CMGE Attends GDC to Gain In-Depth Understanding of Chinese Mobile Games Market

CMGE Attends GDC to Gain In-Depth Understanding of Chinese Mobile Games Market

PR Newswire

SHENZHEN, China, March 21, 2014

SHENZHEN, China, March 21, 2014 /PRNewswire/ -- The Game Developers Conference
(GDC), the annual game industry event of 2014, was held from the 19^thto the
21^stof March in San Francisco, with over 23,000 programmers, artists,
producers and game development professionals from all corners of the globe
attending. YingShuling, President of China Mobile Games Entertainment Group
Limited ("CMGE"; NASDAQ: CMGE) led a delegation of attendees and showcased
independent IP mobile game masterpieces "Sword of Soul: Creation War" and
"Sword of Soul: Final Battle".

In 2014, the market capital of CMGE surpassed US$1 billion. According to a
report recently released byAnalysysInternational, theCMGEranked the first
by occupying 17.9% of the Chinese mobile game all-platform publisher market in

2014 industry faces reshuffle where only strong expected to survive
There were over 2,000 games available in theChinese mobile game marketin
2013, but only 40 or 50 games can be said to have been successful. In 2014,
another 4 to 5,000 games will emerge on the same market. In addition, client
game and webpage game companies with ample capital resources are shifting to
the mobile game sector, intensifying the competition in an already highly
competitive sector. If 2013 was cited as the breakout year for mobile games,
then 2014 is destined to be the year of the reshuffle.

Ying, characterized the state of the market when he said, "The rapid
development of the market will be accompanied by suddenly intensified market
competition." TheChinese mobile game marketreached11.2 billionyuanin
value with more than 300 million mobile gamers in 2013.Market valueis
expected to reach25 billionyuanin 2014 and up to somewhere in the range of
40 to 50 billionyuanin 2015. In the context of the overall industry
reshuffle, the channel centralization trend will become more apparent, and
resources will become focused on a limited dozen major channels.

Quality issuers bring opportunities to small and medium-sized CPs
With the industry reshuffle, the mobile game CPs, especially the small and
medium-sized players, are facing increasing pressure to survive, and
cooperation with distributors has become the preferred option.

"During the busiest time, I have to review nearly 200 mobile game products
every day. There is too much information and I don't even have time to sleep,"
Ying added. The rise of the publishers is inevitable. Due to the large number
of mobile game products, limited access to resources and in the face of the
packaging and promotion demands of a large number of new products, the
publishers have no choice but to move their focus to the packaging and
promotion of high-quality games. As a result, includingCMGE, game publishers
are quickly becoming an important industry link of the mobile game market, and
an important driving force in the development of that market.

As an illustration, ChengduCrimoonTechnology Co., Ltd, the developer for
"Warriors of Fate - Enhanced Edition" with monthly revenue over ten
millionyuan, was a small player with just a little over a dozen staff before
boosting byCMGE. Now the firm is valued at over 600 millionyuan. So far,
nineCMGEproducts generate monthly income exceeding ten millionyuan.

High quality IP adoption by mobile games
For client, web and mobile games, intellectual property rights have become the
hottest topic across the industry. Manufacturers continually try to maximize
their influence in the market by every which way, including acquisitions,
partnerships and homegrown creation of new products. The year 2014 is looking
to be the year of IP for the domestic mobile game industry with Jin Yong
martial arts, Western literature, classic stand-alone, anime copyright, movie
copyright and other highly coveted IP groups becoming the objects of
competition for manufacturers.

Movie IPs areamong the most coveted and coincide closely with the target
audience of mobile games. IPs on the market have been acquired for films, such
asFrozen,Daddy was a Thief, andJourney to the West: Conquering the
Demonsand other films and have been integrated into mobile games, in addition
to the overseas blockbusters that have been rolled out in China.

In addition to the movie IPs, animation, novels, television programs and other
IPs have also attracted attention from the market. It goes without saying that
preferences for IPs vary. CMGE has initiated a new strategy in terms of how it
deals with the film, television, animation and independent IP sector.

About GDC:
GDC is the abbreviation of Game Developers Conference.
GDC is the largest annual gathering of game developers, with tens of thousands
of game developers attending the event each year. Conference awards include
Best Game Award, Best Original Music Award, Best Character Design Award, Best
Game Design Award, Best Game Design Award, and Best Script Writing Award,
among others.

CMGEis the world's leading mobile game developer and publisher of mobile
games, focused on the development and release of mobile games.CMGEwas listed
on NASDAQ under the ticker symbol "CMGE" on September 25, 2012 and is China's
first mobile game company on NASDAQ Capital Market.

For more information, please visit


Contact: Lin Jie, Senior Marketing Manager, +86-10-6435-6842,
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