Carville, Matalin enjoy role as Big Easy boosters


NEW ORLEANS (AP) — When Mary Matalin heard a baby cry during a Super Bowl news conference this week, she paused midsentence, peered in the direction of the fussing child and asked: "Is that my husband?"


Matalin, the noted Republican political pundit, isn't shy about making jokes at the expense of Democratic strategist James Carville, who went from being her professional counterpart to her partner in life when they were married — in New Orleans — two decades ago.


This week, though, and for much of the past few years, the famous political odd couple have been working in lockstep for a bipartisan cause — the resurgence of their adopted hometown.


Their passion for the Big Easy and its recovery from Hurricane Katrina was why Carville and Matalin were appointed co-chairs of New Orleans' Super Bowl host committee, positions that made them the face of the city's effort to prove it's ready to be back in the regular rotation for the NFL's biggest game.


"Their commitment to New Orleans and their rise to prominence here locally as citizens made them a natural choice," said Jay Cicero, president of the Greater New Orleans Sports Foundation, which handles the city's Super Bowl bids. "It's about promoting New Orleans, and their being in love with this city, they're the perfect co-chairs."


Carville, a Louisiana native, and Matalin moved from Washington, D.C., to historic "Uptown" New Orleans in the summer of 2008, a little less than three years after Katrina had laid waste to vast swaths of the city. There was not only heavy wind damage but flooding that surged through crumbling levees and at one point submerged about 80 percent of the city.


The couple had long loved New Orleans, and felt even more of a pull to set down roots here, with their two school-age daughters, at a time when the community was in need.


"The storm just weighed heavy," Carville said. "We were thinking about it. We'd been in Washington for a long time. The more that we thought about it, the more sense that it made. We just came down here (to look for a house) in late 2007 and said we're just going to do this and never looked back."


Matalin said she and Carville also wanted to raise their daughters in a place where people were willing to struggle to preserve a vibrant and unique culture.


"It's authentically creative, organically eccentric, bounded by beauty of all kinds," she said. "People pull for each other, people pull together. ... Seven years ago we were 15 feet under water. ... This is unparalleled what the people here did and that's what you want your kids to grow up with: Hope and a sense of place, resolve and perseverance."


Carville has been an avid sports fan all his life, and Matalin jokes that he now schedules his life around Saints and LSU football.


An LSU graduate, Carville has been a regular sight in Tiger Stadium in Baton Rouge, often wearing a purple and gold rugby-style shirt.


In New Orleans, he and Matalin have lent their names not just to the Super Bowl host committee, but to efforts to prevent the NBA's Hornets from leaving when the ownership situation was in flux.


"I was scared to death they would leave the city," said Carville of the Hornets, who were purchased by the NBA in December of 2010 when club founder George Shinn wanted to sell and struggled to find a local buyer. "We were starting to do better (as a community). It would have been a terrible story to lose an NBA franchise at that time."


Saints owner Tom Benson has since bought the NBA club and signed a long-term lease at New Orleans Arena, ending speculation about a possible move.


Carville and Matalin also have taken part in a range of environmental, educational, economic and cultural projects in the area. Matalin is on the board of the Water Institute of the Gulf, which aims to preserve fragile coastal wetlands that have been eroding, leaving south Louisiana ecosystems and communities increasingly vulnerable to destruction. They have supported the Institute of Politics at Loyola University and the New Orleans Jazz Orchestra.


Carville teaches a current events class at Tulane University and he looks forward to getting involved in the 200th anniversary of the Battle of New Orleans in 2015 and New Orleans' tercentennial celebrations in 2018, when the city also hopes to host its next Super Bowl, if the NFL sees fit.


Leading a Super Bowl host committee, the couple said, has similarities to running a major national political campaign, but takes even more work.


"This has been going on for three years and it's huge," Matalin said. "It's bigger, it's harder, it's more complex — even though it's cheaper."


The host committee spent about $13 million in private and public funds to put on this Super Bowl, and the payoff could be enormous in terms of providing a momentum boost to the metro area's growth, Carville said.


"For us — New Orleans — I think this is going to be much more than a football game Sunday," Carville said of the championship matchup between the Baltimore Ravens and San Francisco 49ers. "We'll know how we feel about it on Monday. It's a big event, it helps a lot of people, but I think we have a chance if it goes the way we hope it does, it'll go beyond economic impact. It'll go beyond who won the game. I think there's something significant that's coming to a point here in the city."


So there's a bit of anxiety involved, to go along with the long hours. But Carville and Matalin say they've loved having a role in what they see as New Orleans' renaissance.


"I always say I'm so humbled by everyone's gratitude," Matalin said. "We get up every day and say, 'Thank you, God. Thank you, God.' It's a blessing for us to be able to be here, to live here."


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Reality check needed on immigration?






STORY HIGHLIGHTS


  • Howard Kurtz: The mainstream media are rooting for immigration policy changes

  • Kurtz: Is enthusiasm causing the media to overestimate the prospects for reform?

  • He says the Republican House has been a graveyard for numerous Obama reforms

  • Kurtz: Illegal immigration still arouses visceral opposition among some Americans




Editor's note: Howard Kurtz is the host of CNN's "Reliable Sources" and is Newsweek's Washington bureau chief. He is also a contributor to the website Daily Download.


(CNN) -- The mainstream media -- you know who you are -- are rooting for immigration reform.


They like the idea of doing something to accommodate the country's 11 million undocumented immigrants, who, despite conservative rhetoric to the contrary, were never going to be banished.


They swoon over the kind of bipartisanship that brings together John McCain and Marco Rubio on the one hand and Barack Obama and Chuck Schumer on the other.



Howard Kurtz

Howard Kurtz



They believe the Republican Party needs to moderate its harsh rhetoric about immigrants -- if only to salvage its political future -- and are welcoming the GOP's new realism.


But is that enthusiasm causing media organizations to overestimate the prospects for reform?


Watch: Steve Kroft Plays Defense Over Hillary/Obama Lovefest on '60 Minutes'



Any bill still must pass the Republican House, which has been a graveyard for numerous Obama reforms. The Senate has always been a place where top lawmakers reach across the aisle more easily than in the polarized House, as was evident during the fiscal cliff debacle. And there are conservative groups determined to derail any path toward citizenship, which they view as amnesty.


It's not that journalists are acting as cheerleaders for the emerging plan. But when the media have qualms about an issue, they couch it as being "controversial" and "risky" (say, George W. Bush's plan to privatize Social Security).


Opinion: Immigrant - Can we trust Obama?






By contrast, look at the way the president's immigration speech in Las Vegas was covered:


The New York Times: "Seizing on a groundswell of support for rewriting the nation's immigration laws ..."


The Washington Post: "Obama added to momentum on Capitol Hill in favor of an overhaul of the nation's immigration laws ..."


We saw the same supportive approach when the Pentagon lifted a ban on women serving in front-line combat positions, which, despite some conservative opposition, was greeted with favorable features that largely depicted the move as long overdue.


Watch: Should N.Y. Times Have Censored Company Name Over the S-Word?


As with many perpetual Beltway disputes, the contours of a common-sense compromise on immigration have been clear for some time. The right wants tougher border enforcement and employer verification procedures. The left wants undocumented immigrants taken out of the "shadows," as Obama put it, and given a chance to become openly productive members of society.


The key are the tradeoffs. How long would a path to citizenship take? Are fines and back taxes required? How do we ensure that those who broke the law don't get an unfair advantage over legal applicants?


I don't argue with the standard political analysis that the moment may be ripe for immigration reform.


Watch: Media Seize on Emotional Moment of Gabby Giffords' Testimony


Mitt Romney, who talked about wanting immigrants to "self-deport," got clobbered among Hispanic voters. The GOP has lost the popular vote in five of the past six presidential elections. Sean Hannity, the Fox News commentator, says he has "evolved" on the issue, and he's not alone.


The conservative media may be a bellwether here. After Obama's Tuesday speech, Hannity's leadoff guest was Karl Rove, the former Bush lieutenant who favors the Senate compromise. And when Rubio, the Florida senator and son of Cuban immigrants, called in to Rush Limbaugh's show, the host -- while criticizing Obama -- told him, "What you are doing is admirable and noteworthy. You are recognizing reality."


Watch: BlackBerry 10: Is It a Hit or All Thumbs?


But illegal immigration remains a divisive subject that still arouses visceral opposition among some Americans. Capitol Hill is a place where partisan maneuvering can push the government to the brink of default. And as George W. Bush learned in his second term, hammering out a compromise on such a volatile issue is maddeningly elusive.


Perhaps the election changed the landscape and both parties will find a way to compromise. In the meantime, it might be wise to take the upbeat media coverage with a healthy dose of skepticism.


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Howard Kurtz.






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Appeals judges: Anti-paparazzi law appears legal






LOS ANGELES (AP) — An appeals panel says California’s anti-paparazzi statute appears to be constitutional based on a brief filed by prosecutors.


A preliminary statement by three judges in Los Angeles requires a judge who dismissed charges aimed at a paparazzo who authorities say was driving recklessly to review his order. The judge may stick to his ruling, which would trigger a full appeal, or he could schedule further arguments on the case against freelance photographer Paul Raef.






Raef was the first person charged under the new law after a high-speed chase involving Justin Bieber last year.


Superior Court Judge Thomas Rubinson dismissed two charges in November, ruling the law is too broad and is unconstitutional.


Raef’s attorney David S. Kestenbaum says he is asking Rubinson to stand by his ruling and allow a full appeal.


Entertainment News Headlines – Yahoo! News





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S.Africa’s PMI at 49.1 in January






JOHANNESBURG (Reuters) – South Africa‘s seasonally adjusted Purchasing Managers‘ Index (PMI) was at 49.1, below the key 50 mark that distinguishes contraction from expansion for the fifth straight month in January.


The employment component of the index fell to its lowest since the middle of 2011, signaling bleak prospects for job creation in manufacturing, a sector that contributes about 15 percent of GDP to Africa’s biggest economy.






Economy News Headlines – Yahoo! News





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Kraft Foods sues restaurant chain over Cracker Barrel product sales






(Reuters) – Kraft Foods (KRFT.O) has filed a lawsuit against casual dining chain Cracker Barrel Old Country Store Inc (CBRL) over its decision to begin selling certain Cracker Barrel branded products outside of its restaurants and stores, court documents show.


The food manufacturer wants a marketing license agreement between Cracker Barrel Old Country Store (CBOCS) and the John Morrell Food Group to be declared void because it violates its rights to the Cracker Barrel brand.






The November deal with John Morrell Food, a unit of Smithfield Foods (SFD), would see select Cracker Barrel branded products sold in new retail channels besides CBOCS’s restaurants, which Kraft said would encroach upon its market.


Kraft said in the court papers on Thursday that since 1954, the only Cracker Barrel brand products offered at grocery and similar stores have come exclusively from Kraft or have been licensed by Kraft and not from the restaurant chain.


Also, Kraft said CBOCS has never made “significant sales” of refrigerated foods such as meat products under the Cracker Barrel mark in any channel of trade, other than as items on their restaurant menus.


“The parties’ market separation that has existed for decades will be eliminated,” Kraft said in its suit asking the court to quash CBOCS’s license agreement with John Morrell Food.


CBOCS could not immediately be reached for comment by Reuters.


The case is: Kraft Foods Group Brands LLC vs Cracker Barrel Old Country Store Inc, Case No. 13-cv-00780, U.S. District Court, Northern District of Illinois.


(Reporting by Sakthi Prasad in Bangalore; Editing by Hans-Juergen Peters)


Yahoo! Finance – Personal Finance





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Stock index futures rise, focus on jobs data

LONDON (Reuters) - Stock index futures pointed to a higher open on Wall Street on Friday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 rising 0.4 to 0.5 percent.


U.S. job growth likely picked up modestly in January and the unemployment rate held steady, supporting views a sluggish economic recovery was on track despite a surprise contraction in the final three months of 2012.


Non-farm payrolls, due at 08.30 a.m. EST, are expected to have increased by 160,000 last month after rising 155,000 in December, according to a Reuters survey of economists. The jobless rate is expected to have held steady at 7.8 percent for a third straight month.


Exxon and Chevron, the two largest U.S. oil companies, are expected to post stronger quarterly results. Other major companies announcing results include Mattel and Merck & Co. .


Dell Inc is nearing an agreement to sell itself to a buyout consortium led by founder and Chief Executive Michael Dell and private equity firm Silver Lake Partners, possibly announcing a deal as soon as Monday, according to two people familiar with the matter.


Information services company Markit releases U.S. final Markit Manufacturing PMI for January at 1358 GMT. The index read 56.1 in preliminary (flash) January release.


MetLife Inc said it has agreed with Spain's BBVA to buy AFP Provida S.A., the largest private pension fund administrator in Chile, for about $2 billion in cash to expand its presence in emerging markets.


Thomson Reuters/University of Michigan Surveys of Consumers release final January consumer sentiment index at 145 GMT. Economists in a Reuters survey expect a reading of 71.5 compared with 71.3 in the preliminary January report.


Google has presented detailed proposals to allay concerns about its business practices, the EU antitrust regulator said on Friday, in a move which brings the company a step closer to resolving a two-year investigation.


The Institute for Supply Management releases its January manufacturing index at 1500 GMT. Economists in a Reuters survey expect a reading of 50.6, versus 50.2 in December.


The Commerce Department releases December construction spending data at 1500 GMT. Economists forecast a rise of 0.6 percent, compared with a 0.3 percent drop in November.


Bristol-Myers Squibb Co is seeking a buyer for some of its brands in Mexico and Brazil with any sale possibly bringing in as much as $750 million, the Wall Street Journal reported, citing people familiar with the matter.


Kraft Foods has filed a lawsuit against casual dining chain Cracker Barrel Old Country Store Inc over its decision to begin selling certain Cracker Barrel branded products outside of its restaurants and stores, court documents show.


Economic Cycle Research Institute releases its weekly index of economic activity for January 25 at 1530 GMT. In the prior week, the index read 130.6.


Asia's manufacturers face a challenging business climate in the coming months, a clutch of surveys suggested on Friday, with China's vast factory sector managing only a shallow rebound at the start of 2013 as feeble foreign demand dragged on sales.


The euro rose broadly and stocks extended gains on Friday after better-than-expected euro zone manufacturing data fuelled optimism that the worst of the region's debt crisis had passed.


U.S. stocks edged lower on Thursday on caution ahead of Friday's all-important jobs report, but the S&P 500 still posted its best monthly gain since October 2011.


The Dow Jones industrial average <.dji> was down 49.84 points, or 0.36 percent, at 13,860.58. The Standard & Poor's 500 Index <.spx> was down 3.85 points, or 0.26 percent, at 1,498.11. The Nasdaq Composite Index <.ixic> was down 0.18 points, or 0.01 percent, at 3,142.13.


(Reporting by Atul Prakash; Editing by John Stonestreet)



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2 NFL seasons since agreement, still no HGH tests


NEW ORLEANS (AP) — Count Baltimore Ravens defensive end Arthur Jones among those NFL players who want the league and the union to finally agree on a way to do blood testing for human growth hormone.


"I hope guys wouldn't be cheating. That's why you do all this extra work and extra training. Unfortunately, there are probably a few guys, a handful maybe, that are on it. It's unfortunate. It takes away from the sport," Jones said.


"It would be fair to do blood testing," Jones added. "Hopefully they figure it out."


When Jones and the Ravens face the San Francisco 49ers in the Super Bowl on Sunday, two complete seasons will have come and gone without a single HGH test being administered, even though the league and the NFL Players Association paved the way for it in the 10-year collective bargaining agreement they signed in August 2011.


Since then, the sides have haggled over various elements, primarily the union's insistence that it needs more information about the validity of a test that is used by Olympic sports and Major League Baseball. HGH is a banned performance-enhancing drug that is hard to detect and has been linked to health problems such as diabetes, cardiac dysfunction and arthritis.


"If there are guys using (HGH), there definitely needs to be action taken against it, and it needs to be out of (the sport)," Ravens backup quarterback Tyrod Taylor said. "I'm pretty sure it'll happen eventually."


At least two members of Congress want to make it happen sooner, rather than later.


House Oversight and Government Reform Committee chairman Darrell Issa, a California Republican, and ranking Democrat Elijah Cummings of Maryland wrote NFLPA head DeMaurice Smith this week to chastise the union for standing in the way of HGH testing and to warn that they might ask players to testify on Capitol Hill.


Smith is scheduled to hold his annual pre-Super Bowl news conference Thursday.


"We have cooperated and been helpful to the committee on all of their requests," NFLPA spokesman George Atallah said. "If this is something they feel strongly about, we will be happy to help them facilitate it."


Several players from the Super Bowl teams said they would be willing to talk to Congress about the issue, if asked.


"I have nothing to hide. I can't speak for anyone else in football, but I would have no problem going," said Kenny Wiggins, a 6-foot-6, 314-pound offensive lineman on San Francisco's practice squad.


But Wiggins added: "There's a lot more problems in the U.S. they should be worried about than HGH in the NFL."


That sentiment was echoed by former New York Giants offensive lineman Shaun O'Hara, who now works for the NFL Network.


"Do I think there is an HGH problem in the NFL? I don't think there is. Are there guys who are using it? I'm sure there are. But is it something Congress needs to worry about? No. We have enough educated people on both sides that can fully handle this. And if they can't, then they should be fired," said O'Hara, an NFLPA representative as a player. "I include the union in that, and I include the NFL. There is no reason we would need someone to help us facilitate this process."


Issa and Cummings apparently disagree.


In December, their committee held a hearing at which medical experts testified that the current HGH test is reliable and that the union's request for a new study is unnecessary. Neither the league nor union was invited to participate in that hearing; at the time, Issa and Cummings said they expected additional hearings.


"We are disappointed with the NFLPA's remarkable recalcitrance, which has prevented meaningful progress on this issue," they wrote in their recent letter to Smith. "We intend to take a more active role to determine whether the position you have taken — that HGH is not a serious concern and that the test for HGH is unreliable — is consistent with the beliefs of rank and file NFL players."


Atallah questioned that premise.


"To us, there is no distinction between players and the union. ... The reason we had HGH in our CBA is precisely because our players wanted us to start testing for it," Atallah said. "We are not being recalcitrant for recalcitrance sake. We are merely following the direction of our player leadership."


Wiggins and other players said no one can know for sure how much HGH use there is in the league until there is testing — but that it's important for the union's concerns about the test to be answered.


"The union decides what is best for the players," said Ravens nose tackle Ma'ake Kemoeatu, who said he would be willing to go to Capitol Hill.


"I feel like some guys are on HGH," said 49ers offensive lineman Anthony Davis, who would rather not speak to Congress. "I personally don't care if there is testing. It's something they have to live with, knowing they cheated, and if they get (outplayed) while they're on it, it's a hit on their pride."


___


Follow Howard Fendrich on Twitter at http://twitter.com/HowardFendrich


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BlackBerry must remember strengths






STORY HIGHLIGHTS


  • BlackBerry sales have slumped in the U.S. but is still strong in emerging markets

  • New models launched should remember why they are popular in developing world

  • In places like Brazil and South Africa, the 10 is the update to their current phone

  • in Sub-Saharan Africa there is expected to be 175 million new customers in the next 3 years




Watch Jim Clancy on CNN International's "The Brief" at 4p.m. ET GMT Friday.


(CNN) -- BlackBerry's loss of market share in the U.S. is the stuff of legends. Last fall, it was estimated only about 2% of American phone users were still carrying their BlackBerry mobile with its iconic keypad.


But consider this: sub-Saharan Africa is expected to add 175 million new mobile users in just the coming 3 years. That's according to the GSMA, which represents the world's mobile operators.


"Mobile has already revolutionized African society and yet demand still continues to grow by almost 50 percent a year," said Tom Phillips, Chief Government and Regulatory Affairs Officer, GSMA.


That could be good news indeed for BlackBerry. Research in Motion, the maker of BlackBerry, estimates it holds a 70% market share in countries like South Africa.


The company's new phones, announced this week, are not the ones some of its best customers in emerging markets would like to buy. They're too expensive. But Research in Motion -- which also this week changed its company name to BlackBerry -- is pledging some of its six new models will address that.


While millions in China, Europe and the U.S. have adopted Android or iOS smartphones with a vengeance, millions more users in emerging markets are enthused about what's in store for the new BlackBerry 10. It's the update for what many of them are already using.










They live in countries like Brazil, Malaysia, Nigeria, Kenya and South Africa. They have embraced the BlackBerry for a combination of factors that all point to the different way mobile devices are used.


Unlike their counterparts in Europe and America, the mobile in their pocket is more likely to be their primary link to the internet.


BlackBerry Messenger is the connection that allows these users unlimited conversations without paying charges for SMS data. While young, brand-conscious Chinese may be willing to part with several months' salary to buy the latest iPhone, African users are looking for more practical (and cheaper) connections.


What separates developed countries from their developing counterparts at street level can be summed up in a single word: infrastructure.


Isobel Coleman, senior fellow and Director of the Civil Society, Markets and Democracy Initiative at the Council on Foreign Relations, says mobile technology has proved it can bridge the gap where infrastructure is lacking.


"It's a culture, it's an economy, it's innovation, education, healthcare, it's all of these things," says Coleman.


You can take that to the bank. For many Africans, their cell phone account is the first bank account they've ever owned.


In emerging markets, mobile phone banking is growing because of the lack of infrastructure. Fewer bank branches often mean long distances to travel and long lines once you've arrived.


Africans are expected to transfer more than $200 billion per year or 18% of the continent's GDP by 2015.


Oh, and that keyboard. No matter where you are in the world, there will always be a demand for a keyboard that clicks. The company appears to understand that as BlackBerry 10 models come with both soft keypads and the traditional BlackBerry buttons.


I asked some of my Twitter followers to weigh in on the BlackBerry 10 roll out. While some said Android or Apple's iOS were in their future plans, many others expressed continued enthusiasm for the BlackBerry.


Soji, a pianist and teacher in Nigeria tweeted back "I'm falling in love with this BB. Cheaper to own."


From Kuala Lumpur, Amir wrote "I need a physical keyboard to type while also having a touch-screen for photos etc. Security factor also important."


Hans-Eric from South Africa reinforced the sentiments of many mobile users in emerging markets: "The cost of data is simply too high without it (BlackBerry.)"


The voices from emerging markets couldn't have been clearer. What they expect from BlackBerry 10 is a stronger, longer lasting battery, durability and continued low cost connectivity.


CFR's Coleman agrees that BlackBerry (and anyone else) trying to win and hold this mobile device sector has to understand how these devices are being used and give the customers what they want.


"Cheap. Rugged. Not too many bells and whistles. Practical."


There is little doubt smartphones are changing the way people use the internet, how they bank, shop and interact socially.


But it's worth keeping in perspective that in a world where there are now an estimated 1 billion smartphones, there are 5 billion feature phone users. That's a lot of upside growth potential for BlackBerry and all the other players out there.







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‘How I Met Your Mother’ gets final season – and reveals the mother






NEW YORK (TheWrap.com) – “How I Met Your Mother” will be back for a ninth and final season that will reveal – finally – who the mother is.


CBS and 20th Century Fox Television announced Wednesday that the series would be back for one final go-round with series regulars Josh Radnor, Jason Segel, Cobie Smulders, Neil Patrick Harris and Alyson Hannigan, as well as series creators Carter Bays and Craig Thomas.






For eight years, viewers have wondered about the identity of the titular mother – and she will finally be revealed in the final season.


“Through eight years, ‘How I Met Your Mother’ has mastered the art of leading-edge comedy, emotional water-cooler moments and pop culture catch phrases,” said Nina Tassler, president of CBS Entertainment. “We are excited for Carter, Craig, Pam Fryman and this amazing cast to tell the final chapter and reveal television’s most mysterious mother to some of TV’s most passionate fans.”


TV News Headlines – Yahoo! News





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If the Xbox Came to China, Would the Chinese Notice?







Twenty-four-year-old Zhu, a banker in southwestern China, took time Tuesday out of his busy schedule working for one of China’s leading banks and playing five to six hours of video games a week, to share his gaming ambitions. He loves the multiplayer online game World of Tanks—which has 45 million registered users worldwide—plays mostly alongside close friends, primarily uses his own laptop, and usually commands digital armored vehicles on weekends.


However, he wasn’t all that excited about rumors that the Chinese government might lift a ban on legal imports of video game consoles—a tidbit first attributed to an unnamed source in the state-run and sometimes unintentionally hilarious China Daily on Monday, and subsequently picked up by Reuters and other Western outlets. It’s not clear there’s anything to the chatter, as a second culture official denied the report to Reuters. Still, the news item did give an apparent next-day boost to the Tokyo-listed stock prices of Nintendo and Sony (SNE), which make the popular Wii and PlayStation game consoles (a rare instance of state-run Chinese media helping Japanese companies).






If the rumor were true, would it have much impact—is China home to millions of Xbox-deprived youth? Zhu says the ban hasn’t proven a huge impediment to him: It’s “not difficult to get a PlayStation Portable or Xbox in China. … I believe most of them are smuggled.”


His friend in Chengdu and fellow gamer, Deng, who is 24, works for a family business, plays six to seven hours per week, and favors the online game World of Warcraft (it has about 9 million global subscribers). He in fact already owns a Sony PlayStation—there’s “no problem purchasing it in China.” However, Deng adds, “I don’t really use it very often.” The reason is telling: “Unlike online games, PlayStations have no friends’ connections”—in other words, most of his friends don’t own them, and so they can’t play together simultaneously.


Gaming culture in China has evolved as something distinctly social. Maybe it’s seen as antisocial to outsiders—but among gamers, it’s clear that you play with friends, both side by side and remotely. (Zhu and Deng are often joined online by a hometown friend who now lives in Australia.) The current equipment they have—a computer with an Internet connection—works just fine, say Zhu and Deng. At present, they wouldn’t want to sacrifice connectivity for additional features.


The sale of actual video game consoles has been illegal in mainland China since 2000. The official reason is to shield youth from bad influences. Several industry analysts, however, suspect the real reason may in part be protectionist, as the leading makers of game consoles are Japanese and American companies: Nintendo (NTDOY), Sony, and Microsoft (MSFT).


The ban certainly hasn’t done much to stop the explosion of gaming culture in China, which has evolved to focus on multiplayer online gaming. The total revenue for online computer games has ballooned, according to data from Niko Partners, a California-based consultancy focused on the Asian video game market, from about $ 10 million in 2001 to $ 9.4 billion in 2012. Lisa Cosmas Hanson, the company’s founder and managing partner, estimates there are now 30 million to 40 million people in China who spend more then 22 hours a week playing video games—she classifies them as “hard-core gamers.” (Those who play more than 30 hours a week are labeled “super hard-core gamers.”) Roughly 70 percent of hard-core gamers are men. Many others, male and female, play games more casually, for instance, on mobile phones.


“The games that work better on computers become the most popular in China,” says Charlie Custer, editor of the Tech in Asia online news site. Consoles “don’t do the kinds of online games that Chinese gamers like the most: massively multiplayer online role-playing game, with thousands of people all playing the same game online at the same time.” These games generate revenue either through subscription models or, Custer explains, “based on in-game transactions—for example, the sale of special weapons or costume items.”


Even if it were legal to stock Xboxes in Chinese hypermarkets—and even if Chinese gaming tastes evolved to create a demand—Michael Pachter of the financial-services and investment firm Wedbush Securities says, “You still can’t make money with the current business model … because of piracy.” Typically, “game consoles are sold at low prices, or a loss, and the money is made on software sales.” But that requires a level of anti-piracy enforcement not present in China today. “I don’t know that Sony or Nintendo are ever going to make a large profit on games in China.”


Hanson says she speaks regularly with officials from the Ministry of Culture and the Ministry of Industry and Information Technology, which jointly oversee regulations pertinent to gaming in China, including the console import ban. Although rumors from time to time emerge that a change might be coming, she says, “Right now, I see no reason to suspect the ban will be lifted.”


Zhu and Deng aren’t holding their breath either. Besides, they have digital armies to command—alongside World of Tank’s 45 million other online users.



Larson is a Bloomberg Businessweek contributor.


Businessweek.com — Top News





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