Big game: returns may be smaller.

The stock price of online game distributor Gamania Digital Entertainment soared to NT$170 (HK$40.4) a week after listing. Then take Chinese Gamer, which distributes the popular pay-as-you-play Jin Yong, the Story Chivalrous, - that company is also adjusting its financial projections upwards. The signs say the money-spinning power of online games is definitely with us.

There is a cautionary note, though. One view is that, in spite of people's growing interest in online games, the market is unlikely to balloon further, the way it has been doing. That's because Taiwan's Internet population has simply stopped expanding, and there are only a finite number of subscribers.

In fact, the industry itself predicts a 15% to 20% growth over the next year, and points out that the market is expected to reach saturation point after the summer vacation in 2003.

Popular online games in the market include the blockbuster hit game, Lineage, marketed by Gamania. Then there is Dragon Raja and PSO, marketed by Acer TWP Corp, not to mention Cross Gate marketed by Soft Star - and Stone Age, Stone Age Arena and Enewal, marketed by Waei International. The list seems endless.

Jin Yong, the Story Chivalrous Online, is produced by Chinese Gamer of Soft-World International Corp, and another popular title, Xiaoaojianghu is one produced by Interserv International.

Games distributors have been busy releasing new versions, with summer in mind. Acer TWP has just announced the release of Dragon Raja V0.7, with new horse-riding functions. Chinese Gamer of Soft-World is also releasing Exploring the Chivalrous Island, the latest version of its Jin Yong online games.

New entries to entice the market

Leisure games on the rise.

Summer 2002 has also seen new titles peaking, including Dragon Raja V1.0 by Acer TWP, The Three Kingdoms Online by Chinese Gamer, and Stone Age 4.0 by Waei. Gamania and Soft-World also have something new to entice subscribers.

Soft-World general manager, Wang Chin Po, says his company will soon be marketing a South Korean online game, a break from the company's tradition of only releasing its own products. He declines to confirm or deny rumours that Soft-World has won the distributorship for "Ragnarok Online". Wang notes that Korean products have a 65% share of Taiwan's online games market, with Taiwan and Japanese games taking up the rest.

After establishing a firm foothold in the local market, Soft-World plans to extend its operations to the distribution of Korean games, in a bid to cultivate new pastures and grab a piece of the Korean pie.

According to Acer TWP, Taiwan has an Internet population of about seven million and, of those who go for online games, most belonging to the 12 to 20 age group, numbering two million at the most.

In order to expand the market, it is necessary to extend the age limit of game players in both directions. Acer TWP believes one way is to lure white-collar workers aged over 25, because most of them have steady incomes and are willing to pay for their entertainment. The company is considering how and when to introduce these leisure games.

from Francess Lin, Taipei Consultant