Video game consoles

	Nanchong Xingyu’s model BL-T25 is a 16-bit console with IR controllers and 18 built-in games.

The video game console industry remains, thanks to the staying power of the Wii. Sports, fitness and family games drive sales.

Spurred by generally optimistic projections, China suppliers of video game consoles continue to be aggressive with product development.

This comes as recent patterns in the spending behavior in North America and Europe, the line’s key markets, show an increase in video-game purchases. With the economic downturn, many consumers are opting for “staycations” and cutting down on trips to minimize travel expenses.

In response, China suppliers are directing R&D toward family-friendly entertainment.

The emergence of sports and other content that promote fitness is driven primarily by the popularity of the Nintendo Wii, which is often credited for renewing interest in video games. The Wii was launched year-end 2006.

In fact, some video game consoles from China are designed to resemble the Wii outwardly. Such models are based on a different IC solution, and run less-complex games that are not graphics-intensive. This particular product line includes 16-bit units exported mainly to Europe and the US.

China’s selection also covers wired 8-bit versions, which, together with 16-bit designs, account for the majority of output. Models are compatible with PAL and NTSC TV systems, have embedded 512MB memory for built-in games, and support 1 to 4GB memory card. They are exported to South America, the Middle East and Asia.

Mostly priced between $2 and $10, 8-bit video game consoles have a larger share of the market than their 16-bit counterparts. The latter go for more than $10.

Some models mimic the Wii by having wireless motion-sensitive controllers that enable interactive play. They do not infringe on Nintendo’s IPR since different hardware and software solutions are used. Such products are less than $20.

High-end 32-bit consoles are also available. The line will be the focus of R&D efforts in coming months, with suppliers emphasizing better graphics.

In addition, companies plan to release models with improved aesthetics, and ergonomic and more precise controllers.

	The 8-bit GKG-0001 from Gong & Ke comes with built-in games, two joysticks and a gun controller.

Guangdong is the major sourcing center for video game consoles in China, supported by well-established industries that go back 20 years.

The province is home to subcontractors specializing in product design, mold making, plastic injection, software development and EMS, and solution and component providers. Its proximity to Hong Kong, meanwhile, facilitates shipments.

Most Guangdong makers have in-house R&D capability. They cooperate with local design houses in developing game codes.

Some of the major suppliers there are Dongguan Dewei Electronic Co. Ltd, Shenzhen Keentop Electronic Co. Ltd, Gong & Ke Electronic Mfy and Shenzhen YuYuan Electronics Fty. Trading agents can also be found in the province.

There are about 150 companies in China offering video game consoles, with the majority based in the Pearl River Delta region.

Compared with their counterparts from other electronics and telecom industries, manufacturers of video game consoles are more likely to own mold-making and plastic-injection workshops. Performing these processes in-house helps reduce total production outlay.

Suppliers of 8-bit models usually turn out more than 50,000 sets per month, while those offering 16-bit designs have an output of 20,000 sets.

Shenzhen Keentop Electronic Co. Ltd was established in 2004. It supplies 8, 16 and 32-bit video game consoles and accessories. The company has released ten console models to date, and exports 30,000 to 40,000 units a month.

E-Best International Electronics Co. Ltd was established in 2000. The company specializes in the development, manufacturing and marketing of video game consoles and accessories. It has a 2000sqm ISO 9001:2000-certified factory and exports about 20,000 units a month.

Established in 2003, Gong & Ke Electronic Mfy produces pocket and TV game products such as 8- and 16-bit consoles. All of the suppliers products are exported. It has the capability to make 100,000 units a month.

Nanchong Xingyu Electronic Co. Ltd, which was established in 1995, also supplies FM radios, pedometers, electronic pets and electronic toys. The company has a 500,000-unit monthly capacity.