Thoughts on Expanding Your IP Overseas: ChinaJoy 2014’s Experience

Chinajoy is one of the biggest electronic expos in the world and the largest expo in China. As a leading game payment company, Xsolla was there and our director of business development: Aiman Seksembaeva sat down with one of our bloggers from China to talk about Xsolla’s strategy for the global market and involvement with the Chinese gaming scene.


Q: Why did Xsolla come to Chinajoy this year?

A: First, Xsolla in China has several partners, such as Perfect World, Snail Games, Changyou, and we helped these companies export games to overseas markets. Today, we mainly try to understand and help more game developers and publishers to open up overseas markets. Chinajoy makes us realize that many of the Chinese game companies are interested in overseas markets, and we hope to provide more information on overseas markets and distribution channels.


Q: The year of 2014 is named the IP or overseas year in China. How can Xsolla help Chinese game companies go overseas?

A: First, Xsolla provide global billing solutions that can help more companies to go overseas. Because the first problem you will encounter is the legal and financial problems in abroad. In order to solve these problems, these companies often need to pay lot for a professional team. Xsolla can provide such service, because we are very familiar with overseas markets and can provide better-related services. Thus, you don’t need to spend money on hiring a team.

Q: In my previous interviews, I spoke to many overseas games publishers. They all believed that in some mature markets like the United States, the pay channels are relatively fixed, but in some emerging countries, such as Southeast Asia, the pay channels are mainly mobile payments. How does Xsolla work in these international markets?

A: For Xsolla, it is no problem. As you said, in the United States the payment market is relatively mature, but for such markets like the United States or Canada, you have to keep in mind is that there are a lot of fraud and refund problems, which is a major problem. We have set up offices in Brazil because we know that the Brazilian market is very special.


What we usually recommend is to go to the local market and set up companies, only in this way you can understand the local operation, which also can help you better understand the local market. In Brazil, the use of mobile payments is not so popular. In other Southeast Asian regions, we can offer mobile payments. The only problem is the payment channel costs is relatively high, like in Southeast Asia is 6/4, (which means mobile channels fee covers 60%), and India is 9/1. So if any Chinese game companies want to go to Southeast Asia, this should be kept in mind.

Q: What do you think of China’s game market? There is a tendency in recent years that online games are going down. For example, Tencent game company turned all its business to mobile games this year. And I predicted that there will be more than 5000 mobile games come out by the end of 2014. Free-to Play is popular in China, while in USA; people are willing to pay to play. So as a foreign company, do you think this phenomenon is good?

A: As you said, different markets have different payment behaviors. Chinese games are mainly focus on China, and for a long time we all believe that the Chinese market is the No.1 game market in the world.

And I think that free-to-play games are a trend, because that American players and Chinese players have different consuming behaviors, so it is hard to say which one is better or whether this trend is good.

Q:How do you feel about this trip to Chinajoy and the B2B Part? Is there any difference between Chinajoy event and other game events?


A:I have been working in this game industry for many years. Honestly speaking, each event has its own characteristic. For example, in Chinajoy, there are a lot of activities and showgirls, which is different with the event in USA or German. But I believe that Chinajoy can offer us great opportunity and experience.

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