Sample pages only To order the full report please refer to the last page Video Games & Accessories Essential sourcing intelligence for buyers China manufacturer profiles Detailed profiles of 20 verified suppliers and contact details of an additional 10 exporters Product & price trends Prices and specifications of 81 top-selling export products October 2010 US$495 Guangdong Video games & accessories supply center Supply centers & market trends Coverage of leading and emerging supply centers, plus insight into capacity, output and R&D wwwchinasourcingreportscom
EXECUTIVE SUMMARY Video Games & Accessories Supplier capability in China Executive Summary The video games and accessories industry in China will continue to be on an upturn with suppliers expecting an increase in exports on the back of strong demand The peripherals and accessories segment, in particular, in forecast to register substantial growth in coming months as the need for auxiliary devices rises to match new gaming products Suppliers are releasing products compatible with both desktop and handheld gaming consoles Those providing accessories for the Wii, for example, have expanded their selections from basic controllers and silicone cases to enhancers for sports and fitness programs to meet user requirements Exports of Wii game peripherals and accessories are forecast to jump by 10 to 20 percent Besides widening applications and upgrading quality, makers are targeting key destinations such as Europe and North America to broaden geographic reach These regions are currently dominated by international giants Nintendo, Microsoft, and Sony Many companies will continue to explore new markets in Southeast Asia, the Middle East, Russia and South America, where demand continues to climb The following are some of the key trends in China s video games and accessories industry: Suppliers of handheld games are stepping up to the latest technologies to enhance performance and bolster their competitiveness To improve display capability and user interface, new versions will boast larger touchscreens and LCDs with LED backlight Some companies will also incorporate 3D capability The main R&D efforts for Wii gaming peripherals involve enhancing the response speed, motion accuracy and positioning Many suppliers are likewise expanding the operating distance for wireless models Force feedback technology, ergonomics and housing designs will also be emphasized Manufacturers will be emphasizing platform compatibility as well to ensure auxiliary products work with new gaming devices Companies will likewise improve aesthetic design to boast visual appeal Many will complement this with innovations on the user interface Many suppliers increased prices in recent months in response to rising material and labor costs The upward adjustments, however, were limited to between 5 and 10 percent In addition to raising product quality, manufacturers will improve operating efficiency to control costs and strengthen export capability Increasing production outlay due to climbing material and labor costs remains a major challenge that companies face This report covers the video games and accessories manufactured in China, including controllers/enhancers, consoles, electronic handheld games and video game cable assemblies These categories are discussed in the Products & Prices section, which tackles the common features and functions found in mainstream models, and price and development trends The Industry Overview discusses developments in China s manufacturing and exporting industry This section provides insights on the challenges currently faced by makers and the immediate actions undertaken by them The main production hub for video games and accessories in the country is Guangdong province, specifically the cities of Shenzhen, Guangzhou, Dongguan and Zhongshan Shenzhen hosts the largest concentration of suppliers, which benefit from the area s abundant component supply and vast network of service providers In this report 20 in-depth company profiles 10 additional suppliers 81 top-selling export products Supplier demographics Supplier survey Industry statistics & charts METHODOLOGY To produce this report, Global Sources surveyed a wide range of suppliers Rather than focus simply on highprofile makers, we compiled a representative sample of large, midsize and emerging manufacturers All profiled companies are export-oriented professional suppliers that are verified by Global Sources Each supplier is confirmed to be authentic with a legally registered business All companies are visited three or more times to ensure they are export-ready and have real offices and products The listed contact person has been verified to represent the registered company In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials All profiled suppliers participated in a survey designed to provide insight into product and price trends, and challenges facing the industry All survey questions are single choice Suppliers are ranked based on a 6-star ranking system Companies with a higher star ranking provide more business information and verification reports on their Global Sources online homepages Suppliers rated 5 or 6 stars have a Credit Check report from First Advantage or Sino-Trust and a Supplier Capability Assessment report provided by Bureau Veritas online The rankings are correct at the time of publication and may be subject to change wwwchinasourcingreportscom
Contents CONTENTS INDUSTRY OVERVIEW 7 Supplier summary Production & exports Main production center Supplier demographics Products & prices 10 Price guides Exporter ranking Supplier survey 14 Export prices, price increase, export sales, target markets, capital expenditure, challenges, export capability, R&D focus SUPPLIER PROFILES 17 Supplier locations Industry composition Exporter ranking Supplier matrix In-house processes Supplier profiles PRODUCT GALLERY 67 Top-selling export products ADDITIONAL SUPPLIERS 85 Key products, contact details Copyright 2010 Trade Media Limited All rights reserved Reproduction in whole or in part in any form or medium without the expressed, written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited Published by Publishers Representatives Limited (on behalf of Trade Media Limited) 4th Floor, Century Yard, Cricket Square, Elgin Avenue, PO Box 32322 SMB, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong ISBN 978-988-19234-6-2 Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed The author and the publisher of this report (and the publisher s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, Contents), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof) All product images are provided by the companies interviewed and are for reference purposes only Those product images featuring products with trademarks, brand names or logos are not intended for sale Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only We, our affiliates, and our affiliates respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party China Sourcing Reports
INDUSTRY OVERVIEW Industry overview China suppliers of video games and accessories are optimistic exports will continue to be on the upswing the rest of 2010 and through 2011 as demand remains robust Rebounding orders for consoles, gaming devices and software products are expected to boost sales in the months ahead Dedicated portable systems, and PC and online games are likewise spurring market interest Game peripherals and accessories are the fastest-growing segments Makers of the latter are gearing up to broaden their buyer base In coming months, most will expand shipments to Europe and North America, where major industry players such as Nintendo, Microsoft and Sony continue to dominate In addition, they hope to bolster competitiveness against the iphone, the rising adoption of which has slowed down sales of electronic handheld games Meanwhile, companies will continue to strengthen business in traditional key markets and emerging ones, including Southeast Asia, the Middle East, Russia and South America Suppliers predict orders from these locations will climb 10 percent in the near term Makers of accessories, particularly those targeting Wii applications, are riding on the popularity of the gaming device In fact, overseas shipments of Wii and related accessories are estimated to rise 10 to 20 percent by end-2010, as buyers spending capacity recovers after the recession Exports of gaming accessories for the Wii platform have expanded in the past two years from basic controllers and silicone cases to enhancers for sports and fitness programs The last category, particularly those compatible with Wii Fit and Wii Sports, are propelling sales Items designed to serve as Nunchuks and Sports Packs are especially robust Classic remote controllers and chargers are also contributing significantly to revenue China suppliers are likewise expecting the strong global video game industry to prop up sales Worldwide revenue for the line, which includes consoles, and portable and online video games, is expected to hit $701 billion by 2015 from $604 billion last year This is according to DFC Intelligence, a market research and consulting firm concentrating on the interactive entertainment, and video, online and portable game markets Forecasts from Datamonitor, meanwhile, place the global game consoles market, which covers desktop and handheld models, at $256 billion by 2013, representing a 104 percent increase from 2008 Shipments of handheld game consoles are expected to reach 635 million units in 2013, up by 30 percent from two years ago, according to isuppli Challenges China makers, particularly of accessories, are hard-pressed to roll out compatible products without violating the I/O platform intellectual property rights of international brands To address the issue, some companies are developing their own platforms or cooperating with third parties such as chip suppliers to produce their own interface Companies without the capability to develop these are releasing peripherals and accessories that meet the requirements of HDMI 14 and USB 30 Another concern for makers is the continuing rise in raw material costs Spending on key components and materials such as ICs, flash memory modules and rubber rose in recent months LCD and ABS prices climbed 30 to 40 percent and 25 percent, respectively The same upturn is noted for copper, steel and aluminum, which increased between 5 and 30 percent YoY in June To avoid frequent quote adjustments, makers are entering into long-term fixed-price contracts with Supplier summary Suppliers surveyed 20 Export sales $1343mn Export ratio 73% OEM business 55% Capacity utilized 63% Annual R&D spending $82mn Full-time employees 10,630 Data: All surveyed suppliers their buyers Other suppliers prefer not to impose adjustments to keep orders steady To survive tightening price competition, suppliers of gaming peripherals and accessories are expected to push down quotes by about 10 percent in the next six months despite rising material costs Quotes for handheld video game consoles decreased by about 5 percent in the past three months This is especially true in the 8-bit segment where there is fierce competition and low product differentiation For HDMI 14 and USB 30 cable assemblies, suppliers predict a 5 to 15 percent fall in prices as production output rises The majority, however, will be keeping quotes stable for the next six months, resisting pressure from increasing raw material outlay RoHS compliance raises spending further for video game peripherals and accessories suppliers, particularly those who sell cable assemblies Some of them charge clients extra for the certification, which is computed based on order volume A number of companies waive the fee for quantities of at least 5,000 units Industry demographics Guangdong province is the primary production center for video games and accessories in China Among the advantages offered by the area are its complete chain for electronic product manufacturing and services, including experienced manpower, material and component supply, and logistics It also has hundreds of subcontractors that wwwchinasourcingreportscom 7
SUPPLIER PROFILES Industries Co Ltd, a mainland China-owned manufacturer of video game controllers/enhancers, accessories and consoles, and electronic handheld games, was established in 2005 The company has two factories with a total area of 2,000sqm and a capacity utilization of 92 percent Its monthly output for video games and accessories reaches 55,000 units The ISO 9001:2000-compliant factories have 500 workers Export revenue from video games and accessories is expected to increase by more than 20 percent in the months ahead from $800,000 last year More than 80 percent of products were shipped to North America, Europe and the Middle East In the next 12 months, the main target market will be non-eu countries invests $40,000 in product development each year This accounts for about 3 percent of annual sales The company plans to increase its capital expenditure by more than 50 percent in coming months Prices of its video games and accessories remained steady in the past three months Profile Production units/mth Capacity Output Exports 60,000 55,000 48,000 Company facts Year established 2005 Business type Manufacturer Company ownership Mainland China-owned Head office location Hong Kong Number of factories 2 Factory location(s) Dongguan, Foshan (Guangdong) Total factory area 2,000sqm No of full-time employees 500 No of R&D/design staff 80 No of QC staff 100 Annual sales (all products) $15mn Annual R&D spending $40,000 ISO certification Sales $mn/yr Total sales 15 Sales (video games & accessories) Exports (video games & accessories) 08 10 Contact details Sales & output: Video games & accessories Annual sales $10mn Share of total sales 67% Annual export sales $08mn Total monthly capacity 60,000 units Average monthly output 55,000 units Capacity utilized 92% Average monthly exports 48,000 units Export ratio 87% OEM % of exports 50% ODM % of exports 50% OBM % of exports Other export products Accessories for iphone Business contact LI Star Phone (86-20) 8629-1849 Fax (86-20) 8629-0198 E-mail euromsales@gmailcom euromrich@gmailcom URL wwweuromrichcom wwwglobalsourcescom/euromco Address 47 Yuexi South Road, Qiaode Business Center, Baiyun, Guangzhou, Guangdong, China 24 China Sourcing Reports
SUPPLIER PROFILES Capability In-house processes EMC test IC bonding Mold making PCB assembly Plastic injection Reliability tests SMT Popular export models Video game accessory Model EU-002 MOQ 500 units Packaging PP bag Delivery 7 days Price Exports by product Video game controllers/ enhancers 10% Video game accessories 70% Video game consoles 10% Electronic handheld games 10% Exports by market North America 30% European Union 30% Europe (non-eu) 20% Asia-Pacific Middle East 10% Other 10% Description: Skin sticker for Wii; PVC/PP/PET, 3M material; 80g per set; CE, RoHS Video game accessory Model EM-003 MOQ 500 units Packaging PP bag Delivery 7 days Price Survey Export prices Stayed the same Export sales Increase more than 20% Target market Europe (non-eu) Capital expenditure Increase more than 50% Major challenge Design copying/piracy Export capability Improve operating efficiency R&D focus Improve cosmetic design Description: Skin sticker for Xbox 360; PVC/PP/PET, 3M material; 90g per set; CE, RoHS Video game accessory Model EM-004 MOQ 500 units Packaging Colored box Delivery 7 days Price Description: Skin sticker for PSP, PSP Go; PVC/PP/PET, 3M material; 50g per set; CE, RoHS Information not disclosed wwwchinasourcingreportscom 25
Product Gallery PRODUCT GALLERY Video game accessories Model: EU-002 Packaging: PP bag Description: Skin sticker for Wii; PVC/PP/PET, 3M material; 80g per set; CE, RoHS Model: EM-003 Packaging: PP bag Description: Skin sticker for Xbox 360; PVC/ PP/PET, 3M material; 90g per set; CE, RoHS Model: EM-004 Packaging: Colored box Description: Skin sticker for PSP, PSP Go; PVC/PP/PET, 3M material; 50g per set; CE, RoHS Model: EM-005 Packaging: Colored box Description: Skin sticker for PSP, PSP Slim; PVC/PP/PET, 3M material; 50g per set; CE, RoHS Model: EU-001 Packaging: Colored box Description: Skin sticker for Nintendo DS Lite; PVC/PP/PET, 3M material; 50g per set; CE, RoHS GT Coupe (profile page 26) Model: JM-350 moq: 3,000 units Packaging: Blister Delivery: 30 days Description: Bluetooth earphones; Bluetooth 12/20, Class 2; 10m operating range; HSP 11, HFP 15, A2DP 10, AVRCP 10, GAVDP 10; audio streaming; white SBC format; built-in stereo codec and amplifier; 6-button play and call control Information not disclosed wwwchinasourcingreportscom 67
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