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, May 27, 2009

NTES to operate WOW starting at end of June

One can find my previous article on this subject here:
http://chinese-net-gaming-stock.blogspot.com/2009/04/transfer-of-wow-to-ntes.html

There are quite a few recent developments regards this subject; I will go through them here.

First, there are reports of mass migration of Chinese WOW players to Taiwan. One can see the following link:
http://tech.sina.com.cn/i/2009-05-26/08123124170.shtml

I heard some analysts thought that it is bad news for NTES. Do any of them even play games besides doing finance?

The reason some Chinese players play WOW in Taiwan is because Taiwan already has the new expansion pact. Let’s take an average Chinese WOW player. He played for 2 years and had achieved level 100 in WOW. There is temptation for him to play in Taiwan to get accessed to the new expansion pact. But there is zero reason for him to stay after China has the new expansion pact.

He is not going to re-do the last two years for him to get back to level 100. All his friends are in China. If anything, this is good for NTES. It means these players are not playing other games (such as SNDA’s Aion). These players are going to be back to China the second NTES get the new expansion pact for WOW.

Another story is that NCTY had filed two court cases against Blizzard. The two cases are going to be heard in courts in Shanghai on 6/18 and 7/8. See the following for more details:
http://tech.sina.com.cn/i/2009-05-26/17563126614.shtml

This is potentially bad news for NTES. It will not benefit NCTY in any way, but it is going to do it anyway.

This is potentially bad news. But for two reasons, I don’t think this is going to be a big deal. First, the cases have no merit. NCTY had a contract with Blizzard. The contract expired and Blizzard has the right to pick another company.

But the most important reason these two cases are not going to amount to much is who is NTES’s CEO. In case people don’t know, NTES’s CEO is also a powerful politician. He is a representative in National People’s Congress. In the United States, we call them House Representatives or Senators.

To see how powerful he is, in the following article, he browbeats the minister of Culture of Guandong when the minister questions the addictive nature of PC games:
http://www.yezizhu.com/pa/htmldata/8/4282/4892/5496/2008_01/153790_1.html

If he can do that to a department head, do you think a little court judge will dare to do anything to him?

Finally, the CEO of Netease and CEO of Blizzard published an open letter to Chinese WOW players today:
http://tech.sina.com.cn/i/2009-05-28/01573131130.shtml

In the above open letter, it said that the first server group for WOW will open at the end of June. All WOW servers will start to operate a few weeks after that. All servers are brand new and of the latest and best variety.

Some Wall Street analysts had predicted that WOW will restart in August or September. Now we are going to be a full two months ahead of estimated schedule.

After this article, I am going to talk about two new potential blockbusters in China. I hope I can write a player review of SNDA’s AION. Then I will write about the next major hit for NTES that could eventually be more significant than WOW. Yes, I am talking about the new FF.

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