The three major game console giants have released quarterly financial reports, both hardware sales and software content have shown significant growth, driving the enterprise performance up. Can the highlight of the game console last? What is the status of domestic game console market? “China Business Daily” reporter in the recent investigation and interview found that the domestic game console market has significantly increased. Industry insiders pointed out that in recent years, the game market tends to be diversified, and the share of game console has been eroded. In China, the consumption market of game console has not yet entered the mainstream. According to the latest financial report released by Nintendo, in the first quarter of fiscal year 2021 ending June 30, the company’s net sales reached 358.1 billion yen (about US $3.35 billion, based on the exchange rate on August 13, the same below), with a year-on-year increase of 108.1%, and a net profit of 106.4 billion yen, with a year-on-year increase of 541.3%. This is Nintendo’s best performance in recent quarters.
Nintendo’s sales rose sharply, thanks to the selling of the game of animal friends. According to the financial report, the game sold 10.63 million copies, with a total of 22.4 million copies. < / P > < p > in addition to Nintendo, the game business has also become a highlight in the financial reports of Sony and Microsoft in the same period. From April to June is the first financial quarter of Sony’s fiscal year 2020. The company’s overall sales revenue was 1968.9 billion yen, a slight increase of 2% year-on-year. Among them, the game and network service business dominated by Playstation business contributed more than 30%, and the sales revenue was 606.1 billion yen, an increase of 31% year-on-year. Operating profit reached 124 billion yen, compared with 50.2 billion yen in the same period of the previous fiscal year. It is worth mentioning that the number of Playstation plus subscribers reached 45 million. < / P > < p > in Microsoft’s fourth quarter financial report of fiscal year 2020 as of June 30, Xbox game revenue and game service revenue reached $1.3 billion and $1.2 billion respectively, with year-on-year growth of 64% and 65%. These two parts of the revenue increased Microsoft’s personal computer business unit revenue by 14%. < / P > < p > although the contribution of Chinese consumers is not counted in the three financial reports, according to a data report from Niko partners, a market research company, in 2019, the number of game console players in China will reach 11 million, contributing about $997 million in revenue. Niko partners predicts that by 2024, the number of Chinese players may exceed 19.15 million. < / P > < p > the recent hot sales of game machines are also felt by domestic channel operators. The reporter recently visited the “Freeman video game” store in Yinhe SOHO, Dongcheng District, Beijing. It is a “online Red store” with brand authorized sales and aimed at game players. According to a staff member, “affected by the epidemic situation, the stores were closed at the beginning of the year, and now they are mainly sold in Taobao stores online. After the store opened and opened, the game cards of “dynason” were very popular, and some consumers were mainly young people who bought Nintendo switches simply to play the game. There are also many parents in the neighborhood with their children to buy, of course, a part of the consumer group that has increased significantly in recent months is brought about by “dynamic Sen.” < p > < p > industry observers pointed out that since this year, the number and frequency of home ownership have increased sharply, and the “housing economy” such as video, education and games has become increasingly hot. All parties in the game industry are driven by the “inclusive” industry, including the game console market. In terms of the market structure, Sony, Nintendo and Microsoft have firmly occupied the leading position, and the competition from hardware to software content ecology is becoming more and more fierce. In the future, the competition will still be dominated by the three giants. However, in the domestic market, due to the restrictions of policy environment, consumption habits and demand, the market position of game machines has always been wandering in the non core area and failed to occupy the mainstream. < / P > < p > Mr. Zhou, who lives in Daxing District of Beijing, purchased the Bank of China Version of the switch. The equipment is 500 yuan or 600 yuan cheaper than the overseas version, but there is a problem that he can’t connect to the Internet, which means that he mainly uses stand-alone games instead of social functions. < p > < p > with regard to a large number of game console devices such as Japanese version, American version and Hong Kong Version, Mr. Xu Long of Guangdong Yingzun law firm pointed out that the product itself, as a legally produced product, will develop different versions for sale based on the different sales strategies of different countries of the brand. However, due to the difference in price or configuration of different versions, there is such a cross region Domain sales problems, which are common. As for the judgment of whether the equipment is legal, it mainly depends on whether its source is smuggled goods or whether the built-in content of the product violates domestic laws and regulations. < / P > < p > in the domestic market, game machines were once banned for 14 years, and it was not until 2014 that the cultural market of Shanghai pilot free trade zone was opened. At that time, the administrative provisions stipulated that foreign-funded enterprises were allowed to engage in the production and sales of game and entertainment equipment, and the game and entertainment equipment that passed the content examination of the cultural authorities could be sold to the domestic market. By November 2019, the Ministry of culture and tourism of the people’s Republic of China has promulgated the measures for the management of game and entertainment equipment to further clarify the requirements for equipment sales and content access. The purpose of these laws and regulations is to ensure the healthy development of the domestic game industry, regulate the order of the game market, and prevent minors from being harmed by their physical and mental health. < / P > < p > in addition to strict policy supervision, more importantly, the market share of the game console market has been eroded by mobile games in recent years. In short, the popularity of smart phones has led to the explosive growth of mobile games. There are many phenomenal game products, such as “glory of the king”, “peace elite”, “survival of the Jedi” and other games, to a large extent, meet the needs of users for game entertainment anytime and anywhere. At the same time, the emergence of live game platform has further enriched the user’s game experience. More importantly, in terms of market value, mobile games and online games are much higher than those of host games. For example, Tencent’s latest financial report shows that Tencent’s online game revenue in the second quarter was 38.288 billion yuan (about 5.517 billion US dollars), an increase of 40% year-on-year. To know, the number of mobile games, online game industry participants is much larger than the game console. Huang Huping, CEO of ice world, told reporters that at present, most content developers in China are concentrated in the online game and mobile game market, and “can’t see the profit of the host game.”. This is because, compared with the mobile game, online game market, the flow of host games (refers to the turnover) is not high. In addition, it is worth noting that the VR (virtual reality) industry represented by oculus is also rising. For example, last year’s quest, which focuses on the mass consumer market, monopolizes many 3A level game works. The whole ecosystem is designed according to the host game. The future game industry will be more diversified. < / P > < p > in the face of the market being “cannibalized”, Nintendo, Microsoft and Sony are on the one hand strengthening product and service experience, on the other hand, they are expanding to VR / AR, artificial intelligence and other new technology fields. In response to investor questions, Microsoft CEO Satya NADELLA revealed that the new generation of Xbox series X will be released in November this year. The game business is developing well and is expected to attract more than 2 billion game players. Sony has launched Playstation VR devices, 3D space and 3D sound effects to enhance the immersive experience of players. Nintendo and Tencent reached a cooperation last year, hoping to open up the domestic market.