37Games Teams Up with Chinese Media Giants to Diversify Its Product Line
Source: 37GamesDate: 2015-08-13
SHANGHAI, Aug. 13, 2015 /PRNewswire/ -- At ChinaJoy -- the biggest annual carnival of gaming industry of China, 37Games (officially 37 Interactive Entertainment, A Stock: 002555), a top ten Chinese gaming company, held a conference to announce its plans for the coming months. 37Games has already acquired the adaptation rights of multiple popular franchises such as MMORPG Lineage II of NCSOFT (Korea), TV series "Chinese Hero Zhao Zilong 2015" of Mengofun and film The Monkey King 2. Together with FILMKO Entertainment, 37Games is also investing in film making as the company is seeking to expand its business outside the gaming industry.
From 2014, 37Games had started to adopt games from popular client games to browser games with success. In 2014, the game Archangel's Sword (a browser remake of the once most popular MMORPG in China: MU) authorized by Webzen and developed by 37Games was a massive hit in the Chinese browser game market. It has become one of the most iconic browser games of the year. In the same year, the monthly turnover of another browser game adopted from a classic client game, Legend of Conqueror has reached 200 million RMB. In the past decade, Lineage II was also one of the most celebrated MMORPGs in China. The management team at 37Games is very enthusiastic and optimistic about the cooperation with NCSOFT.
As for another important franchise, TV series "Chinese Hero Zhao Zilong 2015" of HunanTV is scheduled to be broadcast in December of 2015 and its game will also be published at the same time on 37Games. HunanTV is now the 3rd biggest TV station of China in terms of market share. Its products usually target younger, key demographics. This is a crucial demographic that plays a major part when 37Games considers strategic partners. In May of 2015, 37Games had already established a strategic cooperation with MengoFun (subsidiary of HunanTV) in terms of utilization of intellectual properties, media and advertisement resources and capital. A leading Chinese animation studio, ALPHA Animation is also involved in this cooperation.
Adaptation rights of other popular franchises acquired by 37Games include the 2016 film "The Monkey King 2", TV series "Nirvana in Fire", and Japanese and Korean animations Chibi Maruko Chan, Ultraman and Bernard.
Besides the adaptation rights, 37Games has announced the strategic cooperation with FILMKO Entertainment. At the press conference, Co-founder and president of 37Games, Mr. Eric Li and FILMKO CEO Mr. Wang Haifeng have announced that the two companies will jointly invest in two films, "Summer Desire" and "The Eight Immortals". This is the first time that 37Games is investing in film making, and marks a milestone for 37games.
According to a report by PwC, China is now the second largest film market. Its total box office revenue from 2013 was 3.13 billion dollars. PwC predicts that the number will increase by 88% by 2018 to the sum of 5.9 billion dollars. However, the problem of China's film market is that more than 80% of the income comes from the box office, while the ratio is around 30% in the United States. 37Games is trying to build a game-film network to utilize popular film franchises. Earlier this year, the browser game Dragon Blade published by 37Games received a largely positive response. The game was developed and adapted from a Jackie Chan movie of the same name.
At the conference, Mr. Eric Li mentioned that the competition in China's gaming industry is unprecedentedly intense, and developers and publishers are eager to attract players with popular intellectual properties from films, TV series, and animations. To game publishers, the existing fan base of these IPs are invaluable. However, to the players, what really matters is the quality of the game. Chinese developers are trying really hard to catch up with their foreign counterparts in every aspect of game design including story line design, graphics and core gameplay. The network that 37Games is trying to build will break the boundary between different types of entertainment products and fully utilize their resources to develop and publish higher quality games.
About 37 Interactive Entertainment
37 Interactive Entertainment (Shanghai) Technology Co., Ltd. (also known as "37Games") was founded in 2011. In 2014, the company has successfully landed on China's A-Share stock market (Stock code: 002555) and ranked 23rd among Chinese Internet companies in 2015. As a game developer and publisher, 37Games provides browser games and mobile games in multiple languages including Chinese, English, French, Turkish, Thai and Vietnamese.