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Forums - Microsoft - What happened with China?

Tagged games:

larrysdirtydrawss said:
waiting on ps4?

Or maybe OUYA?



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China happened to China. I have a feeling, just a little inkling, that there are not a substantial amount of Chinese who can afford to spend money on a console, especially if the price is similar to what we pay.

Also, the good ole black market.

Actually, I don't really know. Don't pay attention to me.



China is so oppressed, surprised they moved anything.



NintendoPie said:
China happened to China. I have a feeling, just a little inkling, that there are not a substantial amount of Chinese who can afford to spend money on a console, especially if the price is similar to what we pay.

Also, the good ole black market.

Actually, I don't really know. Don't pay attention to me.

*pays attention*

I guess consoles won't have legs there.



*looks at his consoles*
Nope no legs there ;P



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fory77 said:
NintendoPie said:
China happened to China. I have a feeling, just a little inkling, that there are not a substantial amount of Chinese who can afford to spend money on a console, especially if the price is similar to what we pay.

Also, the good ole black market.

Actually, I don't really know. Don't pay attention to me.

*pays attention*

I guess consoles won't have legs there.

"Though many foreign companies have remarked on the importance of China’s middle class as a consumer segment, few realize just how dramatic its ascendance is. From 1995 to 2005, the population of China’s middle class—defined here as households with annual incomes ranging from $6,000 to $25,000—grew from close to zero in 1995 to an estimated 87 million in 2005, according to MasterCard Worldwide, Asia Pacific. China’s middle class will jump to 340 million by 2016 (see Figure 1). The purchasing power—disposable income minus savings—of China’s middle class is also growing. In 2006, around 39 percent of urban households were middle class (see Figure 2). By 2016, that percentage will likely rise to 60 percent. At present, the middle class accounts for 27 percent of China’s total urban disposable income. By 2015, that percentage is expected to rise to more than 40 percent (see Figure 3). Considering its swelling numbers, purchasing power, and trajectory, China’s middle class presents marketing opportunities that companies cannot afford to miss."

http://www.chinabusinessreview.com/understanding-chinas-middle-class/

Basically in 2 year's time close to the entire population of the USA will be "middle class" in China. Given the defintion of middle class in terms of income in China is different, and significantly lower, than in most western markets it means only those who are at the top end of that rage are realistically potential game console buyers.  One can't imagine spending 10% of one's annual income on buying a game console, and that's before you've bought any games. I spent less 0.6% of my annual income on buying my PS4 (1% when you count the games, the extra controller and the camera), and even then it was a shared purchase with my 2 sons chipping in their own money, and we put money into the share market back in late 2013 to make a few bucks so that about half of that cost would actually be covered by capital gain from the shares. So I had to plan and save to make my 1% of annual income purchase. And a Chinese middle class person at the top of their income range has to spend 2.4% of their annual income to buy an Xb one, with no game (or hopefully with one bundled game).

Which means the much smaller upper-middle class demographic, though quite large from a global perspective, is more like the demographic ho legitimately have the ddiscretionary money to spend on a console. And upper middle is $25K-100K per year. That upper middle is probably less than the population of the UK. Then the elite classes of income number in the handful of millions, so a tiny market, possibly about the same as the population of New Zealand. Many middle aged, and mostly who's kids are already grown up. 



“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell

"When the power of love overcomes the love of power, the world will know peace."

Jimi Hendrix

 

i think the second month it shouldnt sold more than 20k units, vg did included these 100k in ''other'' number at that month



Good analysis, considering that the gaming market in a regular gaming culture is still quite small compared to other electronic or entertainment markets... China seems even smaller in that regard....

That being said having a growing middle class is one thing on paper being able to accommodate and sustain it in the long run is an other... Staying competitive, while rising up is a tricky game many have failed... Without talking about all the global issues it will cause and also the potential of that middle class skipping town if they feel the grass might be greener elsewhere...

Anyway on paper business is always good and easy but more often than not it fails to incorporate factors and variables of the real world that can greatly change the outcome...



I haven't heard anything about it, can't be good



When I said gaming market I meant console gaming of course....