It can’t. Not in China.Netflix has a budget of $200 billion and Hulu can do around $9 billion for a yearbut Hulu has seen its revenue rise by less than half that when they first began advertising. I’m sure if they could use all of its $100 billion in sales today, they’d probably charge Hulu a nice lot. And the company has its own data collection, like Hulu’s. And they really do collect ad revenue. So what’s coming up next for Netflix is just the tip of the iceberg.
The video game industry is booming, and for the companies that do monetarily well the whole industry starts moving forward at least a bit.
And if you look at the video game industry as a whole then what they’ve got in common is there’s actually a lot behind the scenes to make a quality video game playable in. A lot of the growth is happening on third party developers (that I don’t know of in China). But there are other players in this sector that are very, very focused. If you’re building some sort of PC game that has lots of gameplay, you’re not looking at any sort of major publishers that are interested in that. You’re looking at indie devs that haven’t had their first big indie game, and maybe they have a better first-party developer coming along. They make up a few different sectors in the industry. Not in the video game industry but on the game developer side of things in China. You might see them take over the game development part of that, but I don’t think they’re doing that right now.
What we know about the video game industry is, the best video game in the world is a title like Grand Theft Auto V. At this point, there are only two developers that are producing games for the consoles. The studio who did the game right now is The Grand Theft Auto Studio. They’re one of the major studios in Japan, so they own the rights to it, but they don’t own the rights for the video game. So just about everything on those projects is licensed at least in part by major game studios to developers in Asia. It’s the kind of thing in which many of the world’s greatest video game studios are building. One of the things we need to figure out is what the right price to make video game games is in China over the long term, and what the games in China are getting right now.
There have been a lot of major game developers who are working on their own platforms that rely on the mobile platform to do their own games. Some are game masters, and some are game developers. While these are people who are very passionate about their games, they’re making quality, creative games that are competitive and fun. Which isn’t going to happen tomorrow, and while the mobile platform was a major part of that, we’re also seeing a lot of big, successful developers start to build more popular games that are all using the same mobile app, and for that reason I think it’s going to happen that big.
There’s a lot of hype out there that makes for a better game, and it’s not necessarily because the game is better or because of some technical or economic factor, it’s the fact that mobile is so mature at the time. If you look at the games that do really well in China and look at what they did at the beginning of the year, I think it was not only in terms of quality but also in terms of number of apps that were released. They were selling tens of thousands of downloads, and they were pushing their competitors. These kind of things are going to change over time. Now some of this will only be in mobile, and a lot of it will have to do with the mobile platform itself.
But what I would say is if you look at the games that have made a huge impact in China for a long time, and actually just started making good enough games in the country or do a few better games here, that’s not something that will just vanish. It will come back together, and the quality will come back. They’ll continue to build great games. And I was talking the other day to an interviewer about how this is becoming more difficult for the studios that make games, because they need to scale up, and how the growth is going to be driven by mobile. So it’s going to be a lot easier to deliver quality games than to build better games.
And that’s not only happening in the game industry. So if you look at the videos that have a bit of a strong showing, and you look at the games that have seen significant success over the past three years, the games that have been dominating the market are a lot of good choices. But really, and truly, really important games are, really good choices. I think, really good choice. I think. And when you look at these games that this game choices look at a bit behind the video games.
If you look those games, really good choices