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.

Sunday, March 3, 2013

Why is NTES's gaming fee increase a mystery to Wall Street, part 7


One can find my last NTES related post here:

I just don't get it. It is pretty amazing how inefficient Wall Street can be. One would think when the number 1 and number 3 properties of a company increase their user fee by 50%, for the 1st time in 10 years, it would have been picked up by at least some Wall Street analysts.

This increase could increase the revenue from those games by up 50%, without incurring any expense, one would think this will be a big news.

It is not like Netease is trying to hide it. The following is the official announcement from the official game web site:
For XYQ:
For XY2:
For XY3:

Since the policy change on 2/10/2013, it had been the number 1 topics in many of the most popular gamer forum in China.

Yet, I don't see this news in English. Nor do I see any mention of this by any Wall Street analysts.

The following is the latest Wall Street article on Netease. It is a Bloomberg article on how much Wall Street analysts likes Netease. But there is no mention of this gaming fee increase.

Some analysts talked about how excited they are that they think Netease will grow their net income by 14% this year. Really? Netease just increased (potentially) the income from their number 1 and number 3 properties by 50%, and those Wall Street analysts think 14% is impressive!

I wonder how long will it take before some analysts who get paid to follow Netease will actually go to visit Netease's official game web site and discover this policy.

The following is the link to the Bloomberg article:

In my next blog post, I will provide an updated player number statistics for XYQ and XY2.

end

1 comment:

Brad Herrmann said...

Great info! Thanks for putting this together. I'm looking forward to your next post, where we can see the new server stats and match up player loss vs fee increase to see the overall revenue impact.

Thanks again!

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