Why Do Brands Cannibalize Their Existing Products (With Examples)

    Every Business has faced this situation, where there’s depletion in the company’s sales turnover as a new product has been introduced, repercussions affecting the sale of old products in the similar product line.

    In other simple words, generally, Cannibalization refers to eating one species, where the devourer belongs to the same species. Just like that, in the business field, the instigation of modern products is coupling the demand and supply of former products.

    Obviously, people purchase the new launch and totally overlook the old product considering it a banal version of a similar product line, moreover this is prevalent in business.

    For instance, Apple constantly releases a series of iOS to its customers, when the company introduced iPhone 12 Pro, people were enthralled to acquire it and ultimately shut one’s eyes to its previous version-iPhone 12. Thus; Cannibalization engenders no vicissitudes in the company’s sales turnover regarding existing products but gradually accelerates sales growth for the new product.

    What is Cannibalization?
    Effects of Cannibalization
    Why is there a need for Cannibalization in Brands? How they overcome Cannibalization?
    Five examples to state that Cannibalization works for existing products:
    FAQ

    What is Cannibalization?

    Numerous corporations practice Cannibalism in Brands, by discounting existing products to compete with their recent products in the market. As a result, this will bring an augment profit on both existing and new products of the company. Besides, Cannibalization is nothing but a competition between exciting and fresh products of the same brand within the company.

    Effects of Cannibalization

    Just like Newton’s third law: for every action, there is always an equal and opposite reaction. So, when the incorporation did anything, then it would definitely influence the incorporation in terms of sales or production.

    If the company inaugurates a fresh product, say McDonald’s comes up with BTS meals, no wonder the BTS armies are everywhere and BTS meal is hyping up in recent times, albeit the existing food products like Big Mac or McMuffin are receiving derivative fond as customers prefer BTS meal to any other foods in McDonald.

    Therefore; no one holds any reprehensible for the loss of the company’s market share, but itself the company by inaugurating new products as one of the newest versions of its old products.

    Why is there a need for Cannibalization in Brands? How they overcome Cannibalization?

    Cannibalization plays a crucial part in brands; where existing products are overlooked because of the newest product introduction. This will accelerate the demand for new products and decrease the sales of former products of its similar product line.

    Businesses cannibalise their existing or outdated products by employing two ways to meet the same demand of their new product:

    Discount

    Company plans to touts existing products due to cannibalization, by providing discounts on such products in order to compete with the same demand for fresh products.

    For instance; Samsung has launched its new version Samsung Galaxy F22 in July 2021, which overruled its preceding product Samsung Galaxy F12 which came to the market in April 2021.

    What is the company planning to do, provided the former Samsung Galaxy F12 sales slump due to the demand for Samsung Galaxy F22 inflates?.

    Factually, it is apparently evident that people would buy stuff when it is provided at a discount rate. So, the company vents former products at a discount price, where people fall for Samsung Galaxy F12 rather than paying a higher price for its newer version.

    E-commerce

    This pandemic became a beneficiary to e-commerce, where everything is supplied through Amazon, Flipkart or Myntra etc. E-commerce is the best way to captivate customers by generating many offers such as festival offers, Today’s Deals or deal of the day etc. For instance, Amazon recently applied for 26th-27th July Amazon prime Day India by selling products at low prices.

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    Five examples to state that Cannibalization works for existing products

    Cannibalization for existing products can be seen in every company when a new product is launched ranging from low-cost products like school supplies to high-end products like vehicles. The cannibalization of existing products can be proved through these examples.

    iPhones

    Apple introduced iPhones which cannibalized iPods
    Apple introduced iPhones which cannibalized iPods

    Steve Jobs, the founder of Apple in his biography has quoted saying that ”If you don’t cannibalize yourself, someone else will”. And likewise, Apple itself cannibalizes its products.

    The iPhone first model was launched in June 2007. During this period Apple was coveted for its iPods and sales were at a high rate but Apple came out with iPhones that practically had the music feature along with phone services with internet connectivity and media support.

    This led to consumers straying towards iPhones as they were a better substitute for iPods. This product like in the case of iPhones is an example of Self Cannibalization.

    Coke-Zero

    Coke Zero Cannibalized Coke
    Coke Zero Cannibalized Coke

    Coca-Cola, famous for its product Coke and Diet Coke, chipped away at its sales by introducing Coke-Zero targeting the male population that worried about their sugar intake in 2006 in the UK while compensating their total revenue.

    Coca-Cola has also cannibalized itself by introducing Minute Maid, Fanta, etc. and removing coke and its variants as the essential face of the company.

    P&G’s Tide Detergent

    Tide Detergent was introduced to cannibalize P&G's Ivory Soap
    Tide Detergent was introduced to cannibalize P&G’s Ivory Soap

    Procter & Gamble was mainly known as a manufacturer of soap and was known for its Ivory Soap which had drawbacks of its own like dirt wasn’t removed when used with hard water.

    So even with risking cannibalization of their Ivory Soap, the company went ahead and introduced Tide Detergent in 1946 which was the first synthetic detergent that could deep-clean clothing as P&G didn’t want to be cannibalized out of the soap producer industry.

    Maruti Suzuki Alto

    Maruti launched Alto which cannibalized Maruti 800
    Maruti launched Alto which cannibalized Maruti 800

    Maruti Suzuki Alto manufactured by Maruti Suzuki was introduced in 2000. It was the Indian built version of the fifth-generation Suzuki Alto. In 2006, it was India’s largest selling car and by 2008 it had crossed 1 million in terms of production. But this increase in sales was only achieved by eating away the sales of the famous Maruti Suzuki 800. This was done with the help of price cuts and an ad campaign that lured many.

    WeChat

    WeChat was introduced to cannibalize QQ
    WeChat was introduced to cannibalize QQ

    China’s Tencent famously known as the world’s largest gaming company and the most-used internet portal used QQ an online instant message service during the period when desktop computers were the hype.

    QQ failed to meet the standards with the development of smartphones and electronic devices. Therefore Tencent ordered a group of engineers to develop a messaging platform that would cannibalize QQ. Thus, WeChat was developed and released in January 2011.

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    Conclusion

    When human beings, in general, see something better, they essentially want it and feel inadequate with the thing they already possess and an urge to be updated with the upgraded version begins to fester. This is exactly what leads to the cannibalization of products.

    The overlooking of existing products for a new one. If this phenomenon doesn’t work, there wouldn’t be customers for a newly launched product be it smartphones or vehicles.

    Also known as corporate cannibalization of market cannibalization, this phenomenon is also the doom for a company as this nips away the sale of the previously introduced product. Thus proving this phenomenon to be double-edged.

    FAQ

    What is the example of brand cannibalization?

    Coke Zero was introduced by Coca-Cola which chipped away the sales of Coke is one of the famous example of brand cannibalization.

    What is Cannibalization?

    Cannibalization is nothing but a competition between exciting and fresh products of the same brand within the company.

    Why do brands cannibalize their existing products?

    Brands usually cannibalize their existing products to accelerate the demand for new products and decrease the sales of former products of its similar product line.