Video game enhancers

	This Wii controller from Shenzhen Ke Yuan is made of ABS and has a two-piece crystal protective cover.

Sports kits, controllers, fighting game enhancers and racing wheels form the bulk of output. Adapters and converters are also offered.

The Wii console accessories industry in China mirrors the rise of Nintendo’s Wii console and Wii games around the world. Makers began manufacturing Wii accessories soon after the Wii release in late 2007. As accessories makers, they are up to date with the latest trends regarding the Wii console and Wii games, aligning their product development and production to keep up with market requirements.

China makers’ line of Wii accessories includes chargers, adapters, converters, sports kits, controllers, silicone cases, cloth cases, fighting game enhancers and racing wheels. Among these products, sports kits, controllers, fighting game enhancers and racing wheels form the bulk of output.

Although China makers project increases in their Wii accessory sales in 2008 because of the upward trend in Wii console and game sales, they are still involved in other products. The Wii accessories industry is relatively new and sales comprise 30 percent at most of makers’ revenue.

	Model TYW-1051 from Shenzhen YuYuan is a Wii controller and cell box charger cradle.

China Wii accessory makers offer different products such as chargers, adapters, converters, sports kits, controllers, silicone cases, cloth cases, fighting game enhancers and racing wheels. Wii sports kits, controllers, fighting game enhancers and racing wheels are the main products that they offer.

Jody Yan, export manager at Shenzhen YuYuan Electronics Fty, said that Wii sports kits, Wii fighting game enhancers and Wii racing wheels are the easiest to make because most makers have their own plastic module machines. About 80 percent of Shenzhen YuYuan’s shipments consist of the three accessory types.

Esho Liu, sales director at Shinedata Electronic Co. Ltd, has a similar view, adding that there is higher demand for Wii sports kits, Wii fighting game enhancers and Wii racing wheels than for other accessories for the Nintendo console. For Shinedata, the Wii boxing glove made of cloth is a popular export model.

Makers agree that the timing of a new product release is very important in this industry. Liu of Shinedata said that makers cannot just release any Wii accessory in the market. Suppliers follow Nintendo’s Wii game releases closely, coinciding the release of their accessories with the release of new games.

To keep up with Wii trends, makers invest in product development and employ in-house design teams. Shenzhen YuYuan has a 10-member product development staff. Shenzhen Ezjoy Electronics Co. Ltd has a 20-strong team, while Shenzhen Ke Yuan Electronic Co. Ltd has 18 members on its R&D group.

Shenzhen Ezjoy’s recently released EZ-Wii 045 targets the high-end market.

The model can wirelessly connect to the Wii and act as the Wii screen itself with the help of a 4.3in TFT LCD. It also functions as a portable multimedia player (PMP) capable of rendering MP3 and MPEG-4 files. It also doubles as an FM radio and audio recorder. The company is set to heavily promote the EZ-Wii 045 this year.

Although a very young industry, competition in Wii accessory manufacturing has been fierce among makers, especially where prices are concerned. To bring down production cost and offer competitive prices, some makers are substituting ABS, the main material used, with polycarbonate. Despite this, no price cut is foreseen, especially for products made of ABS.

Wii chargers are quoted from $5 to $7. Sports kits are from $4 to $6. Cables are priced at about $1, though high-end cables such as HDMI connector cables and multifunction connector cables are priced more than $5.

Silica gel cases are priced from $1 to $2, while cloth bags are about $2.

Shenzhen Ezjoy’s high-end offering, model EZ-Wii 045, is priced at about $100.

As product development and manufacturing hinge exclusively on Wii games, makers continue to maintain their production at current levels and keep Wii accessories as a minor line in their product selection.

Shenzhen YuYuan’s Wii accessories accounted for about 30 percent of its business in 2007. The company also makes non-Wii video game accessories like controllers, memory cards, adapters/converters, cloth bags and cases. Shenzhen YuYuan began to make Wii accessories in November 2006. Yan said that as a maker in the accessories industry, Shenzhen YuYuan follows closely the developments regarding Wii.

At Shenzhen Ezjoy, Wii accessories comprised about 8 percent of its sales in 2007. The company entered the line in December 2006. Its other products are digital photo frames, game accessories, MP3/MP4 players, iPhone accessories and GPS devices.

Shinedata’s Wii accessories line accounted for about 25 percent of its business last year. The maker produces other video game accessories such as controllers, adapters/converters, cables, chargers and cases. It began producing Wii accessories in January 2007. Liu said that Nintendo will release more exciting games this year. She believes that the Wii accessories industry will indirectly receive a boost as a result.

Shenzhen Ke Yuan Electronic provides other handheld game accessories such as chips, TFT-LCD panels, adapters, cases and fighting game enhancers. Its Wii accessories line comprised less than 10 percent of its business in 2007.

Most China makers remain focused on OEM business for this line. There are a few who offer their own labels, such as Shenzhen YuYuan, whose business is half OEM and half under the YuYuan brand.

More companies are foreseen to join the estimated 30 Wii accessory makers in China in 2008. Wii accessory manufacturing is centered in Guangdong province, which hosts close to 80 percent of makers in the line. Among the province’s cities, Shenzhen has the most makers. The supply chain of electronic components and plastic cases is well-established there, making it easy for suppliers to source raw materials and locally developed modules.

Makers can usually release a new product in a month. Some suppliers can fast-track the release to a week, if the need arises.

Shenzhen Ke Yuan’s sales director Lony Deng said that it is easy for the company to manufacture Wii accessories because its factory has its own plastic module machine. The company also has good relationships with domestic module developers.

Shenzhen YuYuan has 200 workers in its factory. It has a monthly capacity of about 500,000 Wii accessories.

Shenzhen Ezjoy employs about 200 workers in its factory. It can produce up to 300,000 Wii accessories monthly. It exports to North America, Europe and Japan.

Shinedata employs 400 workers at its factory, which has four production lines and a capacity to produce up to 600,000 Wii accessories monthly.

Shenzhen Ke Yuan has a monthly capacity of about 300,000 Wii accessories. Its factory has three production lines and about 150 employees.