China’s Ministry of Culture tightens grip on MMO industry

It’s tough for a Western game developer, working with partners in the region, to maintain creative control of its product in China. And it is getting tougher every day. The Chinese government announced late Wednesday night that it will tighten regulations on online games even more.

China’s Ministry of Culture said in a circular that it would require game operators to re-examine the content of the games they offer to make sure it doesn’t contain and “obscene or violent content” or anything that might be considered “lowbrow.” But what it really means is that the Ministry of Culture wants to stamp out any themes that go against the government’s socialist views. The circular also said that operators must limit the number of virtual marriages and player-versus-player combat sessions in these games.’

The circular says as much plainly enough: they want game operators to “enhance socialist values” and hire “specialist” to monitor content. No doubt these “experts” will be provided or recommended by the Ministry of Culture.

The changes will affect a lot of operators including Shanda Games, NetEase, The9, CDC Games, Tencent Holdings etc. Most of these companies will simply comply with these requests. But do game developers in North America, Europe and other parts of the world want the Chinese government to say what it can and can’t have in its games?

On the other hand, Blizzard learned the hard way that you can’t win against the Chinese government when it tried to switch operators (from The9 to NetEase). Now World of Warcraft is no longer running in that region.

As harsh as this truth is, it should be troubling to any MMO creator who wants to maintain their original vision and have it running in China.
Operators in the region have no choice. NetEase’s Chief Executive Officer William Ding said in an earnings call on Thursday, that, while he had not seen the full details of the circular, his company is willing to comply..

China’s online game industry is incredibly lucrative and growing; by the end of 2009 it should record growth between 30 - 50 percent, with estimated sales revenue of 24 - 27 billion yuan (that’s $3.5 - $4 billion USD). The total number of online game players is estimated to be more than 50 million.

Modern Warfare 2 sanitized for Russia

Chinese government cracks down on World of Warcraft

Activision Blizzard and top Chinese online gaming company NetEase continue to have problems in China as government regulators put the squeeze on the duo related to World of Warcraft. NetEase announced this week that the General Administration of Press and Publication (GAPP) has returned its application to operate the latest version of Activision World of Warcraft in the region due to “gross violations” of regulations.

The Chinese government run agency emphasized the point by posting a statement on its Web site demanding that NetEase suspend charging users to play the game, and started rejecting new account registrations. This news certainly puts into question World of Warcraft’s future in the lucrative region and also didn’t help both companies’ stock prices, which took slight hits.

Analysts familiar with the region believe that this is tantamount to a turf war, after Blizzard walked away from a contract with another Chinese online games provider The9, which the Chinse government apparently favors. While that is certainly a factor, the Chinese government has been cracking down on game content that it sees as undesirable. It especially enjoys cracking down on companies that have foreign investment; in Oct. the government banned many forms of foreign investment into the country’s online games industry.

And the news certainly isn’t hurting NetEase’s competitors; Shanda Games saw a bump of 3.1 percent, while The9 closed at 4.3 percent yesterday on the news. But it does hurt Western companies like Activision and EA, who want to crack the market and take some of the profits being generated there; the Chinese gaming market is projected to grow by 30 - 50 percent this year to $4 billion.

FCC: All Your Ratings Are Belong To U.S.

It is no secret that the United States government likes to have its own control system in place for certain industries. For television it is the Federal Trade Commission, who keeps a tight rein on television, despite the occasional wardrobe malfunction or swear word that slips through the censors, and doles out fines to those who they think have gone to far.

But according to a Bloomberg report, the FCC wants to regulate other things including video games. FCC regulators are considering a single ratings system for television, video games, and wireless telephones - all under the guise of keeping questionable material out of the hands of children and helping parents.

According to the Bloomberg account, the FCC will begin an inquiry into such a system after an agency report is delivered Aug. 31 to Congress on the subject of media blocking and rating techniques. This report is the result of an inquiry by congress on whether children are harmed by inappropriate content, such as sex, violence and obscenity and whether or not the existing FCC system for TV would be a good fit for other content.

West Virginia Senator Jay Rockefeller seems to be at the center of this movement; the Democratic Senator who chairs the Commerce Committee, said at a hearing in late July of this year that his constituents are “horrified” by some programming. The report is the result of a law passed in 2007 mandating such a report to be researched and compiled.

Meanwhile mobile phone providers like AT&T and Verizon Wireless, and software makers like Microsoft have come out strongly against such an idea. The ESA, which created the Entertainment Software Rating Board and the system which currently rates game by content, says that the FCC has no jurisdiction over games.

No doubt this will be a matter of contention for regulators and lawmakers, who see the connected world in which we now live in as highly regulate-able. But as the Internet has remained mostly regulation free, how will the government justify such regulations on content on private services? Will it attempt to regulate Microsoft’s Xbox Live service? Mobile phone networks? Social networks? Opponents see it as a slippery slope for a multitude of content platforms.

We’ll follow this story as it continues to develop.

Source: Bloomberg via Game | Life

Pug Pharm gets NRC-IRAP funding, support

Canada-based social networking game developer Pug Pharm Productions has managed to score funding from the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP). The funds, along with technical and business-oriented advisory services provided by NRC-IRAP, will enable Pug Pharm to develop the kind of games it envisions creating. The company’s focus is on the intersection between social networking applications and online games. Pug Pharm says that it is committed to developing online games that combine the engagement of traditional video games with the technologies of social networking applications. Pug Pharm is lead by Bocska—formerly of Radical/Vivendi, EA/BlackBox, Disney Interactive, and co-founder of Hothead Games.

NRC-IRAP works with small- and medium-sized Canadian firms, providing expertise and advice as well as potential funding in developing their ideas. Financial assistance for this project is a direct result of the Government of Canada’s Economic Action Plan outlined in Budget 2009. For more information check out www.nrc-cnrc.gc.ca.

China’s Ministry of Culture approves GDC China

The 2009 Game Developer Conference China (GDC China) has become the first game development event to be approved by China’s Ministry of Culture (MOC) as part of the People’s Republic of China’s new process to approve organized cultural events related to Chinese animation, comics and games.

“The GDC is proud to be aligned with an organization such as the MOC,” said GDC China event director Meggan Scavio. “The steps the Ministry of Culture is taking are in the best interest of the developers and the future of the games industry. GDC China, being the first officially recognized game developer event by the Ministry of Culture in China is a win and step forward for the games industry in China.”

For more information on this year’s GDC China visit www.gdcchina.com.

Savannah Offering Free Rent for Game Devs

In these rough financial times, everyone is looking for a good deal … even game developers. Answering the call, The Creative Coast Alliance (TCCa) and the Savannah Economic Development Authority (SEDA) have teamed up for an interesting incentive to draw game developers to the Savannah, GA area. The two organizations are offering up to one year of free rent in their Game Development and Digital Media Center, currently under development on the first floor of their newly constructed Class A office building on the Savannah River. According to the announcement made today, the new facility will offer digital media companies “a competitive advantage and it comes conveniently combined with Savannah’s renowned quality of life, lower cost of living and lower cost of doing business as compared to other media hubs such as the Bay Area, Austin, Montreal and Los Angeles.”

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