China Joy:VRAR and game pipeline update

Event

§、 We attended China Joy 2016in Shanghai and hosted an expert conferencecall with Loonggame. VR took the spotlight at China Joy this year. We sampleda dozen VR hardware and game content, and felt that the gaming experiencewith most local offerings was not up to expectation. Top Chinese developersare looking abroad for VR tie-ups and are making attempts in VR gamedevelopment. Most industry participants expect VR will take off likely 1-2years later when pricing of VR gaming hardware comes down and userexperience improves. AR, on the other hand, is less explored among China’sgaming community given the tech hurdle and limitations on game genres.