PC gamers urged to look to TV

Industry analysts say local online PC game developers should try to make inroads in TV games, as major video-game operators such as Sony and Microsoft are seeking to increase their game titles with the rollouts of new consoles next year.

Sony Corp announced that it will unveil its next-generation console, referred to as PlayStation 3 -- an advanced version of its popular PlayStation 2 -- next year. Microsoft Corp plans to introduce its Xbox 2 as well, while Nintendo Co also has a similar plan to bring new game devices to the market.

"The three companies are keen to increase their game titles and shift the battlefield to the online market, so local game providers should grab the opportunity to form partnerships with them and tap the TV game market," Lin Yu-sheng (林于勝), an industry analyst with the Market Intelligence Center (MIC) told a press conference yesterday.

The center issued a report yesterday on the outlook for the nation's PC gaming industry.

The report said the market for the industry will reach NT$9.9 billion this year, a 12 percent increase from last year.

With game developers' expertise in developing and marketing online PC games in Asia, they are well suited to be original design manufacturers (ODMs) and original equipment manufacturers (OEMs) for these TV game operators, Lin said.

Lin also said game companies should jointly set up a game portal to enhance gamer traffic and spending -- a business model that has proven fairly successful for South Korean game providers.

Industry insiders, however, said the institute's advice is not really viable.

"We've been in touch with Sony and Microsoft for a long time regarding integrating PC games and TV games, but there are still technical obstacles out there ... I don't think these hurdles can be removed by next year," said Vera Wu (吳淑玫), an investment relations official at Wayi International Digital Entertainment Co (華義國際), a local game developer.

Before the cross-platform technology matures, her company will focus on expanding the PC game market in Taiwan, as well as in the huge Chinese market, Wu said.

The nation's largest online game provider, Soft-World International Corp (智冠科技), also said it sees business potential in TV games, but it will take time to make games that are compatible on computers and TVs, said Softworld spokesman Gavin Lin (林盛隆).

As for forming a united game portal, both firms noted that game providers have established their own subscription models, which will not be changed for now because of technical difficulties.

The MIC report also includes an analysis of the nation's online music market, which it estimates will see sales of less than NT$100 million this year.

"Currently, local consumers prefer P2P [peer-to-peer] file-sharing instead of the pay-per-download model as is the case of Apple Computer Inc's iTunes Music Store," said MIC analyst Hung Chuen-huei (洪春暉) at the press conference.

"As a result, the online music market is estimated to be less than NT$100 million this year," Hung said.

Taiwan's online music distributors that legally obtain copyrights from record labels include iBIZ Entertainment Technology Corp (艾比茲娛樂科技), Hinet and Rock Records' (滾石) joint venture HiMusic and BenQ Corp's (明基電通) QBand.

The three have seen little business as the market is dominated by file-sharing Web sites such as kuro.-com.tw (飛行網) and Ezpeer.com.tw. Both sites have both been sued by the International Federation of the Phonographic Industry and the case has not yet been decided.