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.

Tuesday, April 2, 2013

China's MOBA battle, part 2: NTES will cooperate with Activision

Again, today, 4/2/2013, another potential game changing event occurs for NTES. At the point of this writing, there is still little movement on NTES's stock on light volume.

Today's news is regarding the upcoming MOBA gaming war in China. My first post is this area can be found here:

Like what I said in the last article, the next great gaming battle in China is not going to be over mobile games. The next great battle is going to be MOBA games. When I have some free time, I will write an article on what is MOBA games and how it differs from MMORPG games.

Today, NTES announced that it will cooperate with Activision (ATVI) to develop a MOBA platform in China. See the following news:

In the news, NTES obtained the right to operate Warcraft 3 and DOTA on this new MOBA platform from ATVI.

The first game on this platform will be NTES's own YXSG game. When I have more free time, I will write an article on YXSG.

NTES will also get other type of games such as shooting games, Music games, and Sports games to operate on this platform.

By receiving Activision's blessing on this platform, it really speak favorably that NTES is probably in the front row seat in obtaining the license to operate the upcoming Blizzard All-Star game.

I think within the next 1 or 2 years, there are most likely 1 to 2 true blockbusters and 2 or 3 other major games in the MOBA area. I think NTES just got its hands on 2 or 3 of them.

The biggest loser is probably Tencents.

Interestingly, in today two news, NTES is the bigget winner while Tencents is the biggest loser.


China's 3 Telecoms and NTES vs. Tencents, part 3. China Telecom to corporate with Netease against Tencents

Today there are two potential game changing events for NTES. Interestingly, NTES's stock price hardly moved (on light volume) even though NASDAQ is doing very well today. Wall Street can be so inefficient!

I will talk about the first significant event here. My last post on the war between China's 3 Telecoms (CHL, CHU, and CHA) and Tencents can be found here:

Today, it is all over China's news web site that there is a rumor that China Telecom (CHA) will cooperate with Netease (NTES) to coming out with a WeChat like product to counter Tencents. See the following article:

This is a great great news for NTES. NTES has no presence in WeChat like area. It could potentially be truly game changing for NTES.

China's 3 Telecoms are not just traditional monopoly. Think of them as Standard Oil with Department of Commerce combined. However, there are competition between the 3 telecoms.

They are state own industry. Even though there are competition between the 3 telecoms. But since they are all originally from monopoly, they still behave like one. They also produce inferior products.

I guess CHA realized its limitation and is going to invite NTES to form a 3rd party company to develop a product call "翼信" (Wing Letter?).

At this point, it is a rumor. But from all the web sites, it seems to be a highly reliable rumor. If this rumor is true, this can do so much for NTES. Through monopolistic behavior, it could eat into Tencent's WeChat. It give NTES's other products a direct way to mobile users (whether mobile users choose it or not). It also allow NTES access to 162.77 Millions China Telecom's home phone users.

At this point, NTES's presence is largely gaming. It has a very popular internet news portal that it is not really monetizing. If this become real, NTES will instantly become major player in two other areas: social media and mobile internet. It is truly game changing development for NTES.

When this rumor becomes real, I will provide a more detailed write up on this.



A test for now