Eedoo to take on big boys in video-gaming market

By Shen Jingting (China Daily)
Updated: 2010-08-27 13:47
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Eedoo to take on big boys in video-gaming market

The new Xbox 360 is pictured on display after being unveiled during a media briefing at the Wiltern Theatre in Los Angeles June 14, 2010. [Photo/Agencies]

The survey also found that if the price falls to 2,500 yuan per unit, over 29 million families may be able to afford one.

"I expect more than 1 million Ebox's may be sold annually after the first two to three years," Luo said.

He also revealed a dozen investment organizations have contacted Beijing eedoo, and new funding, estimated at around $10 million, will be injected into the venture by the end of this year.

"The long-term goal is to get the company listed," Luo said.

At present, 16 global video game developers have signed contracts to provide content to Beijing eedoo.

Around 30 free games will be included with each Ebox purchase.

According to DFC Intelligence, global revenue of video game hardware and software reached $60.4 billion in 2009. The figure may rise to $70.1 billion by 2015.

In China, the total market volume is unknown, because the Chinese government has banned importing game consoles since 2000 and gray market transactions are illegal.

The reason for the restrictions is because the government considers game consoles a potential danger to the physical and mental development of youth.

Zhang Yaqin, Microsoft's corporate vice-president who leads research work in China, said in July that Microsoft hopes to get approval from Chinese regulators to begin selling the Xbox in China.

"We hope to launch the Xbox as soon as possible, but it all depends on the government," Zhang said at the 2010 China Digital Entertainment Expo and Conference (Chinajoy), an online gaming fair in Shanghai.

The Xbox is manufactured in China and more than 40 million Xbox units have been sold overseas, according to Zhang. However, domestically, Xbox suffers from both market inaccessibility and piracy problems.

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Beijing eedoo's Luo said his company was not afraid of challenges from international competitors, even if they do penetrate the Chinese market.

"We understand Chinese culture and customers better than our competitors. We still hold advantages in terms of Chinese game content, sales channels and customer service," Luo said.

Ouyang Xiangyu, managing director of Legend Capital and an investor in Beijing eedoo, said market competition is good for eedoo.

"One of the biggest challenges is to develop more games with a Chinese cultural element. That would help eedoo to win customers' hearts," he said.