The Rise of the East Asian Gaming Industry: A Value-Added Chain Among the East Asian Game Companies During 2000–2010

Abstract

From a historical perspective, this paper examines how these Asian game companies developed during the period 2000–2010. This research attempts to discern the relationships among the East Asian game companies when they become both game buyers and providers. Based on the model of the global value chain, suggested by Gereffi and others (2005), the results show that, first, the popularity of online games in the intra-Asian market is based on a collaborative relationship, while Korean and Chinese produced games are successfully operated in other markets. Second, the online game business became segmented in East Asia when game companies, in different markets, with their own advantages, were able to play different roles in order to add value to the modular form of the global value chain. Third, the value chains are not evolving along a single trajectory, if economic interdependence among game suppliers and buyers are further examined.