About this Blog

The purpose of this blog is for my personal use. It serves as my personal diary as I investigate Chinese internet/gaming companies for investment purpose. If you have any comments or disagreement, please give me feedbacks.

Wednesday, June 4, 2008

Another new game for Netease

My last post on XY3 can be found in the following:


No, this post is not about XY3.

Back in February, during the 4th quarter 2007 earning conference call, NTES management talked about another version of XY3, except that this version is free-to-play. The stock analysts in the conference call don’t seem very interested.

In May, during the 1st quarter 2008 earning conference call, the analysts don’t even bother to ask about this version of the game.

Well, I think wall street is under-estimating the importance of this new development.

First of all, I had always believed that it won’t be another version of an existing game. I think NTES will make it into a brand new game.

I am right. It will be a new game. The following are two articles. The first article is written by the developers of XY2 talking about there is minimal relationship between XY2 and this new game.


The second article is written by the developers of XY3 talking about there is minimal relationship between XY3 and this new game.


I predict NTES will treat this game as a new game. Just like the difference between XY2 and XY3. Even though they shared similar name, they are distinctively different games. There are two completely separate game developers. They have different schedules and their features are different. When NTES make advertisement, it never put both game in the same spot. It is either a banner ad for XY2 or a banner ad for XY3, never together.

I believe this new game will be the same.

In February, NTES manager talked about commercial operation during the second half of this year for this new game. I have no doubt the game developers would have no trouble making the deadline. But for marketing and scheduling reason, I think it would probably be some time next year.

On June 6th this year, TX2 will start to operate (or do them?). In addition, DT2 and FF3 would probably also going to start operation in the second half of this year. On top of that, there are talks of revamping the existing DT game later this year.

All of NTES’s new development will be ready in the second half of this year. For scheduling reasons and avoiding self-competition, I think NTES will delay one or two of these games into next year.

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