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.
Showing posts with label Netease. Show all posts
Showing posts with label Netease. Show all posts

Friday, November 1, 2013

China's Mobile Internet Messaging (IM) War, part 11: the battle is heating up

This is part 11 in this series. One can find the previous part (part 10) in this series here:
part 10 here

I am still keeping track of the weekly download statistics. The pattern I observed in part 10 is still valid. That is Netease/CHA (China Telecom)'s YiChat is still growing like crazy. Alibaba's LaiWang is a very strong grower. Sina's WeMeet is dying in front of our eyes.

In addition, there are two other new players that are getting into this space. One is from Shanda and another from a big retailer. But so far those two new players are not catching any traction at all.

Both Alibaba's LaiWang and Netease's YiChat had/will have major announcement. But first, some users statistics:


From the following article:

Netease's YiChat had already accumulated more than 30 million users. In addition, its user base are increased by 200k per day. Of all users accounts, 28% of them are daily Active account users. Thus, about 30*0.28 = 8.4 million users are using YiChat every day.

Considering YiChat starts operation on 8/19/2013, it is able to accomplish this feat in less than 2.5 months. I had never heard of any social networking product that are able to grow this fast out of the starting gate, anywhere.

But Alibaba is going all out for its LaiWang product. From the following article:

Alibaba is offering all LaiWang users of free mobile data traffic cost for users in 4 major provinces. This trial will last 2 months for now. Alibaba would also likely to expand this free service.

Not to be outdone, Netease had just announced that it will have a major announcement on 11/8/2013. From the following articles:

The detail is still a little unclear. But it looks like CHA/Netease will expand the free data service offer for its YiChat users not just to all CHA users, but all users in China. It will also covers users from China Unicom (CHU) and China Mobile (CHL) users.

Of course, the cost of these free service is so large that is so far beyond what Netease can afford. Most likely, Netease is just alone for a free ride. Either the cost will come from CHA (China Telecom) or China Unicom and China Mobile will become partners of YiChat. We will find out more details on 11/8/2013.


end


Wednesday, October 9, 2013

China's Mobile Internet Messaging (IM) War, part 10: YiChat vs. LaiWang vs. WeMeet


This is part 10 in this series. One can find the previous part in this series here:

This is going to be a quick update on the status of three new players in China's Mobile Internet Messaging war.

Netease and China Telecom's love child, YiChat had been out for about 6 to 7 weeks now.

NTES and CHA had spent a lot of money on marketing the first day of the launch. But interestingly, I don't see any more marketing on any of the popular web sites after the first day. But YiChat had been in the news non-stop because it is a product of a monopolistic like state own company and a highly competitive private company. Thus, YiChat had been getting free marketing after the first day of launch.

At about the same time, Sina come out with their new product, WeMeet. Except for the first week, I don't see any more marketing. There is also not that many news articles about WeMeet.

Not to be out done, China's internet and E-commerce giant, Alibaba, also comes out with its own mobile internet messaging product, called LaiWang. Alibaba had done very aggressive marketing on all of China popular web sites for LaiWang.

I want to know how are these three products doing. In part 8 of this series of articles, I had used Baidu searches to get a measure of how popular these services are.

But I don't think Baidu search directly translates to the popularity of these products (there is an indirect relationship, but I want a more direct and more correct measurement).

I believe the total numbers of downloads shall be a more correct measurement. To do that, I used some of the most popular download sites. Unfortunately, some of the most popular download site don't provide download statistics.

I used 4 of the most popular download sites that do provide download statistics. Taken all together, they represents about 1/4 to 1/5 of total downloads. These four sites are:

91 Android


360 ZhuShou


AppChina



WanDouJia


Adding the total download per week, I got the total number of weekly downloads from the four sites. The respective numbers for Netease's YiChat, Sina's WeMeet, and Alibaba's LaiWang is as follows:
Weekly Download Total
YiChat
WeMeet
LaiWang
8/30/2013
1660572
27888

9/6/2013
572497
2668

9/13/2013
653619
1823

9/20/2013
465007
1154

9/27/2013
613850
727
146928
10/4/2013
965452
505
71941

Again, the number here is not the absolute total number of downloads. It probably represents about 1/4 or 1/5 of total downloads. But the error will be the same for all products I tracked. Thus, it might not be great in predicting absolute number, but it shall be very good in comparison of different products as well as tracking the growth of a single product at different time.

From the above table, YiChat had a great beginning. It begins tapers about one month after the official launch. But after that, it had caught a second wind and is starting to grow again.

Sina's WeMeet had a horrible start. It is dying even faster. It is suffering a horrendous death.

Alibaba's LaiWang starts strong. Please don't compare to the start of Netease's YiChat. I had never seen a product starts so strong as I saw YiChat. It will be absolutely unfair for any product to compare to the original start of YiChat. None of the three major social networking products (Sina's Weibo, Tencent's QQ, and Tencent's WeChat) had a start anywhere close to the start of YiChat.

If we don't compare to YiChat, Alibaba's LaiWang actually had a very strong start. At this point, it is still way too early to say how good LaiWang will do. But I do know that Alibaba is sparing no expanse in promoting this product.

At this point, it appears that YiChat will be, at a minimal, at second place to Tencent's WeChat in China mobile internet messaging application. Again, as I mentioned multiple times previously, the best thing for YiChat is not to be second place in mobile IM application. It is different enough that it could create a brand new product that combine internet, mobile, off-line home phone, SMS (Short Messaging Service), and VOIP (Voice Over IP) into one giant social network.

For Sina's WeMeet and Alibaba's LaiWang, they have to compete in the mobile IM. They don't have  off-line telephone, SMS, and VOIP capability, nor will they ever have (unless one of China's 3 telecom becomes their sugar daddy). They have to compete with WeChat head-on. Of the two, WeMeet is dying in front of our eyes. But LaiWang has a very promising start.

I will provide another update on this in another couple of months.

end.




Tuesday, March 20, 2007

Netease – TX2 – Interesting Interview

Some times one comes across an interview that says much about how a company is ran. The more I follow Netease, the more it reminds me of a startup in Silicon Valley in the 80’s.

Netease maintains two web sites for TX2, one is called official TX2 site and the other is called TX2 Users site. The following article is on the TX2 users sites:

http://tx2.163.com/2007/3/19/693_173898.html

It is an interview with the Netease’s product manager. I will translate part of the interview that I think is interesting. Note that the sentence inside the parenthesis is my thoughts.

……

Question: Did the open beta meet your expectation?

Answer: Better than what I expected. The users came out with many game-playing issues that weren’t expected by the game designers. We are busying correcting these issues. On the other hand, THE NUMBER OF PLAYERS WERE NOT AS MANY AS WE EXPECTED.

(Now we know why Netease hasn’t announced the PCU yet. On the other hand, unlike most Chinese game companies, Netease is not shy about announcing her shortcomings to the players).

……

Question: What are some of the major features that will be added to the game?

Answer: In the short term, gang war; in the medium term, school and money tree; in the long term, commerce group, dungeons, and battleground, will be added.

(As can be seen, there are a lot of PvP features. Some of them are especially designed for large scale gang warfare. In addition, TX2 also will have quests in the form of dungeons.)

…….They discuss many game-playing features here………….

Question: Finally, could you say something to the players?

Answer: Ah, let me say something I really mean. If you believe TX2 will get better and better, please stay. But if you believe TX2 is a trash, please leave.

(Ah.., certainly talks like a geek who hasn’t had a day of class in marketing. Personally, I think it is a breath of fresh air. But how will it play in China is anyone's guess!)

Thursday, March 8, 2007

Netease – XY3 – Ahead of schedule

During the 4Q Earning Conference call, Netease management said that XY3 will start internal close beta in 2Q2007. But from the following link (from Netease’s official website), XY3 development team will complete the rough draft of a complete XY3 game that allows for the internal close beta by the middle of March. Internal close beta means having company employees as the beta tester. In addition, they are starting to write the first expansion pact of XY3 in parallel. Don’t ask me why they are doing the expansion pact already, I am just the translator.

Link: http://gamebase.163.com/200702/frame_13.html

Clearly, XY3 is progressing nicely and is ahead of schedule.

Tuesday, March 6, 2007

Netease – TX2 – My prediction

Today is March 6th, 2007. It is almost a week since the start of open beta. Netease hasn’t annouced any users statistics yet. Nor has she done much marketing promotion. All she had done is to put up some ads on gaming websites.

But overall, it pretty much matched my expectation.

I don’t necessarily agree with Netease’s marketing strategy, but I think I understand why they are doing certain things at a certain way.

Self developed games have many advantages over import games. But it does have one disadvantage, it won’t be as stable as the import games at the beginning. For all the import games, they had been operated and in commercial operation for months if not for years in their home market. By the time the import games had arrived in China, all the bugs had been stamped out, the game plays had been balanced and the servers had been stabilized.

TX2 had been in development for 3 and a half year (almost unheard of in China) and in closed beta for 1 year, the game developers had done all they could. But there are something they can’t do until open beta.

When it comes down to it, by the time of open beta, Netease’s games will look like a half completed game while import games would look like well-polished games.

There goes the rationales for the difference in marketing these different types of games. For import games, open beta doesn’t serve as open beta in conventional sense. It’s more like free trial time. Like giving candies to little kids until the kids get addicted. Therefore, the major marketing is done before open beta to build momentum.

But for Netease’s game, they can’t do that. The game is only partially completed. They did all they could. But they still have to go through the “real” open beta development period.

For Netease, the real marketing push comes a couple of weeks before the game goes to commercial operation. That is when Netease feels most of the bugs had been removed and the game is somewhat polished.

For TX2, it is a statement game. Just like Quake in the US, only a limited number of users can play. Only players with recently purchased computers can play TX2. Netease is coming out with patches so more users with less powerful PC can play. But they can only do so much.

For import games, the time of open beta is extremely important to get users interested. The 1 year mark is also important for the import games because it determine whether the game has legs.

For TX2, the first 6 months after commercial operation is extremely important. If it can get by the first 6 months and still have a sizable player with new players coming in, it will be a successful game. The reason is after 6 months, after TX2 is on a level-playing field with the import games in terms of game readiness, the advantage of a self-developed game will start to show. If TX2 can survive the first 6 months, then Netease will have the advantage over imported games of been able to provide quicker patches, more frequent and more relevant activities, and faster reaction time to users complaints/requests. In addition, as time goes by, the number of potential users with acceptable computers will increase. The potential pools of users that can play TX2 will increase with time.

Given the above reasoning, we can construct a schedule that assumes a successful TX2:

3/1/07: Open beta. PCU = 60k.

Rationale: Very little marketing done so far. Most people had no idea what is TX2.

3/4/07: First Sunday. PCU = 70k.

Rationale: Shall be a little increase. But this is the Lantern Festival weekend, and most existing games have major promotions going on. Most players will stick with whatever games they are playing and TX2 is not going to get much increase this weekend.

3/7/07: Major competitor goes open beta.

Rationale: NCTY’s Guild War went to open beta today. I predict they will have a PCU=150k to 200k because of the aggressive marketing of NCTY. Besides, Guild War seems to be a pretty good game.

3/10/07: Second Sunday. PCU = 60k

Rationale: Because of the competition from Guild War, there will be pressures.

3/31/07: After 1 month. PCU = 100k

Rationale: At this point, I predict the game is ready. I predict this is when the major marketing push starts.

4/8/07: Announce date of Commercial Operation. PCU = 140k

Rationale: PCU will start to crash after Netease announce the date of commercial operation. Many players who were only in for the free ride will start to leave.

4/15/07: Commercial Operation: PCU = 50k

Rationale: Free play is over. But I hope the major marketing includes enough promotion that many players gets to play for free for the next few months.

10/14/07: 6 months after Commercial Operation: PCU = 70k

Rationale: By this time, the major marketing push had ended. If at this point, TX2 is still growing and have a stable user base, they are home free.

4/15/09: 2 years after commercial operation: PCU = 300k

Rationale: 6 months is the do or die point. If TX2 passed 6 months without losing vast majority of the users, they will have another block buster on their hand.

The above is my prediction. I will check back from time to time to see how accurate I am.

Monday, March 5, 2007

Netease - XYQ - Accelerated Growth

It is now confirmed that we have a new record for XYQ. Again, what is surprising is not the new record, but the size of the new record.

Link: http://xyq.163.com/2007/3/5/99_171422.html

The following is the record for the last year:

Date _______ PCU ____ % from last record ___ Comments
3/4/2007 ___ 1500k ___ 11% _____________ 2007 Lantern Festival
12/25/2006 _ 1335k ___ 0.4%
12/24/2006 _ 1330k ___ 1.5%
5/28/2006 __ 1310k ___ 1.6%
4/23/2006 __ 1289k ___ 4.1%
3/26/2006 __ 1236k ___ 4.7%
3/5/2006 ___ 1180k ___ 0.4%
2/26/2006 __ 1175k ___ 3%
2/24/2006 __ 1140k ___ 8% _______________ 2006 Lantern Festival
1/1/2006 ___ 1053k

The reason for the new record is because of the Lantern Festival and the new expansion pact that just came out (see my previous post for more details).

last year's great 8% increase powered XYQ to multiple record and a great run in the first half of last year. This year's 11% increase has the potential to do the same.

The stage is set, (and we need a few more smaller new records in the next 2 to 3 months for confirmation), to show that we haven't see the peak of XYQ yet!

I think we are going to have a great 6 months just due to XYQ alone! And considering that we will also have DaTang 2, FF2, TX2, and XY3 coming up, it will be a great 2007 for Netease investors.

Sunday, March 4, 2007

Netease - TX2 - FF2 - Game status

On 3/1/2007, TX2 went into open beta while FF with new game engine went to closed beta, so far both games seem to go fine.

On TX2, Netease came out with a new patch that seems to improve the game code. Games are much more playable for even average PCs. A big complaint involves little support for newbies. But it is something that can be easily cured by adding some simple programming codes. Or just write some tutorial on the game web site.

Again, I don't think Netease had really start the real marketing campaign for TX2 yet. But so far, it seems the game is pretty stable and there is no fundamental or catastrophic programming bugs. As an ex-programmer, it seems all the complaints by the players can be easily solved by modify little computer code fragments.

For Fly for Fun (FF) with the expansion pact (the one with the brand new game engine), I am pleasantly surprised by the stability of the new game engine.

The game engine is the most difficult part of a PC game (by far). There were 5 patches that came out in the last 3 days that attempt to improve the efficiency of the programming code. According to a poll on Netease's user forum, 15% of players feels the game is still too much of a resource hog, 66% feels improvement but still wish Netease can further optimize the code, 15% feels big improvement and is happy, and 3% feels extremely happy.

This is basically the first stage of the closed beta, the performance of the new engine is definitely beyond all expectation.

Netease - XYQ - New record

This is now 2am US central time on March 4, Sunday (4pm China time). It is pretty clear we are going to have another PCU record for XYQ today.

It is not surprising that XYQ will have a record on China's Lantern Festival (XYQ had a new record last year on the same festival), but the scale of the new record is surprising.

Netease hadn't announced the new record yet, but from the server reading, it not just break the record, but smash the record. It is surprising that for a somewhat old game like XYQ, it still can do this in such a convincing way. It looks like XYQ still have a long way to go.

XY2, on the other hand, is slowing fading. It will be perfect timing when XY3 come on board later this year. Looks like Netease timed XY3 just right. Not too fast (XY2 is not too old) and not too slow (people completely forgot the game).

For TX2, Netease had not announced the player statistics yet. But my guess is PCU of 60k on the first date of open beta (3/1) and 70k today (3/4). It will be interesting to see what the official PCU will be.

Wednesday, February 28, 2007

Netease - TX2 - Adds new servers

As predicted in my earlier post this morning, 4 servers are ridiculously insufficient.

Within minutes after 12pm (China time), the 4 servers are flooded. Within 1 hour, NTES adds 5 new servers. That makes it to a total of 9 servers.

Link:
http://tx2.163.com/2007/3/1/413_164807.html

By 3:30pm (China time), another 7 is added. That makes it to a total of 16 servers.

Link:
http://tx2.163.com/2007/3/1/413_171356.html

It is still day time in China and most of the players are either in school or at work. That means NTES will add more new servers tonight (that will be tomorrow morning US time). I also predict another round of adding servers this weekend.

Netease - FF2 - Expansion pact close beta

3/1/2007 is a big date for Netease. It is not just open beta for TX2, it is also an important date for FF2 (Fly for Fun 2).

Again, FF2 is a licensed Korean game that will be Netease's first free-to-play game. It may not be as important as TX2 or XY3 in term of revenue. But it is very important to indicate if Netease can compete in the area of Free-to-play games.

Fly for Fun had been in open beta for 2 years now. Netease has allows the players to play for free for a whopping 2 years.

But FF2 will be a completely new game. Every part of the game will be rewritten by Netease, even the game engine is written from the ground up. But before they come out with FF2, Netease will come out with a major expansion pact for FF.

But this expansion pact is no ordinary expansion pact. It will be powered by the brand new game engine that will eventually power FF2.

Therefore, this expansion pact will need to go through the close beta -> open beta cycle.

Tomorrow (3/1/2007), FF with expansion pact will go into closed beta. More than 50k players had signed up to participate in the closed beta. Will be interesting to see if the players like it.

From the behavior of this expansion pact, we can find out how stable is the underlining game engine. If the game engine is stable, FF2 will have a good probability of being a good game.

link:
http://ff.163.com/news/2007/02/1-3-20070228140000.html

Netease – TX2 – Open beta preview

It is about 3am China time, 9 hours before the official open beta starts. After following TX2 for more than 6 months, here is my prediction for this game.

I think this is a great game. I think it is going to be a game that will be as popular as WOW (World of Warcraft) in China. But I don’t think it will get there right away. It will probably have moderate success at the beginning and start to build up from there.

The reason for my optimism:
1). Excellent 3D game. Right now, there is only one other Chinese made 3D game that has graphics as good as TX2, that is Perfect World. But Perfect World is not a real success (for many reasons that won’t affect TX2). Multiple Korean games have great graphics, but they suffer multiple ill effects that usually associated with Korean games.

2). Feels like Ancient China. Perfect World feels more like foreign games. People can tolerate the wizards, knights, witches, etc. when there is no choice out there. But TX2 give them the choice to play ancient chinese mythology rather than ancient England mythology.

3). NCTY drops the ball. The only game that can stop TX2 on its track is the WOW expansion pact, the Burning Crusade. But according to NCTY’s conference call, it won’t be out until end of 2Q. That means TX2 has 3 to 4 months of head start to gather momentum.

4). Unique game play. TX2 has everything that XY2 and XYQ has. But it will also have something that is unique that even WOW and other foreign games doesn’t. It will have PvP (player vs. player) on the massive scale in the form of castle warfare. Other games has PvP, but never close to the scale that TX2 would like to be (can they do it, see below)

5). The Netease way. When it comes down to it, Chinese like the way XY2 and XYQ plays. They like the economic system, the marriage system, the friend system, the tribe system, the market-trading system, the promotion system, … TX2 will have all of that.

However, there are two unknowns that can possibly stop TX2:


1). Game program refinement: The game engine for TX2 is the Big World from Australia and this game is the first 3d game made by NTES. There are two ways this can be a problem:
(a). Unstable server. They may not be able to write the server software to keep the server stable under stress. They did a stress test on the servers about 1 month ago. It is clear that they are satisfy with the result that they goes to open beta soon afterward. This doesn’t seem like a problem any more.
(b). Resource hog on users computer. This does seem like a problem. TX2 takes more resource than WOW on users computers. A lot of users are not able to turn on many eye-candies to play the game without the game turn stuttering. But there are two things that works in favor of TX2. First, it is 2 years after WOW was out and there are a lot more newer computers in China out there that can play TX2 satisfactorially. Second, Netease is still working on this and making progress on every revision.

From what I gather, a computer that has a spec of AMD 1.7G, 1G memory, and nVidia MX440 can probably gets to play TX2 satisfactorialy (about 15-20 fps) with many graphic options turn off. That is about a 4 year old budget computer (with memory upgrade from 250M to 1G). A 2 years old main stream PC with a video card of ATI 800GTO or nVidia 6600 (with memory upgrade from 500M to 1G) can pretty much play TX2 with all the options on and fps greater than 30.

A game like that won’t have any problem if it is in the US. But I don’t think average Chinese player has computers as powerful as average US player. Still, I don’t think this is the deal stopper.

2). Is there a paradigm shift in the market? This is the one thousand dollars question. Can any new game that is not free-to-play pay-for-item thrive? There are conflicting evidence that can go either ways. Paying games like WOW, XY2, and XYQ are still growing. That means pay-to-play games can still thrive.

On the other hand, in the last 2 years, no NEW pay-to-play games are successful. That seems to suggest that the gaming market in China had complete changed to the free-to-play model.

Is there a paradigm shift in the Chinese market? I don’t know and NTES doesn’t know. But we will find out soon.

NTES - TX2 - Only 4 servers

I had been keeping track of the progress of TX2 and I think it is going to be a great game.

But some times, I do have reservations about their marketing (or lack of).

They are going to start out with 4 servers for the 3/1 open beta.

So far, they haven't really even started their marketing champaign yet (just on some game websites or QQ).

I know they will overflow and they will add new servers after half an hour. But only 4 to start out with? To provide some perspective, XYQ has about 460 servers.

Link:
http://tx2.163.com/2007/2/28/413_158252.html

Tuesday, February 27, 2007

NTES - TX2 - Video

Stock market in US and China crashed today. But I am not really worried. I don't think this is a long term phenomenon.

I also don't think much about that disastrous conference call. I don't think Netease ever had a good conference call. So, nothing new there.

I think the success of TX2 has much more effect than any conference call or any short term general market correction.

TX2 is going on real open beta on 3/1/2007. Let's see what TX2 is really like:

Official trailer (right click and save):
http://czdltx2.163.com/tx2/tx2video.wmv

This trailer is 6 months old, the custume and graphics had changed completely since this trailer was out. Today is the day before open beta and NTES hadn't had a more recent trailer out yet. This speaks volume about how little they cared about marketing!

Anyway, it is just an official trailer and it is pretty. But it really doesn't offer much insight to us investors.

However, there are many fan made video. When players play the game, they captured the the game-play real time. Then they made a production out of these captured video.

These fan made video provides great insights to us investors because they show us the game in action.

Note that not all player have great computers, some computer don't play with all the eye-candies on. This creates video degradation. The act of video capture also create video degradation. The composition of the final video from different pieces also create video quality degradation. After the video is made, it is compressed so it can be of a small size to be downloaded. This creates video degradation.

In a nutshell, just remember these video don't represent the quality of the real TX2.

The fan-made movies (right click and save):

Righteous and Evil: http://www.dwcq3.com/down/TX2_video.avi

Tide: http://www.t4y.cn/shiping/chaoliu.rar

LinYiu Village:
http://www.riju8.com/天下2-翎羽山庄.wmv

YunLu (Castle in the Sky): http://xyqu.com/video/yunlu_final1.wmv

Have fun evaluating the game.

4th Q Conference Call Highlight

In a word, great quarter and horrible conference call. It just seems like the company management really doesn't want to be there.

The highlight:

- Effective tax rate for 2006 is 10%, expect to be in the low teens for 2007.

Online Game:

- 4Q06: XY2: 28% XYQ: 70% DT: 2%

- XY3 is going to be a pay-to-play game, the same price

- Anti-addiction system will affect all companies. Don’t see big impact.

Portal:

- weakness in 4Q is because NTES reduced the number of ads on its front page. They will increase the price per ad, but haven’t start it yet.

- Developing search engine. Open beta in 2Q. Search engine is developed with a junior partner (NTES 75% and partner has 25%)

- Cancel the travel, health, and culture channel. Looking for partners to run these channels. So to concentrate on the news and entertainment channel.

- The three big area is Email, Blog, and Contents. Feels like the technology is much better than their peers. Concentrate on integration.

- Video is part of the content. No specific plan right now.

Friday, February 23, 2007

Netease - A great article on NTES

There is a great article on the inside thinking of NTES. It is based on an interview with the vice president of Netease on 1/23/2007.

The link:
http://news.17173.com/content/2007-01-29/20070129110516290,1.shtml

Summary:

- Both XY2 and XYQ hit a rough spot after the Japanese flag incident. But they are growing again. XYQ hits an all time high on December while XY2 hit an all time high on October.

- In 2007, XY3 will be replacing XY2. XY3 will have a completely new engine and graphics. All of XY2’s player statistics will be ported to XY3.

- Haven’t start the sequel to XYQ yet. But XYQ will have an expansion pact in January.

- Doing fundamental research on mobile games. But no plan in sight to have an actual game out.

- DaTang2 will be free-to-play. Has not made a decision on whether Fly for Fun 2 will use free-to-play model yet, but mostly like will also.

- Has no plan to export game.

- Feels the core value of the management is to provide employee a fun working environment.

- Doesn’t believe that player will play Netease’s game because it is made by Netease. Believe players play Netease’s game because of the games themselves.

- Talked about the popular ZhengTu game. Says Netease is trying to learn from ZhengTu in how to marketing the game and how to promote the game. Feels by seeing how ZhengTu doing its on-line game, Netease can learn a lot from it.

- Give prop to Shanda for completely change their games to free-to-play models.

- TX2 will probably in commercial operation on March 2007.

Netease - TX2 - Open Beta on 3/1/2007

TX2 will have open beta on 3/1/2007. The company called it the 2nd stage of open beta. But it is actually just regular open beta.

the link: http://tx2.163.com/2007/2/5/413_155967.html

It probably has something to do with the recent NCTY's announcement that WOW's expansion pact, the Burning Crusade, is coming to China.

I don't think the open beta will last more than 1 month. My best guess is commercial operation on late March.

I don't NCTY can modify the WOW expansion pact fast enough. Thus, it will probably give TX2 a few months to gather momentum.

Netease - DT - New Expansion Pact

DaTang is the disappointing new game from Netease. Its new expansion pact is going to be released in a period of about 4 weeks. It is going to be break up into two parts and each part is going to be released in two weeks.

The first part of the new pact is released on 1/16/2007. It is to be released on two servers only. If no major bugs were detected, it will be released to the rest of the servers next week. The second parts of the expansion pact will be released next.

The link that provides the details of the nine major functions on the first part of the expansion pact:
http://dt.163.com/news/2007/01/2-9-20070116235843.html

The second part of the pact comes out over two weeks, on 2/6/2007, and 2/13/2007, the info:
http://dt.163.com/news/2007/02/2-9-20070206205319.html
http://dt.163.com/news/2007/02/2-9-20070213175404.html

XYQ's new expansion pact out on 1/23/2007

XYQ's new expansion pact is coming out slowly on 1/23/07. They are probably coming out in several stages. The first stage of the pact went out on 1/23.

Info on the new expansion pact:
http://xyq.163.com/2007/1/22/418_143062.html

With the major expansion pact from both XY2 and XYQ out, (DaTang's also coming out with expansion), we are probably going to see much increased user numbers in the next 3 months.

Then after that we will probably see launch of TX2 (a game that will have the potential to eventually rival XY2).

After that, two free-to-play games (FF3 and another game based on DaTang engine) shall be out after TX2.

Right after that, XY3 shall be out.

2007 is going to be an extremely busy year for Netease. At least two major games (TX2 and XY3) will be out as well as 2 free-to-play games. Those are just the minimal amount of games that we know so far. Most likely there will be more.

2007 is going to be a very fruitful year for Netease investors.

Thursday, February 22, 2007

XY2's last expansion pact

On 12/21/2006, XY2 released a new expansion pact. See the following link:

http://xy2.163.com/news/2006/12/5-6-20061221095837.html

This is going to be the last major expansion pact before XY3 is ready.

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