Russian video game developers may increase supply quotas under accelerated licensing scheme in China
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The Russian authorities are discussing with the Chinese a scheme by which domestic game developers will be able to quickly enter the Chinese market. According to Kommersant’s information, it was possible to reach agreements on the allocation of a quota for Russian projects as part of an accelerated licensing scheme in China. But market participants fear that only large developers will benefit. Russian platforms, for their part, are ready to attract Chinese game projects.
According to a Kommersant source close to the government, the authorities of the Russian Federation and China have agreed to support the entry of Russian video games into the Chinese market. The interlocutor of Kommersant in the industry clarified that the Ministry of Economy is dealing with the issue:
“The ministry discussed with the Chinese authorities the prospects for allocating quotas for Russian games for preferential entry into the PRC.”
The Ministry of Economy told Kommersant that, together with the Ministry of Digital Development, “they are working on a range of issues aimed at developing the digital economy and supporting developers of creative industries, including computer games, including in a number of international areas.” In Mintsifra “Kommersant” did not answer.
Back in March, Russian developers asked the government to simplify the procedure for accessing the Chinese market (see “Kommersant” dated March 31). One of Kommersant’s sources claims that the government of the Russian Federation has already determined a quota for the number of domestic projects that will be able to obtain a license in China under an accelerated scheme. The selection, according to him, will be handled by the Association of Professionals in the Industry of Operating and Game Development (APRIORI, established in the spring by VK, Astrum Entertainment, United Games and others), headed by Alexander Mikheev, director of VK Play.
Representatives of the projects will have to apply to APRIORI, after passing the selection, they will conclude an agreement with the Chinese partner, who will assume the functions of the publisher, the source of Kommersant explains.
He adds that VK, for its part, can attract Chinese games to the VK Play platform. Mr. Mikheev did not answer Kommersant, and VK declined to comment.
The point is, a producer in a Russian game studio explains, that in order to bring a product to the Chinese market, a developer from any country must find a local partner who will evaluate the game for compliance with the law, ask for it to be finalized if necessary, and send it to the National Press and Publication Administration (NPPA). ) that issues the license.
“Licensing may take several years, and then the partner receives 10–50% of the profit from the sale of the game, depending on the range of services that it provides, for example, marketing support may be included,” clarifies the interlocutor of Kommersant. A number of Russian gaming projects already have licenses in China, for example, Pixonic, which was part of My Games. iDreamSky has been a Pixonic partner in China since 2018. The developer, says the interlocutor of Kommersant, has been waiting for a license for six years: “NPPA did not publish a list of new approved foreign games from the end of July 2021 to mid-2022.”
Now, a Kommersant source in the game development market explains, there are two queues for licensing games in China: projects of local developers are in priority order, followed by foreign ones. If the scheme works, in fact, a third line of Russian projects will appear, he believes: “Probably, they will come second after local ones.”
Dmitry ChernyshenkoDeputy Prime Minister, on the image of Russians in Call of Duty, on April 26 during a speech at the Knowledge marathon:
“The main negative character is a bad Russian, and they say that this is a Russian general. He shoots, kills, drinks vodka.”
It is important that this initiative be useful for all Russian developers, and not just representatives of one corporation and affiliated companies, emphasizes Gadzhi Makhtiev, owner of the Kanobu portal. “Entering the Chinese market can be useful for studios that already have developed online games – for example, 1C with its Caliber shooter and the same Lesta Games (World of Tanks and World of Ships) if it decides develop new games. The expert adds that large game projects will not be able to pay off only in the domestic Russian market, whose share is 1.5% of the world.
The market for console, PC and mobile games in China reached $45.5 billion in 2022, according to Niko Partners, accounting for 37.1% of global mobile gaming revenues and 33.4% of PC gaming revenues. The Russian market in 2021 in My Games was estimated at $2.1 billion.
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