XboxOne's word of mouth has been defeated, PS4's launch has been delayed, and a series of negative comments have made us worry about this development: Our domestic game console market is not worth participating.
“Actually, when the game console was lifted, the policy was rather vague. This new policy made the whole market more clear.†The top executive of a domestic game player manufacturer stated: “At the time, the lifting of the ban was limited to the free trade zone, but we were Beijing has not encountered any obstacles to applying for game companies to the industrial and commercial departments."
Like many domestic manufacturers who want to test the water game market, this company also chose the Android platform which is both open and cheap. Android game machines are far from Ouya, the United States and Canada lion Mojo, near Huawei, Zhongjiu, snail, these "game consoles" based on the ARM architecture hardware development in fact and we currently know that "OTT box" in addition to focus on the direction, with the handle other than What is the difference?
In China, the roots of the game’s parallel imports have led to the inability to enjoy other services than games, but this is not the case in foreign countries. According to the latest research report released by Strategy Analytics Connected Home Terminal (CHD) service, Nintendo, Microsoft, and Sony accounted for about 50% of the online video living room in North America in 2014. In 2008, the three companies occupied more than 95%.
U.S. Internet Television Installation
Where did the market share get embezzled? Subject to the functional limitations of traditional cable TV set-top boxes, the market for OTT boxes does not seem to be in doubt. The OTT box also has no clear distinction between "TV" or "game". According to the population of China, there are tens of millions of domestic market space for living room terminals, so in the eyes of many people, this is a blue ocean.
However, among domestic game makers, most of them are silent except for snails that have launched similar game boxes. Only a small number of developers have indicated that they will test the water on the new platform. Since this market does exist, why do most companies choose to wait and see?
As a living room entertainment terminal, video playback is a must-have feature. And this has become a threshold to limit OTT box: Internet TV license. The fact that television boxes can ignore copyright has become history. Therefore, if you want to have the "video" function as a necessary condition for OTT boxes, you must obtain authorization from the seven largest domestic licensees.
After talking about the video issue, let's talk about the game again. Also by the convenience of Android, the development of the game on the box may not be a big problem, at least much better than WP. But as a "game machine"?
The domestic awareness of game consoles is "a high-performance game-specific machine with a large number of high-quality and exclusive games." Is it wrong? However, this does not prevent the OTT box in the low-end market from being the main game function: Internet TV boxes supporting light games and independent games are not uncommon in foreign countries. A considerable part of the market share that the host computer loses in the above-mentioned Internet home terminal data is taken away by this hardware device.
The development path of the living room market is similar to that of smart phones.
Regarding the future development path of the domestic living room market, allow me to give an inappropriate example:
X1/PS4 (if successful in China) ≈iPhone;
OTT box ≈ Android phone.
After traditional TV games gained market acceptance with products and brands, OTT stepped in to the low-end market and expanded non-core audiences. With the gradual maturity of the market, the quality of users of licensed hosts is higher, while OTT is mastering the number of users. In this equilibrium, more and more cross-platform game products. OTT inherits Android's openness, freedom, and versatility. The iPhone's system advantage and brand value can correspond to the performance of the host and exclusive games.
The domestic game console market is just like smartphones just started in China and takes time.
At present, the gross profit margin of domestic OTT equipment is about 20%, which is not high, and the deduction of 10% of channels and the sales promotion are all at a stage of losing money. In the same way, the current prices of the PS4 and X1 BNs can also be compared with those of other countries. The hardware does not make much money. After all, there is still 17% VAT in China.
No matter OTT or licensed host, they are in the stage of competing for market share. I believe that the recent living room market in China is indeed a blank, but not blue ocean. The progress of domestic set-top boxes towards the host/box is like the evolution from mobile phones to smart phones in the past. The market already exists, but it has more features.
In order to welcome the more extensive living room market, domestic OTT hardware manufacturers should call TV licenses and seize market share. As an application/game developer, it is too late to explore new ways of operating and operating thinking. After all, this market has already existed, only to be developed.
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