Located in the country’s Guangdong province and off the coast of gambling paradise Macau, Hengqin Island will play host to a 15,000 seat arena designed specifically for competitive video game events.
China represents a huge opportunity for U.S. publishers, which are quickly exploring ways to monetize the country’s growing appetite for gaming. Meanwhile, some of the biggest firms in China are eyeing the U.S. market.
But as the euphoria wears off and the waiting period for the country’s government to take action (if, indeed, it plans to) sets in, analysts say the potential impact on major U.S. video game publishers will likely be minimal.
With wage increases in China and Vietnam (as well as escalating shipping costs), outsourcing to the Far East isn’t as economically feasible as it once was, a situation that is forcing many companies to look closer to home. At the same time, retirees looking to make the most of their savings are considering relocation south of the border.
Chesapeake Bay Candle never thought twice about offshoring its manufacturing when the company started 17 years ago. To make the product it wanted, each candle had to be handmade, and there was no cost effective way to do that in the United States.
Four years ago, however, the company reversed that thinking, centering its operations domestically, and betting that as the global economy changes, the move will actually save it money.
Roughly 150 employees of a Foxconn Technology plant in Wuhan, China threatened mass suicide earlier this month in protest of job transfers. No workers followed through with the threat, though 45 did ultimately decide to quit, reports The New York Times.