This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Console Translation: Which Stocks Are Cracking The Chinese Gaming Market?


George Tsemberlis, Kapitall: China recently lifted a 13-year ban on imported game consoles. What does this mean for foreign developers?

This summer the Chinese government announced the end of the 2000 ban that kept foreign-made game consoles from being legally sold in the country.

(Read more from Kapitall: Next Gen Gaming with New Xbox One and PS4 Consoles)

While domestic-made consoles and illegal imports are easily found on the Chinese gray market, the Xbox One   (MSFT) and PlayStation 4  (SNE) will be the first console generation in 13 years to challenge the $11 billion dollar a year Chinese gaming industry with the full support of its developers.

Restrictions on communications and dealing with foreign businesses have fostered a truly unique gaming culture in China. PC games dominate the market share with the most popular genre being MMOs, digital CCGs and other free-to-play games.

These genres are disproportionately popular in Asian countries, where gaming is more likely to occur in an internet café than at home. Some of the most successful Chinese games include:

  • Long Jian 龍劍 (Dragon's Sword Online) and Fantasy Westward Journey 梦幻西游 by Netease Inc. (NTES)
  • 天龙八部 (Eight Part Heavenly Dragon) by LTD (CYOU)
  • 天龍八部 (Demi-gods and Semi-Devils) by Inc. (SOHU)
  • Perfect World by Perfect World (PWRD)
  • Million Arthur by Shanda Games LTD (GAME)
  • ZT Online by Giant Interactive Group INC. (GA)

​Click the interactive charts below to see quarterly sales for these Chinese gaming companies.

Many of these games attribute their popularity to the use of aesthetics and themes from romanticized stories from Chinese mythology and history, such as Sun Wukong and the Three Kingdoms period.

Activision (ATVI) was one of the first western developers to attempt an entry into the Chinese market. Blizzard’s highly successful World of Warcraft MMO was released to China in 2009 and continues today through a partnership with Netease as an infrastructure provider.

The game differs from its western counterpart in its pricing structure and content, to reflect Chinese gaming habits and cultural sensibilities. Blizzard hopes to build their foothold with the impending release of its Hearthstone CCG, based on the Warcraft universe and currently in beta.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs