G-commerce in East Asia

Abstract

Online games are viewed as the killer application service of electronic commerce, and it arouses the question for businesses and government as how to develop the online game market. This exploratory paper examines the causes behind the exponential growth of online games in East Asia. The results show that South Korea and Taiwan are leading all others in PC-based online gaming, because of their easy and low-priced broadband access. Japan, on the other side of the spectrum, has leaned toward mobile games, as 44.9 percent of Japanese use the mobile Internet and play wireless games on their palm-sized gadgets.This paper begins with observations on the online game market in these countries, respectively. It then asserts two developmental paths of online games: web-based PC games and mobile games. The author also identifies three structural factors that contribute to online game development, namely: (1) the substitution effects between fixed-line and mobile communications, (2) easy access to Internet cafés, and (3) the substitution effects between console and PC games. The analysis prepares researchers to answer the questions of whether or not could this growth be replicated elsewhere, and which developmental model will be absorbed. The findings show that North American countries have a greater likelihood to expand the market of PC-based online games due to their structural resemblance to South Korea and Taiwan. The European countries as exemplified by the United Kingdom on the other hand may opt for the wireless game model. Undoubtedly, the information infrastructure is a determinant in the growth of online games, and policy measures from the government may help the presence of a well-established infrastructure.