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In-Depth Report on China’s Internet Cafes Shows Their Importance to China’s Online Games Sector

Niko Partners announces the results of its first report dedicated to analysis of Internet cafes in China, that provides insight into Internet cafe usage, the role of cafes for online games, typical PC hardware specifications, purchasing, and relationships with online operators in 18 cities of varying sizes and geographic locations. Furthermore, information from a survey of 500 gamers reveals important information about their behaviors that companies involved in game development and distribution need to know.

"As video game publishers look to break into and successfully compete in the burgeoning Chinese market, it is critical that they understand underlying consumer behaviors and how Internet cafes are a critical component of China's online game market", said Lisa Cosmas Hanson, managing partner of Niko Partners. "This study takes into account a survey of 507 cafes in 18 cities providing insight to online game operators and publishers, and will help business development executives from both PC hardware and game software companies make sound decisions as they increase their emphasis on China's market."

Chinese gamers in large cities such as Shanghai and Beijing often have home PCs, but still visit cafes for online gaming to socialize and compete with friends. In China's more rural areas and smaller cities, gamers may rely solely on Internet cafes for Internet access and to play online games. China's Internet Cafes Study 2008 is relevant to foreign companies because it elaborates on topics such as:
• The importance of the Internet cafe channel for online game operators, who in 2008 will generate approximately 40% of their $2.5 billion service revenue through it.
• The typical hardware specifications of the roughly 21.9 million PCs that are installed in cafes throughout China.
• The revenue breakdown for this $20 billion Internet cafe industry.
• The regulations governing the estimated 185, 000 Internet cafes nationwide in China, 71,000 of which are unlicensed by the appropriate regulatory authorities.



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