The Dark Souls of Internationalization : Video Game Developers Enter the Chinese Market

This thesis analyzes how the institutional environment of the Chinese market affects market entry by foreign PC video game developers. The thesis utilizes a qualitative, multiple case study of five independent PC video game developers from around the world. The results of the thesis finds that despite China’s strict rules regarding video game publishing by foreign developers, culture and language are stronger influences on market entry strategies than Chinese regulations for the PC platform. This is due to the prevalent use of Steam, not only by foreign developers, but also their Chinese partners who publish the game to bypass the approval process mandated by the State Administration of Press and Publication (SAPP). The study also finds that, despite being in a leveraged market position due to regulations, Chinese publishers provide host of services for the developer partners for a revenue share deemed within industry standards. Additionally, localization strategies are discussed by each of the cases and this thesis finds that, while a basic translation can have success in the Chinese market, utilizing native Chinese speakers has a significant impact on a game's success, regardless of the professional level of the translation. Finally, despite the notoriety of piracy in China, developers expressed indifference to the practice, however, several methods have been identified to help mitigate the activity