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How Alphabet Inc (GOOGL)’s Entry In China Could Help Western Developers

Alphabet Inc (GOOG) Google

Alphabet Inc ’s return to China, the most populous country in the world, can bring major changes and make Chinese mobile gaming market a viable option for the Western developers as well, something that is not the case at present, says a report from VentureBeat. Last year, Chinese players spent $5.5bn on smartphone and tablet gaming, but only a fraction of it went to the foreign developers.

Alphabet Inc (GOOG) Google

Google Play – a must for Chinese gaming market

Business development Manager of Yodo 1 Games – Matthew Leopold – claims that with Google Play, China will instantly become easier for foreign developers. It has been observed that no foreign games perform well in China no matter whether they are Western or from other Asian countries.

Supercell’s Clash of Clans has performed somewhat better, but it has not been able to make place even in the top 10 highest grossing apps. There are two main reasons for this. First, Chinese players want games that fit their taste, and second, it is very difficult to even test the games in China.

Most studios avoid the country completely for the simple reason that there are many Android marketplaces and unfavorable publishing deals. Huang said, “But the whole situation is going to change [with Google Play. There will probably be fewer and fewer channels, and the remaining channels will likely lower their costs.”

Alphabet Inc ’s Google Play will likely end up as the go-to market for all foreign developers predicts Huang, suggesting, it will attract a lot of exclusive content that is not available in other stores. This way it will become a go-to source for enough gamers, and there won’t be enough room for many of the smaller channels to compete.

And, the remaining will have to lower their prices under pressure from Google’s low prices – 30% compared to the 60% to 70% that publishers and Chinese distributors are taking currently.

Alphabet working to start project Loon in India

Google, which reorganized itself as Alphabet Inc last year, plans of kickstarting its ambitious Loon project soon for which it is currently in talks with a number of local telecom operators in India. This development is happening several months later after CEO – Sundar Pichai – managed to secure govt.’s support for the project.

“We can’t do a Loon pilot without partnering with a local telco. We are talking to a number of them,” said Google India chief – Rajan Anandan – in an exclusive interview with ET.

Anandan did not rule out the possibility of setting up an office with the specific purpose of its early-stage investment fund Google Ventures in India, in the future. However, he declined to share further details and a timeline.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.