4 ms·

I'm personally curious if the amount of profit is being overstated. My guess is that video game publishers in China grow to similar quality of western publisher

I'm personally curious if the amount of profit is being overstated. My guess is that video game publishers in China grow to similar quality of western publishers and Chinese nationalism means the gamers from which Blizzard is hoping to glean their "profits" turn to supporting China's home-grown games.

CharlesColeman 7y ago
> I'm personally curious if the amount of profit is being overstated. My guess is that video game publishers in China grow to similar quality of western publishers and Chinese nationalism means the gamers from which Blizzard is hoping to glean their "profits" turn to supporting China's home-grown games. China is not turning out to be a land of milk and honey for western corporations. The best business decision for a Western business with regard to China may be to give up on it, because the PRC wants your local competitor to succeed, not you. https://www.wsj.com/articles/america-is-losing-the-chinese-shopper-11570852805 https://www.wsj.com/articles/america-is-losing-the-chinese-s... > The shift signals a possible end of an era. For years, it was customary for Western executives to tout their plans for dominating China—a market they felt they had to win as markets elsewhere matured. But foreign consumer brands now hold a smaller market share in the categories tracked by McKinsey & Co. than at any time since the global financial crisis, according to a Wall Street Journal analysis of research from the U.S. consulting firm, incorporating data from Euromonitor and IHS Markit. Market share losses were particularly evident in categories such as pet food, passenger cars, videogames, smartphones and appliances. > ... > Some Western companies, including Carrefour SA, Amazon Inc. and Uber Technologies Inc., have decided China is too complex or costly to win for some of their major businesses, and have closed or sold them off after facing powerful local rivals who were able to largely control the market. Ford Motor Co. , Apple Inc. and others remain committed, but are struggling to meet expectations. Amazon said it continues to serve Chinese consumers through its cross-border e-commerce business and remains committed to China. Uber didn’t respond to requests to comment. Ford didn’t comment. Carrefour provided no further comment beyond its press release detailing the transaction. I made this same comment elsewhere, but it's relevant here, too.
- seemack 7y ago
  Thanks for the comment!

CharlesColeman 7y ago

> I'm personally curious if the amount of profit is being overstated. My guess is that video game publishers in China grow to similar quality of western publishers and Chinese nationalism means the gamers from which Blizzard is hoping to glean their "profits" turn to supporting China's home-grown games. China is not turning out to be a land of milk and honey for western corporations. The best business decision for a Western business with regard to China may be to give up on it, because the PRC wants your local competitor to succeed, not you. https://www.wsj.com/articles/america-is-losing-the-chinese-shopper-11570852805 https://www.wsj.com/articles/america-is-losing-the-chinese-s... > The shift signals a possible end of an era. For years, it was customary for Western executives to tout their plans for dominating China—a market they felt they had to win as markets elsewhere matured. But foreign consumer brands now hold a smaller market share in the categories tracked by McKinsey & Co. than at any time since the global financial crisis, according to a Wall Street Journal analysis of research from the U.S. consulting firm, incorporating data from Euromonitor and IHS Markit. Market share losses were particularly evident in categories such as pet food, passenger cars, videogames, smartphones and appliances. > ... > Some Western companies, including Carrefour SA, Amazon Inc. and Uber Technologies Inc., have decided China is too complex or costly to win for some of their major businesses, and have closed or sold them off after facing powerful local rivals who were able to largely control the market. Ford Motor Co. , Apple Inc. and others remain committed, but are struggling to meet expectations. Amazon said it continues to serve Chinese consumers through its cross-border e-commerce business and remains committed to China. Uber didn’t respond to requests to comment. Ford didn’t comment. Carrefour provided no further comment beyond its press release detailing the transaction. I made this same comment elsewhere, but it's relevant here, too.

seemack 7y ago
Thanks for the comment!