When it comes to games, everybody’s a critic or a skeptic. But today, I feel like being a cheerleader. I just took a trip to Santa Monica, Calif., and I had a wonderful conversation with the creators of Naughty Dog’s fourth and final episode of the Uncharted series: Uncharted 4: A Thief’s End. It is perhaps one of the greatest and most beautiful video games ever made, and it shows what can happen when you put a couple of hundred talented people to work for a few years on a giant console game. I’ll write about that thoughtful conversation we had in Naughty Dog’s offices later, but suffice to say that it pumped me up.
I also dropped in on the annual event for the Video Game Bar Association’s gathering of video game lawyers, who talked about the complexities of the industry and international laws as more and more companies head overseas in search of riches. During the week I was traveling, I was astounded at just how many big events were happening in gaming. While I was in Santa Monica and Jeff Grubb was at Casual Connect in Singapore, Jason Wilson and Mike Minotti were driven to exhaustion keeping up with all of the gaming news.
And now I’ve returned home so that I can continue playing Doom, the remake of the classic shooter from Bethesda’s id Software. I’m liking it so far for its speed, fast action combat, and even the semblance of an actual story. I recently played Microsoft’s Quantum Break, and that one inspired me as well, even if it hasn’t sold like a blockbuster yet. It’s spring, and the time of rites of renewal have come for the $99 billion game industry again. All the while, I’ve been entertaining myself with Supercell’s Clash Royale on my smartphone. I can continuously play the games that I really love to play.
The Electronic Entertainment Expo (E3) is approaching (June 12-16 in Los Angeles), and I’m feeling a sense of excitement and intrigue about the new cycle of games that will be introduced. Big companies are starting to maneuver for attention. They are showing me their demos of what they’ve got coming. Take-Two Interactive is teasing that its Rockstar label, which sold more than 65 million units of Grand Theft Auto V, is working on something new. Electronic Arts showed off its Battlefield 1 game, set in World War I, while Activision showed Call of Duty: Infinite Warfare, set in the sci-fi future.
E3 itself still represents something of a wild card. We see some definite signs of weakness in the core of the industry. EA, Activision Blizzard, Disney, and Wargaming have all pulled their booths. We saw a decline in April in both hardware and software sales in the month of April. Uncharted 4 and Doom should give May a boost. Disney retreated by canceling its Infinity toy-game hybrid line of console games.
Above: Flaming arrows in Minecraft on the Oculus Rift.
Image Credit: Microsoft
But the core of the industry isn’t the only thing that can provide growth. Games have expanded into all territories worldwide, and China itself is on par with North America at $24.4 billion in revenues in 2016, according to market researcher Newzoo. Signs abound that the Chinese have growing ambitions. China’s Tencent unveiled plans for its own Intel-based game console. Microsoft’s Minecraft has sold more than 100 million units since 2011, but it is only now finally entering the Chinese market.
And new platforms are awakening. At the Google I/O event, Google revealed that Daydream is a new platform designed for providing better virtual reality (VR) experiences on mobile devices. Google’s focus is on the low end, moving beyond the Cardboard VR headset introduced two years ago. That should stir competition in the market for VR platforms, where Samsung, Oculus, HTC and Valve, and Sony have already staked their claims. Add to that some very interesting progress by Magic Leap, the maker of the dazzling sci-fi-like augmented reality glasses.
Nintendo may not show much more than The Legend of Zelda at E3, but we’re all anxiously awaiting further mobile titles from the Japanese company. And we’d like to know what Nintendo plans to do with its NX game console launching in 2017.
The speculation about what’s coming soon is heating up. Rockstar fans are hoping to see a sequel to Red Dead Redemption. Ubisoft just launched The Division, with 9.5 million units shipped, but it also has a full slate of new titles coming. EA is about to launch Mirror’s Edge Catalyst, and it has a bunch of Star Wars stuff in the works, as well as a new Mass Effect title. Blizzard looks like it has another winner in Overwatch. Microsoft has Gears of War 4 on the way. Clearly, we have no shortage of Triple-A blockbuster games in the works.
Gaming culture is in our face just about every day. Today, for instance, The Angry Birds Movie opens in the U.S., after getting off to a good start last week in a variety of overseas territories. And last, but not least, Glu Mobile launched its Britney Spears: American Dream mobile game for a new kind of audience that has nothing to do with the hardcore console fans. You might laugh at that, but Britney has 45 million followers on Twitter, and the game has risen in the ranks as she’s tweeted about it.
Adding to are the emerging influencers in gaming. YouTube Gaming, Amazon’s Twitch, and esports events are producing a new generation of people who can spread the word about games to millions of followers.
With so many platforms emerging and new influencers on the rise, we’re going into one of the most competitive periods in history when it comes to platform owners and game publishers alike will be jockeying for the attention of the world’s developers and the media influencers. I’d like to kick back and watch it all happen as a spectator on the livestreams. But that’s a little too restful. I’m going to be in the thick of E3 again, and I’m going to have a fun time doing it.
Today we’re proud to announce an exclusive agreement to license Minecraft for Pocket and PC to a NetEase, Inc. affiliate in mainland China. The plan is to develop a version of Minecraft tailored for the Chinese market. It probably won’t affect most of you, seeing as you’re probably not based in China.
But still, this is significant news and significant news requires significant quotes, so here are two. One from our CEO, and one from NetEase’s.
“We’ll always embrace opportunities to bring Minecraft to new players around the world, widening our community, and giving us a new perspective on our game,” said Jonas Martensson, CEO of Mojang, creators of Minecraft. “NetEase understand our long-term vision for Minecraft and support Mojang’s ideals, so we’re delighted to have them on board. We look forward to welcoming China’s builders and adventurers to the world of Minecraft.”
“We are excited to bring Minecraft to Chinese audiences, and expect our large online community to embrace this preeminent game,” said William Ding, CEO and founder of NetEase, Inc. “With our deep understanding of the Chinese market and our ability to successfully launch world-renowned online and mobile games, we offer a strong platform for the introduction of Minecraft to China’s vast user base. We believe this cooperation could leverage the strengths of both Mojang and NetEase, as well as provide the world’s largest audience with a superior user experience.”
When Microsoft opened its wallets in 2014 and traded $2.5 billion for Mojang, the public by and large nodded their heads in agreement. Right, the makers of Minecraft. Those dudes are worth a lot of money.
But any doubters who questioned that sky-high valuation saw a new feather drop onto Microsoft’s cap this week: Minecraft‘s PC and smartphone versions are finally coming to China. On Friday, Microsoft and Mojang announced the beginning of a “five-year exclusive partnership” with Chinese software publisher NetEase, Inc to roll the game out onto Chinese computer and smartphone marketplaces.The game’s Chinese rollout date and release details have yet to be announced, and neither company confirmed how much money exchanged hands for the deal.
China isn’t hurting for games originally published in the West, but Minecraft is arguably the world’s most popular video game. Microsoft was able to publish the game on Xbox One consoles late last year, but those consoles have yet to penetrate the Chinese market to the extent that PCs and smartphones have, and the fact that even Microsoft had to license the game to someone else as opposed to launching it from its own Shanghai campus is a stern reminder of what roadblocks stand in the way of Western software developers.
“The most challenging aspect of doing business in China by far is dealing with the government,” former PopCap executive James Gwertzman said at the 2010 Game Developers Conference (which I covered for a prior employer). There, he gave one of the most comprehensive speeches in recent memory about trying to launch Western games in the communist, regulation-heavy nation.
Enlarge/ Want to release video games in China? Time to file paperwork for a whopping six permits.
PopCap Games
Game publishers must acquire a combined six permits to launch a game in China, and most of those permits cannot be acquired by foreign-operated companies. As a workaround, Gwertzman suggested to the GDC crowd that interested companies should “work with a local partner… or marry someone from China and let them open the domestic company. That’s a common approach.” In the case of his prior role as a PopCap executive, Gwertzman clarified that “we can’t be a publisher in China as a foreign company—we have to be a developer working with local publishers.”
Microsoft is presumably in the exact same regulatory boat, and its choice of partner is telling; NetEase already has a major Western-gaming reputation thanks to its partnership with megawatt game makers Blizzard. The company currently handles Chinese publishing duties for every major Blizzard video game, and it will soon publish the company’s next major shooter title, Overwatch.
Coming soon: Bad press about the name “Steve”?
Six years ago, Gwertzman’s speech foretold a battle that Microsoft and NetEase may soon face as they roll an official Minecraft game out to China. It starts with government regulations.
Enlarge/ Shortly before the Chinese government rolled out regulations on social-mobile video games, a rash of negative articles began appearing in state-run press outlets.
PopCap Games
“Whenever the government is about to regulate something in China, you start to see a lot of scary articles appear in the press first,” Gwertzman said. At the time, he was talking about a rise in social-network gaming on sites like RenRen. The country’s state-run press negatively covered those kinds of video games, complete with horror stories about dying children. Soon, the government instituted rules banning certain behaviors in those games, including “stealing” of in-game items from other players and mafia-styled game concepts.
But in a recent phone interview with Ars, Gwertzman guessed that Minecraft will probably avoid such undue attention with its upcoming launch. “Minecraft is on the good side as it encourages teamwork and learning,” he said. “I see Minecraft as the perfect example of a game that will receive public support [in China].”
Even though six years feels like eternity in media and pop culture, Gwertzman’s speech still stands out because of China’s snail-paced changes regarding media regulation. Rules about permits and locally run businesses have not evolved much, as companies like Netflix can attest to, while the only major change to the game-specific side of regulation has come in the form of a lift on the country’s infamous ban on consoles (though that lift still came with many strings attached).
Now the CEO and co-founder of back-end tech provider PlayFab, Gwertzman says most of what he said in 2010 still applies. The major caveat is that game publication has become a lot smoother thanks to fewer regulations to publishing on mobile platforms such as the App Store. That said, he continues to believe “larger” games with giant multiplayer communities are more likely to be “looked at carefully” by the government.
“You need a local partner in China,” Gwertzman told Ars. “NetEase is on the shortlist of big publishers working with Western companies, and Tencent is another one of the giants. There aren’t a lot of others. It makes sense that Microsoft would look for a partner, and it speaks to how complicated the Chinese market is. Microsoft has one of the largest presences in China of all Western companies, yet in spite of that huge presence, even Microsoft has to establish a partnership like this.”
China’s mix of Internet café culture and smartphone-gaming popularity will probably prove a smooth fit for a series like Minecraft, but the nation’s longtime predilection for microtransaction games (as opposed to full-license purchases) makes the core game a slightly harder sell. Expect the Chinese version of the game to either require a subscription for online access or to place a huge emphasis on paying for its “skins” and costumes. Additionally, Gwertzman points to local-culture conversions as a major factor in a Western series selling well in China, saying that PopCap’s Plants Vs. Zombies didn’t “take off” overseas until it was launched in a “Great Wall” edition.
This article has been updated to reflect the 2015 launch of Minecraft on Chinese Xbox One consoles.
Players around the world log hundreds of hours in Minecrafteach day, but not gamers in China. Today, Minecraft developer Mojang announced it’s creating a whole new version of the game created specifically for Chinese consumers.
Partnering with Chinese internet company NetEase is what’s made this development possible, the very same NetEase that operates games like World of Warcraft and Hearthstonein China already.
There’s no official release date yet and no further information on what kind of alterations to the main game are even warranted for the Chinese market. What we do know is the Chinese version will only launch for PC and mobile devices, not consoles, when it finally makes an appearance.
“We are excited to bring Minecraft to Chinese audiences, and expect our large online community to embrace this preeminent game,” William Ding, CEO and founder of NetEase, Inc. announced. “With our deep understanding of the Chinese market and our ability to successfully launch world-renowned online and mobile games, we offer a strong platform for the introduction of Minecraft to China’s vast user base.”
Minecraft on the Xbox hit an anniversary, and Microsoft wants to give you a gift to celebrate.
The Xbox 360 version of Minecraft turns four years old today, and Microsoft is giving away the 4th Birthday Skin Pack for free to everyone playing Xbox editions of the game. This means that gamers on 360 and Xbox One who own Minecraft can boot up the Xbox Store and download this content immediately to change the look of their characters in the block-building world. It is free through May 16. Microsoft purchased Minecraft and developer Mojang in 2014 for $2.5 billion, and the company is using its investment to keep a link with a massive new generation of consumers that are growing up on one of the most popular properties in the $99.6 billion gaming industry.
The new skin pack features T-shirts modeled after various enemies and animals, known as mobs, from the universe of Minecraft. These include the iconic creeper and the adorable chicken.
Above: Hanging out with the new skin pack.
Image Credit: Minecraft
While Minecraft is now a Microsoft property, the game also exists on PlayStation 4, Wii U, other consoles, and mobile. Despite the conflict of Microsoft putting out a game on a Sony, Nintendo, or Apple platform, the company hasn’t pulled any support for any of those versions. Actually, the Minecraft: Wii U Edition got some Mario-related downloadable content today, which is a strange thing to see.
At the same time, the Xbox 360 and Xbox One versions do get the most DLC, and that’s likely going to continue. But Microsoft is consistently indicating that it will continue ensuring Minecraft is healthy on every platform because it doesn’t want to spoil the appeal of a franchise that could go on to make it a lot of money over the next decade or so.
Minecraft is an exceptionally popular video game among people of all ages. Its influence reaches far and wide. But for one man in France, Minecraft was much more than just a fun distraction. In fact, it changed the trajectory of their business goals. They were able to leverage their addiction to the game into a profitable business model. The story of how a video game development business missed its mark, but was replaced by a lucrative Minecraft hosting service is one you are not going to want to miss out on.
Funding a Passion
James Copeland had a passion for playing video games. So much so, that he dreamed of developing and marketing his own video games. However, before he could make a mark in the world of game development, his company had to get funding.
In order to make this happen, he started a side venture hosting servers for Minecraft gamers called GGServers. As it turns out, this became more profitable than he could’ve imagined, and is now his main focus.
Following Success
When Minecraft was released, it became an instant success. That popularity and growth shows no signs of slowing any time soon. In fact, if nothing else, the popularity of the game (and its related merchandising) is growing exponentially. Growing along with that is Copeland’s venture.
The company has been in operation since 2013 with data centers now located in Montreal, Paris, Chicago, Los Angeles, Kansas, Las Vegas and Prague.
About Minecraft
Minecraft is known as a sandbox game. It has an audience of nearly 20 million active players. It was developed and released by the Swedish company Mojang, which has since been acquired by Microsoft. Players of Minecraft explore virtual realms in the game, but must also gather the materials required to build shelter before nighttime.
Minecraft servers, like the ones hosted by GGServers, give players the ability to engage one another in a multiplayer version of the game. Using hosting services allows players to leave and re-enter the game, so when they turn off their personal devices, they won’t disrupting the gameplay of others.
Monetizing Information
Business owners who are willing to invest money in computer equipment can turn it into a money-making opportunity by renting out server space to teams of players who don’t wish to maintain their own servers. Other games such as World of Warcraft and Call of Duty work the same way. GGServers now rent out servers in 8 locations worldwide with around 10,000 to 12,000 virtual servers online at any given time.
Of course, owning the servers is just the first step. Players count on reliability. If the servers are not properly maintained, and outages become an issue, people will quickly find another hosting service.
Why Minecraft?
As mentioned above, this all started in order to fund the development of a browser based video game. However, Copeland’s entry into hosting servers for Minecraft could not have been timed any better. He started their hosting business in 2013. This also happened to be the year that Minecraft’s popularity absolutely skyrocketed.
The profits became the driving factor behind the decision to make hosting the company’s focus. Copeland decided to play on the “affordability” factor and prove that cheap doesn’t always stand for “low-cost” thus expanding his user-base rapidly to a few thousands in the first year of operations.
