As Microsoft continues to try and get its Xbox 360 to market in China, an executive for the company outlined why Kinect may be a valuable asset in its push and how MS plans to combat piracy in the Asian country.

Simon Leung (pictured), Microsoft Corporate Vice President, Chairman and CEO for the Greater China region, speaking to the Wall Street Journal, first noted why China is such an attractive region, if it wasn’t already apparent, stating that China would soon be the world’s largest PC market, while it's already tops in the mobile phone and broadband categories.

Leung indicated that China is becoming a growing adopter of cloud computing, which could help protect Microsoft, as Leung stated, “… you cannot pirate a cloud application.”

Asked about selling consoles in China, Leung responded: Read More

Computer maker Lenovo has established a new company as part of a push to make its own videogame console.

Beijing eedoo Technology Ltd. will oversee development of an internally developed Lenovo console named eBox, reports the Wall Street Journal. Planned for release in China by the end of this year, the eBox will be “compatible” with high-definition televisions and allow users to download content from the Internet. Users will be able to interact with the device by using a camera.

eedoo plans to launch the console in China first, since “regulations of game consoles are murky and rampant piracy poses a big challenge for console game sales.”

China Daily, which features a pair of concept drawings of the product, reports that the eedoo team consists of some 40 software engineers. Pricing for the eBox is expected to be “slightly lower” than that of the Xbox 360.
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Blizzard and Chinese game operator Net Ease will officially launch the World of Warcraft expansion Wrath of the Lich King just a few short weeks after it was finally approved in the Asian country.

According to a joint press release from Blizzard and Net Ease, the expansion will go live in mainland China on August 31, almost two years after it was launched (November 2008) in Europe and North America.

Net Ease CEO William Ding stated, “We are fully prepared on all fronts to provide great service and support to all of the new and returning players throughout China, and we look forward to welcoming them to Northrend.”
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A study of 626 Honk Kong Chinese students, who averaged about 10 years old, indicated that while playing massively multiplayer online games appears to contribute to a kid’s psychological well-being, overall time spent playing computer games had a negative correlation with their academic performance.

Dr. Angel Nga-man Leung and Prof. Catherine McBride (pictured) from the Chinese University of Hong Kong's Department of Psychology carried out the study (PDF), which indicated that students spent 67 minutes per day, on average, playing MMOs, 44 minutes on solitary computer games, 44 minutes per day using handheld games and 31 minutes a day playing home video consoles. In gender specific results, boys played more minutes per day in each category when compared to their female counterparts.

The students were also asked to compare their real-life friends against friends from their online games. The results caused the researchers to declare: Read More

A study undertaken by researchers at the Chinese University of Hong Kong indicates that near-sightedness (myopia) has increased significantly over a 10-year period in the youth of that region, and handheld videogames were given most of the blame.

The study was actually carried out between 2006 and 2007 and involved over 800 kids between the ages of two and six. Results were then compared to a similar study undertaken in 1996. It was reported that the number of cases of near-sightedness rose from 157 kids to 222, and that the number of children wearing glasses rose from 2.3 percent in the older study to 6.3 percent in the newer one.

Dennis Lam Shun-chiu, Chairman of the school’s Department of Ophthalmology and Visual Sciences pinned the blame on “playing video games - especially in moving vehicles - and watching television or using a computer for a long time and sitting too close to screens…” according to The Standard.
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It was a different scene today at the Shenzhen, China-based Foxconn plant, which employs over 300,000 workers who assemble everything from iPhones to video game accessories. Today Foxconn held a rally designed to promote living and loving life and to generally boost the morale of workers - who only a few months ago were as unhappy as a worker can be in a plant that expects the average employee to work 80 hours of overtime a week.

Just a few months ago morale was so low that more than a dozen employees committed suicide, prompting the company to install safety nets on the top of its buildings. But more importantly, it made the company face the reality that productivity has to be balanced with the well being of its employees. Read More

While the Chinese Ministry of Culture finally gave the go-ahead for the not-too-distant release of the World of Warcraft expansion Wrath of the Lich King, a taste of some changes Blizzard had to make to models in the game are detailed on a website dedicated to Chinese gaming.

A handful of images appearing on ChinaGame.178.com show the removal of mostly skulls and bones from models in the approved version. Another image also appears to indicate that sprites used to animate blood loss and/or splattering were changed from red to green.

In the images below, original models are on the left while the purported Chinese-approved modifications are on the right.

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China’s Ministry of Culture has finally given its approval (translated) to the World of Warcraft expansion Wrath of the Lich King, almost two full years after it was released in other parts of the world.

A PC World story notes that the expansion had already been deemed worthy of release last month by China’s General Administration of Press and Publication (GAPP). Chinese World of Warcraft operator Net Ease said it would soon release a formal announcement about Wrath of the Lich King, with company spokesperson Liddy Li stating, “We have always been preparing for its release, but there has been no formal announcement yet.”
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While Microsoft’s Xbox 360 is made in China, it still isn’t available for legal purchase there, nor is Sony’s PlayStation 3 or Nintendo’s Wii, but the Redmond, Washington-based company isn’t giving up hope.

Microsoft executive Zhang Yaqin told the Shanghai Daily (subscription only) that the company still hopes to receive approval to sell the 360 in China, but that “… it all depends on the government.” There’s still no set timetable for launch and the issue involves “several government bureaus,” which, of course, only adds multiple layers of bureaucracy.

Last month, Kotaku investigated why game consoles are banned in China. A Niko Partners researcher told the publication, “The government thought that was the best way to protect Chinese youth from wasting their minds on video games, after a parental outcry.” Read More

While a ban that outlaws titillating Internet-based ads for online games went into effect in China on August 1, the edict had no impact on sexy promotions at a recently completed Chinese game expo.

The China Digital Entertainment Expo & Conference, known as ChinaJoy, ran from July 29 through August 1 and is backed by a slew of Chinese government agencies, including the General Administration of Press and Publication (GAPP), the Ministry of Science and Technology, the Ministry of Industrial and Information Technology and the National Copyright Bureau.

The involvement of so many government entities did little to hinder the employment of “columns of Chinese girls in white boots and miniskirts,” at the show, according to a story on Canada.com. The website described some of the action: Read More

Beijing-based Perfect World Co. Ltd., an online game operator and developer with titles such as Legend of Martial Arts, Perfect World, Chi Bi and Hot Dance Party, has made investments into two fellow Chinese media companies.

Perfect World will dump 110 million yuan (approximately $16.2 million U.S.) into Beijing Xinbaoyuan Movie & TV Investment Co., Ltd. and an additional 82.3 million yuan (approximately $12.1 million U.S.) into Shanghai Baohong Entertainment and Media Co., Ltd. Both investments were described as majority stakes for the game company.

Both Xinbaoyuan and Baohong—headed up by “renowned” director Zhao Baogang—were labeled as “engaged in the film and television program production and distribution business.” Xinbaoyuan also operates an entertainment agency business, representing over 20 Chinese celebrities.
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Finally reacting to a World Trade Organization (WTO) ruling from last year, which denied its attempt to limit foreign media imports in order to protect “public morals,” China has now acquiesced to opening its entertainment goods market by March 19, 2011.

A Reuters story noted that the WTO did not question the right of Chinese officials to censor content, but argued that they “could not use censorship to justify illegal trade barriers,” an argument which the WTO now appears to have won. It was previously stated that that the removal of Chinese restrictions to import would, “be a boon to Western makers of movies, music and video games who currently face extra costs and obstructions to distribute in China.”
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Just as China attempts to clean up the image and operations of its online game operators, one online game appears to be offering an inflatable doll as a grand prize.

Via SooToo.com (translated) we learn about the bizarre offering (pictured) being dangled in front of players of the game called War Hero Online (or perhaps it’s called God of War Undefeated). No amount of searching or translation could offer any clues on what the player would have to accomplish in order to win such a prize.

If you were interested in the history of inflatable dolls, the SooToo article kindly provides some background on that subject as well.


Via MicGadget

China’s Ministry of Culture has grown weary of online game companies using vulgar, violent or profane tactics in order to lure consumers to purchase their titles, so it has banned the practice.

The BBC reports that, beginning next month, Chinese officials will be able to force website owners to delete any vulgar content employed in online promotions. Supposedly, one model named Shou Shou (pictured), who was recently embroiled in a sex video controversy, was asked to promote a role-playing game while another unnamed Japanese adult film star was being used to draw attention to the Game Warrior OL.

 “Social commentators” worried that the practice, though not illegal at the time, could “undermine the public's morals. “

The BBC added that, “The new policy has been covered widely in the state-controlled media and on websites here, accompanied of course by photos of the same scantily clad models who have upset the bureaucrats.” Who are we to break ranks? Read More

As part of a bid to understand why so many Chinese gamers are obsessed with online games, a “preliminary” study was conducted with hopes that the findings could assist in the prevention and treatment of those afflicted.

Researchers Wei Peng and Ming Liu began by defining online gaming dependency as “a psychological state characterized by psychological discomfort experienced by online gamers when they are unable to play online games as they wish.”

The study (PDF) sampled 166 Chinese online gamers, who, on average, had been playing online games for around six years. On a normal weekday, those queried averaged 3.06 hours in-game, a figure that shot up to 5 hours per weekend day.

The main contributing factors to online gaming dependency, according to the researchers, were: Read More

Beginning August 1, online game operators in China will be forced to take a series of steps to protect online gamers under the age of 18 from inappropriate content and selling or buying items using virtual currency.

According to the Xinhua News Agency, online games created for minors will have to lose any content that would lead to “imitation of behavior that violates social morals and the law.” The regulations deal with content that is horrifying, cruel or otherwise unwholesome, specifically any portrayals of “pornography, cults, superstitions, gambling and violence.”

The virtual currency ban was said to be made possible by a new rule that online game players must register game accounts using their real name.

Gaming operators were also told to “develop techniques that would limit the gaming time of minors in order to prevent addiction, though without specifying what kinds of techniques and a permissible gaming time.” Read More

Fourteen patients from the Huai’an Internet Addiction Treatment Centre in China decided they had enough and tied an instructor to a bed in order to make their escape from the facility.

The group, which ranged in age from 15 to 22, grabbed a taxi to a nearby town, but their similar garb, and lack of funds, raised the suspicion of their driver, who took them directly to a police station. All the escapees were then quickly returned to the treatment center, according to a story on the Telegraph.

One escapee’s mom broke down in tears at the police station, recounting a story in which her son played online games for 28 hours straight.

The facility makes its charges go to bed at 9:30 PM and requires them to partake in two hours of physical activity per day, as well as take mandatory courses in calligraphy and Chinese philosophy.
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New York State Attorney General Andrew Cuomo is looking into claims that several Apple stores in New York City discriminated against Asian customers trying to buy iPads prior to the system's launch in other regions outside the United States.

According to Politico, a Queens Assemblywoman tipped off the AG's Civil Rights Bureau after her constituents complained about being a asked series of unusual questions while trying to purchase multiple iPads. The inference is that Apple Store workers seemed suspicious of these purchases and - perhaps - suspected that some were being sent to China. Keep in mind that this allegedly all took place in early May before the iPad was available outside the United States. The stores where this happened were the flagship stores in Soho and on 14th Street in Manhattan. Read More

The Chinese government is calling on the sizeable network of game operators within its borders for assistance with an anti-drug campaign.

Over 50 online game operators, including the likes of Shanda Entertainment and Giant Online, have said they will take part in a competition to create anti-drug public service advertisements at their own expense. The consortium was put together by Shanghai’s anti-drug commission, according to a story on China.org.cn.

The PSA’s judged to be best will eventually be shown on the city’s mobile TV network and in Internet cafes.

Of China’s 30 million online gamers, “most” were billed as being men, under the age of 35, which coincides with numbers estimating that 75 percent of all new drug users in Shanghai are people under 35. Xu Chuan, an “official” from the Shanghai anti-drug commission, noted, “Online gamers and drug users have similar demographic characteristics in most of the cases."
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The Chinese government has declared April 21, 2010 as a day of mourning for victims of the April 14 Yushu Earthquake which reportedly killed over 2,000 people and injured more than 12,000.

The Ministry of Culture, in addition to ordering all flags lowered to half-mast, has also issued a suspension  for all public entertainment activities, including videogames. Provision number three of a government issued decree (translated) orders that all cultural and entertainment venues in the China suspend the entertainment activities.
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A Chinese factory that provides computer parts and Xbox 360 controllers to Microsoft, and other U.S. companies, has seen the conditions of its workers scrutinized in a scathing report issued by The National Labor Committee (NLC).

The NLC report focused on the KYE Factory in Dongguan City, Guangdong and offered a laundry list of complaints. Among them, workers earn an average of 65 cents an hour (52 cents per hour after deducting for food), workers average 68 hours of work per week, and that workers are prohibited from “talking, listening to music or using the bathroom” during working hours.

Additionally, the factory was said to have a preference for hiring 18 to 25 year old women, as “they are easier to discipline and control,” and also hires “work-study students,” or 16 and 17 year olds who work mandatory 15-hour shifts six or seven days per week.  Workers also share lodging in “primitive” dorm rooms that house up to 14 people.
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Chinese game developer and operator The9 Limited has entered into an agreement with U.S. online game developer Red 5 Studios that will see the former acquire a “majority interest” in the latter for approximately $20.0 million.

The9 previously operated World of Warcraft in China, before losing the WOW license to its Chinese rival NetEase. The9 still operates games such as FIFA Online 2 for Electronic Arts, in addition to its own games, such as World of Fighter and Atlantica. In its most recently reported quarter, The9 reported a 94.0 percent decrease in revenues to approximately $3.7 million U.S., versus the same period from a year earlier. It cited the loss of its WOW license, which expired on June 7, 2009, as the main reason for the drop.

Given that Red 5 is made up of former executives and game developers from WOW-creator Blizzard Entertainment, the deal seems to make a lot of sense, at least on paper. Red5, however, says that it “can’t tell you" what it's working on.
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A 17-year old gamer playing Counter-Strike in a Jilin, China net café was accused of wall hacking and, following an argument with his accusers, ended up being stabbed in the skull by with a 12-inch long knife.

Hot Blooded Gaming has the story of the incident, which, in turn, is taken from a Sankaku Complex translation of a Chinese blog. The 17-year old stabbing victim retained consciousness and was rushed to the hospital, where it’s reported that after hours of surgery, the knife was removed and the boy appeared to be recovering. Doctors said that the rusty knife missed major arteries, though the boy was placed under observation due to possible complications from the rust on the knife.

 The café in question was apparently quite liberal in requiring IDs for entry, making it popular with local youth.
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An advisor to the Chinese government who proposed a nationwide ban of private Internet cafés provoked hackers into defacing the websites of her business.

Yan Ki, a member of the Chinese People's Political Consultative Conference (CPPCC), suggested the ban in order to combat a host of social problems she blames on the cafés. Yan said that the Internet-enabled hangouts promoted truancy, videogame addiction and pornography, reports The Telegraph.

Yan was quoted as saying:

Many serious problems are linked to internet cafés and businesspeople usually ignore their social responsibilities. Desperate diseases must have drastic cures, which is to ban them all.

Yan, described as a “prominent business woman,” then saw the website for her chain of restaurants hacked, with links deleted and messages posted that mocked her perceived self-importance.

The CPCC is made up of 2,374 members and is described as “an advisory body.” The Telegraph wrote that Yan’s suggestions “stand no chance of being adopted.”

Following a prolonged battle and a series of false-starts, China’s General Administration of Press and Publication (GAPP) has finally given the official go-ahead for NetEase to operate the world of Warcraft expansion The Burning Crusade.

In granting the license needed to operate the game, GAPP said that NetEase had “taken necessary corrective measures." The decision came down on Friday wrote Digital East Asia. GAPP had previously suspended NetEase’s permit over what it termed “gross violations” of regulations.

In related news, China Tech News offers word of a new Chinese initiative spearheaded by game operators that will educate parents on how to best oversee their children’s online game activities.  Game operators Wanmei.com, Tencent, Shanda, Netease, Changyou and Giant Interactive are particpiants in the program, which will provide a variety of support materials for parents and also provide the means for parents to suspend or cancel their children’s accounts.

Digital East Asia also shed light on a series of YouTube videos (pictured) that lampoon the World of Warcraft Chinese debacle and use the situation to provide commentary on the rigid state of Chinese censors. The Wall Street Journal said about the video, “…its subtext is a broad, biting allegory of the fight against government Internet controls, peppered with allusions to a list of real-world conflicts in China over the past year.”

Part 1, with English subtitles, can be found here.

If you thought that the trials and tribulations of Chinese World of Warcraft operator NetEase were over, think again.

In response to orders from China’s General Administration of Press and Publication (GAPP), NetEase has suspended new user registrations for the game. The suspension is expected to last a week and was done in response to GAPP claiming that NetEase had committed “gross violations” of regulations, reports Reuters.

GAPP ordered NetEase to stop charging users to play the game and had returned a NetEase application to run the WOW expansion The Burning Crusade. NetEase, however, had continued to operate the expansion, claiming that it was in compliance with local laws. NetEase has once again resubmitted its application to GAPP to operate the WOW expansion.

NetEase has been stuck in the middle of a government turf battle for at least several months now, as GAPP and the Ministry of Culture battle over which bureau has the right to govern gaming within China.

It appears that China's feuding regulation agencies may have made peace that could lead to gamers in the country being able to play World of Warcraft again.

According to a brief item in JLC Pacific Epoch, China's General Administration of Press and Publications (GAPP) and the Ministry of Culture have come to an agreement about whether NetEase has been illegally operating its license for the MMORPG World of Warcraft. According to "an unnamed insider." the two sides apparently have agreed that regulations were broken, as the story says that a "punishment" will be announced in mid-January.

It remains to be seen what the punishment will be, but at least a decision appears close. The case has been in limbo since mid-September after GAPP told NetEase to stop charging for new WoW accounts and halted its review of an application by NetEase to allow players to play the WoW expansion, The Burning Crusade.

If the sanctions stop short of completely shutting down NetEase in China for its "illegal" activity, it could pave the way for resumption of gameplay on NetEase servers when the sanctions are lifted. If GAPP and the MoC go so far as to ban NetEase from operations, WoW parent Blizzard Entertainment may be forced to find another company in good standing to operate its WoW servers in China.

China's state-run news organization continued the country's assault on videogames last week with a special feature entitled "Confession of a Murderer -- Focus on Pornography and Violence in Online Games (Part Two)."

The latest "expose," as reported by Yahoo News, showed a report from a Chinese prison where a mass murderer confessed that online games made him do it. The statistics in the show reported that 80 percent of violent criminals became violent because of their exposure to online games.

Murder has now been added to the list of ills caused by games, joining teenage pregnancy and drug addiction, according to reports aired this month by China Central Television. Other reports:

Chinese state media have long criticized online games. The last installment of the CCTV series told the story of a 14-year-old girl purportedly influenced by an online dancing game to start having sex with people she met online. The game, called "Audition," was said to encourage one-night stands and the girl to have had two abortions.

CCTV this month also aired a report on teenagers who became addicted to cough medicine and then drugs like methamphetamine as a way to keep their energy up during all-night gaming marathons. The boys were said to spend their time in Internet cafes, which are often filled with chain-smoking young men using instant-messaging programs and playing online games.

The propaganda blitz coincides with China's continued attempts to rein in any activity that threatens the harmony of the state. Social network games and World of Warcraft have already gone head-to-head with China's regulatory agencies and have so far come out on the short end.

While it may never become a true open market for foreign media, China is being forced by the World Trade Organization (WTO) to at least take a small step or two in that direction.

In filing an appeal against a WTO ruling earlier this year, China had claimed that routing foreign media through its own distributors was a requirement in order to protect “public morals.” The WTO did not agree and has denied China’s appeal, reports the Wall Street Journal.

China now has one year to comply with the ruling and to open its country to more films, videogames and music, which could obviously be a financial windfall for Western companies eying global expansion. If China does not comply within the specified timeframe, the U.S. could rain down trade sanctions on China equivalent to revenue lost on media not allowed into the country. Such sanctions could total billions of dollars.

U.S. Trade Representative Ron Kirk stated:

U.S. companies and workers are at the cutting edge of these industries, and they deserve a full chance to compete under agreed WTO rules. We expect China to respond promptly to these findings and bring its measures into compliance.

China’s Yao Jian, a spokesman for the Ministry of Commerce, responded:

China has conscientiously carried out its obligations under WTO rules in terms of access to the publishing market since its entry into the WTO.

China currently allows only 20 foreign films a year to be released within its borders, a number that the Motion Picture Association of America (MPAA) does not see changing, even in light of the new ruling.

The Journal called the rejection of the appeal, “… one of China’s biggest-ever losses at the WTO.”

The Chinese government appears to be expanding its control over the games industry, this time setting its sites on social games and networks, according to a guest article on TechCrunch.

When the government gets involved and censors certain content, commenters refer to the game as being "harmonized," as happened with Mafia games during the Summer. But apparently social games are taking a closer look at actions and changing language in their games in an attempt to stay a step ahead of the Chinese censors. For example, players of the popular Happy Farm now pick their neighbors crops, not steal them:

Five Minutes, the developer of the smash hit Happy Farm (the first SNS farm game), confirmed that the terms had been voluntarily changed in an interview with BloggerInsight. This comes as the government is "considering specific social gaming laws and regulations, to be enacted as early as next year ... to end the chaotic market conditions," according to ChinaNews, which scooped the story on Wednesday last week.

The article says that the government has gone so far as to spread doctored news accounts to damage the reputation of popular social games like Happy Farm.

And the threat of regulation is prompting some developers to be proactive to stay ahead of the government:

Although the SNS landscape is splintered, the government is determined to maintain control. There is no Facebook, no single dominant social network for all of China: the top 3 are Qzone, Kaixin001, and RenRen (see chart).  When it comes to games, Qzone and Kaixin001 develop everything in-house with games inspired from Facebook, while Renren has a mostly open API so it can tap into outside developers to copy games for them. All have keyword lists and teams responsible for the instant removal of “objectionable” content.

Platforms have borne the responsibility for game regulation until now, but developers may soon become practiced in self-censorship too. The new regulations will likely be similar to those for MMORPGs: a list of “do’s and don’ts” for Chinese social games, according to an industry insider. This could include age ratings or a requirement that social games be suitable for players of all ages.

The article concludes with a warning to Western game developers hoping to tap into the Chines market:

The China market is seductive, but outside game companies should proceed with caution. Foreign developers would be wise to cultivate political ties and partner with or build a local studio, as Popcap Games did. Also, be sure your games promote "harmonious social values" -- Mafia Wars need not apply.