In China, it's the glitzy cities that get the attention — Shanghai in particular is the city that garners the most attention in scholarship (and frequently in the press). I was somewhat relieved to see that this is not confined merely to China specialists, but game industry watcher types as well — the most recent 'China Angle' column at Gamasutra looks at games outside of the publicized hotspots, where large portions of the user bases are found. Giant Interactive, developer of Zhengtu Online, recently purchased a stake in one of China's largest social networking sites, in an attempt to grow their market. But that's not the only way companies are trying to acquire ever greater number of players, oh no:

Giant Interactive made a significant splash in China’s online gaming industry by pushing their game Zhengtu Online into the channel of second and third tier cities the way fast moving consumer goods company pushed food and nutritional products, using sales representatives at net cafes and shopping centers.

Their strategy was not surprising since Giant Interactive started as a nutritional supplement company prior to be a gaming powerhouse.

With the investment in 51.com, Giant will now continue to grow both their games and their reach deeper into hundreds and thousands of China’s urban centers that most Americans have never heard of.

Oh, Giant — definitely one of my favorite companies to keep tabs on. I'm looking forward to seeing the directions the Chinese market takes over the next decade; maybe we'll even see WoW toppled.

The China Angle: Reaching Into The Heartland Of China [Gamasutra]

[CEO Shi Yuzhu] chose the second- and third-tier cities as the battlefield. "Most gaming firms focus on major cities, but in fact second- and third-tier cities are a gold mine," he says. "If you want to post posters in the Internet cafes in big cities, you will be charged (by the owners). But in smaller cities, it can be free and you receive a warm welcome from the owners."

In large cities consumers tend to play more games at home, while Internet cafes are the preferred sites for most in smaller cities and rural areas.

Shi now has a 2,500-strong marketing team, which regularly checks whether ZT Online's posters are posted on the walls of the Internet cafes across the country and sell prepaid cards to players to enable them to gain points required to play games. That is quite different from other companies' practices of promoting games mainly in cyberspace.

And how is Giant Interactive trying to attract more women to their stable of games?

He is also hiring a number of attractive female players to play in Internet cafes. "We are giving them virtual golden coins worth 6,000 yuan per year, which are equal to 500 yuan in the real world, to encourage them to play and stay in the games," he says.

His ultimate goal is to make the game more fun and lure more male players, especially first time gamers.

"In fact in China's cyberspace many male players are very willing to pay the bills for their female counterparts", he says.

It's an interesting look at a very interesting company. Time will tell if Giant can keep this momentum going.

Breaking the rules [China Daily via PlayNoEvil]

The company portrays itself as a traditional online game firm, however, it is fairly clear that they are stretching the boundaries of online gaming and gambling ....

And, from the look of things, it is very clear that they are planning to continue pushing the limits of gambling. After all, who else is going to give you 500 Yuan (almost $70) in incentives to play? I certainly recognize this marketing pattern from the spam that floods my email box from various Internet casinos ....

The other "fun" trend is marketing pyramid schemes built around gaming. The one I've been seeing a bit of lately is uVme.

Ah, growing pains. I doubt we'll be seeing the gambling craze spreading, but one never knows.

Giant Online - You know its online gambling when.... [PlayNoEvil]

The main Southern Weekly article on ZT Online follows a gamer as she first becomes interested in the game, through her rise to power, and her eventual disillusionment with the money-sink it had become.

Woven into the narrative are descriptions of the often shockingly brazen tactics ZT Online uses to soak the "RMB gamers" who would rather spend money than grind out levels. The picture resolves into that of an online casino dressed in the trappings of an adventure game, and Shi Yuzhu [the brain behind ZT] ends up looking a lot like a shady used-car salesman.

It's a really, really great (if somewhat lengthy) article from a number of perspectives - it's one of the better mainstream media articles I've read on gaming, though not without its flaws. But as the PNE commentary points out, the fascinating thing is how it turns a lot of ideas about 'good' MMORPGs upside down ... and is reaping major rewards. From the sounds of it, I doubt we'll be seeing it Stateside, but one never knows.

Gamble your life away in ZT Online [Danwei via PlayNoEvil]

WANG Yuchuan, a former employee of a network company, was yesterday sentenced to one and a half years in prison and fined 50,000 yuan (US$6,757) for copyright infringement of a popular online game.

Wang stole the computer code of the game "Zhengtu" and sold the code to some buyers for 130,000 yuan. Two of his buyers, Wang Yan and Tang Shuai, sold the code again for 200,000 yuan later and were caught by police when trading. They were sentenced to one year and 10 months' jail respectively.

Steve at PlayNoEvil opines that "In general, this is good news. This is a clear case of protecting intellectual property in China." Too bad they only seem concerned with domestic issues - I suppose you have to start somewhere?

Worker jailed for stealing game [Shanghai Daily via PlayNoEvil]

"Game mission can teach gamers Chinese philosophy," said Tan Teck Seng, CEO of iG-Interactive Sdn Bhd, adding that the quizzes in the game will also be localized for the local gamers.

Chinese online games have developed speedily in the recent 10 years, which are benefit from the hardworking personnel of science and technology and the support of the government, said Gu Hongxing, first secretary and head, cultural office of the Chinese Embassy in Malaysia.

I love poorly translated press releases. The interesting part about all of this is that Chinese developers are really ramping up international efforts - it was a big week for several companies. I wonder when this stuff will hit the US, if ever?

Chinese online game to be launched in Malaysia [Xinhua]