Student VIP Service  Sign in   Join now    
Quick Web Site:www.study666.com
Search by School Name     
  Home > Living In China 

Top 10 Online Games in China

1       Fantasy Westward Journey       
2       Zhengtu Zhengtu
3       World of Warcraft      

4       Wen Dao GYYX
5       Mo Yu   TQ Entertainment
6       Westward Journey Online II    

7       Shaiya  Optisp
8       Mir II  Shanda (SNDA)
9       SUN     The9 (NCTY)
10      Yulgang CDC Corp. (CHINA)

1. Seven of the top 10 games generate revenues from the "Free-to-Play,
Pay-for-Virtual-Items" model. This trend bodes well for Shanda (SNDA)
and CDC Corp (CHINA), two pioneers of this business model, and will
continue to pressure NetEase (NTES) and The9 (NCTY), whose games
generate revenues from selling play-time.

2. Six of the top 10 games are operated by U.S.-listed Chinese
companies (CHINA, NCTY, NTES, SNDA). This shows that capital markets
like the industry, and operating in this industry does require a lot
of funding. Why is this industry attractive? A short answer:
scalability and profitability - three of the 10 most profitable U.S.-
listed Chinese companies are online gaming companies.

3. Shanda, the No.1 Chinese online games operator based on 1Q07
revenues, only holds the No.7 spot in this ranking. Is this a bad
sign? We don't think so. Actually this demonstrates that Shanda is no
longer overly dependent on any single game, and its revenues are very
diversified. This reduces the "hit-or-miss" risk which has been
investors' major concern on online gaming stocks. From this
perspective, Shanda may be the safest investment among all the Chinese
online gaming companies.