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Software to the sea, games to the sea! Maybe it's another big dividend market

author:Shenzhen rice cook HaiMingge

Recently, many friends in the game industry have come to me to register overseas entities

Briefly talk to them about it, I have found some authoritative industry reports

Discover the future of the gaming industry and the software industry as a whole

"Going to sea" may be able to recreate a number of listed companies

Software to the sea, games to the sea! Maybe it's another big dividend market

What is "Software to Sea"?

Software going overseas refers to the phenomenon that software products developed by Chinese mainland software companies are distributed in overseas software markets (including the markets of Hong Kong, Macao and Taiwan).

And "games", as the vanguard of software going to sea, can largely reflect the vast majority of us who "go to sea with software"

Let me take "game out to sea" as an example to briefly talk about

The history of the game's development

Looking at the entire game going to sea, china's Chinese games can be divided into embryonic period (before 2012), exploration period (2012-2015), two-dimensional sea tide (2015-2018) and industry outbreak period (2018 to date).

Representative games are: budding period - casual games; Groping Period - The War of kings; The Second Dimension Goes out to sea tide - "Yin and Yang Division", "Crash Academy" series of games; Outbreak period - Tencent system (represented by the overseas version of the glory of the king), Miha tour system (represented by the original god), NetEase system (represented by the fifth personality)

Software to the sea, games to the sea! Maybe it's another big dividend market

Game out of the sea industry chain

Major industry chains: game developers---- game publishers--- game channels (or distributors)

Game developers: Plan and develop games going to sea

Publisher: It is to manage the operation of overseas games in overseas markets

Game Channels: Game promotion and download platforms

If you do not have or even lack overseas promotion operation and customer service management experience, many developers choose overseas operators to improve the efficiency of issuance, and some large companies will seek cooperation with advantageous issuers in overseas regions in order to better optimize the allocation of resources. For example, NetEase's "The Fifth Personality", "After Tomorrow", and "Soul Hunting Awakening" chose to be distributed by the experienced Heartbeat Network in South Korea.

Game overseas profitability: mostly product monetization and traffic monetization. Product monetization comes from players paying for game buyouts, or spending on services such as in-app purchase props or recharge, while going overseas games can realize traffic monetization and obtain revenue through in-game display banner ads, screen-cutting ads, and incentive ads.

Software to the sea, games to the sea! Maybe it's another big dividend market

The current status of the game going to sea

Data show that in the first two quarters of 2021, among the top 2,000 mobile game products overseas, Chinese game manufacturers accounted for 23.4% of the total, an increase of 3.6% year-on-year, the market share of American manufacturers was 18.8%, the market share of Japanese manufacturers was 17.6%, and the market share of Korean manufacturers was 7.7%, with a year-on-year change of +0.3%, -3.7% and -0.6%.

Software to the sea, games to the sea! Maybe it's another big dividend market
Software to the sea, games to the sea! Maybe it's another big dividend market

It's not hard to see from the data

The entire Chinese game overseas industry accounts for the largest proportion, the fastest growth, strong competitiveness and other advantages

Back to software out to sea

A speech by Xu Yangyang, a partner of Chuxin Capital, was quoted as an answer

"Relying on China's dividends to create the ultimate software products, we will use China as our base camp to serve global users and achieve considerable commercialization."

First of all, China is leading the world in audio and video, e-commerce, SCRM, AIOT and other fields, and the new generation of enterprise software is integrated with specific scenarios, and there is an opportunity to export cognitive dividends to overseas and have the opportunity to become an internationally competitive product.

China has the world's largest engineer dividend, and has the opportunity to create the ultimate experience product based on the huge number of users and scenarios in China, supplemented by a very competitive price, to promote the domestic user volume, overseas leading commercialization of the two-wheel drive business model.

Different from the "One product for all" operation strategy in Europe and the United States, the Chinese entrepreneurial team pays more attention to localized operations, and provides better product and service experience for global enterprise customers through the development of multilingual versions, localized operations and SaaS charging models.

In recent years, a number of Chinese software companies have verified the existence of this opportunity overseas, such as the listed companies VoiceNet and Tuya Intelligence, which have been listed in recent years, and the unicorn company Kujiale and Xiaoying Technology.

Chu Xin believes that the ultimate products polished by relying on the huge number of users and rich scenes in the Chinese market are expected to be directly migrated to overseas products that match the needs but have stronger payment capabilities.

The new generation of renderer tool D5 Nvidia with initial layout, intelligent design company Onlibox, audio and video service provider Lewei Technology and CAD design tools Yuntu 3D, from the fields of architecture, design, audio and video, all adopt the mode of providing productivity tool software based on China and overseas, and have received positive feedback from many overseas users.

In the future, we believe that more and more tools and software will naturally be internationalized, sail out to sea, and harvest dividends. ”

Editor's Note

Back to the very beginning, I said that it was a friend who asked me to register a foreign subject that I learned something

There are actually a lot of problems in this

Friend said: "The game is good to go to sea with dividends, but the local government will not let you enter the market casually, and it is very unpopular if there is no local subject, or a Chinese manufacturer." ”

The government requires local entities to be on the one hand, and collecting payments is actually on the other hand.

Most games are earned by player recharge, so how to recover the amount of money of a few tens of yuan for each sum?

This is the time when it will be much more convenient if there is a foreign entity of its own

Today's sharing is here, thanks for reading ~