Posts Tagged ‘the9’

The9 scores OpenFeint license agreement

Wednesday, December 22nd, 2010

Chinese online game operator and developer The9 has recently announced a software license agreement with OpenFeint Inc. The terms of the deal center around a five-year license to use the mobile social gaming network software across the Chinese market, and was made via a wholly owned subsidiary.

Unless you’ve been camped out under a rock for the past few years, you’ll recognize the importance of OpenFeint arriving in China. Arguably the most successful mobile social gaming network software for iOS devices and Android devices, OpenFeint’s developer SDK can be quickly and easily integrated into any iOS and/or Android based game. With China’s massive gaming market, this cooperation has mutually beneficial all over it. OpenFeint currently has over 13,000 registered game developers using the SDK and integrating it into their games. The result? OpenFeint counts over 50 million registered users with approximately 4,000 games in the App Store and Google Market.

“We are very pleased to introduce OpenFeint’s software to Chinese mobile game developers and users. As the world’s leading social mobile gaming network software, OpenFeint’s software combines both social networking and gaming features that have great potential for development in China. We believe that our mobile social gaming network in China can deliver to our users, fantastic contents and an overall exhilarating gaming experience,” comments The9 CEO Jun Zhu.

Along with their subsidiaries and partners, The9 plans on building and operating a mobile social gaming network built on mobile internet across China. Listed amongst the cooperating partners are mobile communication carries, a factor that’s sure to expedite the process.

An interesting sidenote, you’ll remember that Japan based DeNA has a significant investment in OpenFeint, and has been on a buying spree beyond compare over the course of 2010. They’ve recently hinted at a European strategic purchase, but working their way into the Chinese market via OpenFeint could prove quite valuable for the company. If they can’t crack the market under their own name, there’s certainly no better option than to license out technology that you’ve got a significant investment in.

 

The 9 reports a 94% drop in revenues post WoW

Thursday, November 26th, 2009

Shanghai, China based MMO operator and developer The 9, formerly holders of the Chinese license to operate World of Warcraft recently reported a whopping 94 percent drop in third quarter revenues YOY.

intro_03Third quarter revenues for the 9 came in at $3.7 million, a 91 percent drop from from second quarter revenues, $42.2 million. At the same time, only one year prior, The 9 was posting a revenue take of $59.8 million. If there’s any question not only about Activision/Blizzard’s dominance with World of Warcraft, but also how much revenue the Chinese market is generating, not only with WoW, but online gaming in general – this report from The 9 should put things into perspective.

Having lost out on the regional contract back in June to competitor NetEase, The 9 executives are still optimistic about future prospects, as their games catalogue contains a healthy mix of decent titles including FIFA Online 2, Soul of the Ultimate Nation, and Granado Espada. Since the loss of World of Warcraft, this catalogue has seen a 55 percent increase in activity in Q3 when compared to the numbers one year prior.

The 9 is quick to point out that these titles attracted around 3.4 million active users in Q3, up from 3.2 million active users in Q2. The leader in this increase has been Soul of the Ultimate Nation. This increase in activity was spurred on by a new content upgrade, as well as a theft-proof security system. FIFA Online 2 and Atlantica both saw increases in activity, as well as a web based card game Jiu Zhou Zhan Ji.

“Although our revenue loss cannot be recovered within a short period of time, we are glad to see that our research and development capabilities continue to strengthen as a result of our investments,” said The9′s CEO and chairman Jun Zhu. “Our proprietary games have shown substantive progress and a strong potential to be well received by Chinese game players.”

 

EA’s Battlefield Heroes will be a phenomenon

Tuesday, August 19th, 2008

The numbers don’t lie.  The free to play, microtransaction based gaming business model works.  It not only works, but it’s making lots and lots of people lots and lots of money.  The North American market has been less than speedy in accepting this form of play.

Nexon entered the market first, and brought titles like Kart Rider and Maplestory to an audience that had never experienced this form of play.  So when big guns EA went out on the ledge and said, “Hey…we’re going to build a top notch game, able to hold it’s own at any shooter table, oh…and it’ll be free to play,” the reception was a bit lukewarm.  Granted, this has to do with the title not actually being ‘out’ on the market yet, but as momentum begins to grow, I’ve personally noticed more and more ‘w00t!  can’t wait to get my hands on this!’ comments springing up across the myriad of sites I cover each day.

Now I’m not about to put myself in the same category as David Perry, but it seems that we’re thinking the same thing on this one.  Perry recently sat down with GamesIndustry.biz and let the fan flag fly.  “I think Battlefield Heroes is going to be a huge hit, it’s going to be a bit of a phenomenon.  I have incredible faith that EA is going to pull this off.”  Perry continued, believing that most people are underestimating the project.   “For them to actually make that announcement was huge, I thought that was one of the biggest statements that EA has made in years and it just went over people’s heads.”

Building upon this, Perry noted that EA is still at heart, a retail company.  The make games, produce them, put them in pretty boxes and ship them off to retailers to them put their tax on, and pass along to the consumer.  Announcing a free-to-play, download it if you like game is not a great relationship builder with said retail outlets.  EA has already invested in the Korean market and The9 in China, but keeping it under the radar.  Battlefield Heroes is in fact, NOT EA’s first free-to-play, but rather the one that most North Americans have heard of.  EA built FIFA Online as a free MMO.  A smart move to test the international waters, as most North Americans favor their football involving a brown pigskin and not the round black and white ball the rest of the world sees as a football.

When asked about the free-to-play model itself, Perry said that the model actually allows for the potential of even more revenue generated compared to the traditional model.  “It’s a whole different world you enter when you get into free-to-play, it’s like the industry that we’ve all been missing and the second thing we’ve been missing is the idea of letting people pay what they want,” he explained.

“I’ve made so many games and we never, ever had the idea that people would pay more than the price of the game for the game, no one would pay over $60 if it’s a $60 game. On our 2Moons game, you’ve got people that spend $3,000 happily, and if we had more stuff for them to buy, they would buy it.”

As a point of comparison, most retail games sell for around $60, while Acclaim’s free to play games average a $75 take/person/game.

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