Boasting the world’s fastest growing economy and the largest population of any single country, China could be on course to become the world’s largest market for amusements – if it isn’t already – so what’s standing in its way?
ASK a Chinese manufacturer about the government’s policy on amusement equipment and you’re likely to be met with a shrug of resignation – it’s as if you’re discussing the weather, something to be tolerated that cannot be changed. Dig a little deeper, however, and it soon becomes clear that the government is indeed engaging with the industry to determine what the future direction of the sector should be.
China’s amusement industry really began growing towards the end of the 1980s and into the following decade, when a number of homegrown game designers and manufacturers emerged and made their first tentative steps into the international marketplace. Several of those, such as Universal Space, Zhongshan Golden Dragon and Wahlap, are leaders in the industry today.
During the ‘90s, China’s government appeared to be patiently waiting to see how the market would develop, rather than take steps to either encourage or suppress it. In the decade that followed, it moved to tightly regulate the market through what was known as Regulation 44. Between 2000 and 2005, the amusement industry struggled under pressure from the government but demand for amusements was undoubtedly still strong and so the stronger companies, many of which had already made the jump into the international marketplace, survived. In the years that followed, the government seemed to ease its grip and the sector once again began to flourish as game centres and family entertainment centres began to appear throughout the country. But then the transition to a new leadership in 2012 and uncertainty over how the new regime would view the amusement sector resulted in a year many within the industry are keen to forget.
Visit one of the country’s modern shopping malls and, like elsewhere in the world, it is clear to see that family entertainment centres are an important element within the retail mix. Groups of teenagers make for enthusiastic spectators as their friends take on the latest dancing games, while younger children collect tickets from the raft of redemption machines on offer and customers of all ages enjoy playing on the banks of video racing games. Prize vending machines and cranes are dotted around such locations, as well as the malls themselves, filled with familiar licensed plush and high-end electronics. All in all, it is a market that appears to be following the trends seen elsewhere, so why the negativity?
Read the full article in the June issue of InterGame.
