CMGE Attends GDC to Gain In-Depth Understanding of Chinese Mobile Games Market

SHENZHEN, China, March 21, 2014 — (PRNewswire) — The Game Developers Conference (GDC), the annual game industry event of 2014, was held from the 19th to the 21st of March in San Francisco, with over 23,000 programmers, artists, producers and game development professionals from all corners of the globe attending. Ying Shuling, President of China Mobile Games Entertainment Group Limited ("CMGE"; NASDAQ: CMGE) led a delegation of attendees and showcased independent IP mobile game masterpieces "Sword of Soul: Creation War" and "Sword of Soul: Final Battle".

In 2014, the market capital of CMGE surpassed US$1 billion. According to a report recently released by Analysys International, the CMGE ranked the first by occupying 17.9% of the Chinese mobile game all-platform publisher market in 2013.

2014 industry faces reshuffle where only strong expected to survive
There were over 2,000 games available in the Chinese mobile game market in 2013, but only 40 or 50 games can be said to have been successful. In 2014, another 4 to 5,000 games will emerge on the same market. In addition, client game and webpage game companies with ample capital resources are shifting to the mobile game sector, intensifying the competition in an already highly competitive sector. If 2013 was cited as the breakout year for mobile games, then 2014 is destined to be the year of the reshuffle.

Ying, characterized the state of the market when he said, "The rapid development of the market will be accompanied by suddenly intensified market competition." The Chinese mobile game market reached 11.2 billion yuan in value with more than 300 million mobile gamers in 2013. Market value is expected to reach 25 billion yuan in 2014 and up to somewhere in the range of 40 to 50 billion yuan in 2015. In the context of the overall industry reshuffle, the channel centralization trend will become more apparent, and resources will become focused on a limited dozen major channels.

Quality issuers bring opportunities to small and medium-sized CPs
With the industry reshuffle, the mobile game CPs, especially the small and medium-sized players, are facing increasing pressure to survive, and cooperation with distributors has become the preferred option.

"During the busiest time, I have to review nearly 200 mobile game products every day. There is too much information and I don't even have time to sleep," Ying added. The rise of the publishers is inevitable. Due to the large number of mobile game products, limited access to resources and in the face of the packaging and promotion demands of a large number of new products, the publishers have no choice but to move their focus to the packaging and promotion of high-quality games. As a result, including CMGE, game publishers are quickly becoming an important industry link of the mobile game market, and an important driving force in the development of that market.

As an illustration, Chengdu Crimoon Technology Co., Ltd, the developer for "Warriors of  Fate - Enhanced Edition" with monthly revenue over ten million yuan, was a small player with just a little over a dozen staff before boosting by CMGE. Now the firm is valued at over 600 million yuan. So far, nine CMGE products generate monthly income exceeding ten million yuan.

High quality IP adoption by mobile games
For client, web and mobile games, intellectual property rights have become the hottest topic across the industry. Manufacturers continually try to maximize their influence in the market by every which way, including acquisitions, partnerships and homegrown creation of new products. The year 2014 is looking to be the year of IP for the domestic mobile game industry with Jin Yong martial arts, Western literature, classic stand-alone, anime copyright, movie copyright and other highly coveted IP groups becoming the objects of competition for manufacturers.

Movie IPs are among the most coveted and coincide closely with the target audience of mobile games. IPs on the market have been acquired for films, such as FrozenDaddy was a Thief, and Journey to the West: Conquering the Demons and other films and have been integrated into mobile games, in addition to the overseas blockbusters that have been rolled out in China.

In addition to the movie IPs, animation, novels, television programs and other IPs have also attracted attention from the market. It goes without saying that preferences for IPs vary. CMGE has initiated a new strategy in terms of how it deals with the film, television, animation and independent IP sector.

About GDC:
GDC is the abbreviation of Game Developers Conference.
GDC is the largest annual gathering of game developers, with tens of thousands of game developers attending the event each year. Conference awards include Best Game Award, Best Original Music Award, Best Character Design Award, Best Game Design Award, Best Game Design Award, and Best Script Writing Award, among others.

About CMGE:
CMGE is the world's leading mobile game developer and publisher of mobile games, focused on the development and release of mobile games. CMGE was listed on NASDAQ under the ticker symbol "CMGE" on September 25, 2012 and is China's first mobile game company on NASDAQ Capital Market.

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