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Friday, November 1, 2013
China's Mobile Internet Messaging (IM) War, part 11: the battle is heating up
Wednesday, October 9, 2013
China's Mobile Internet Messaging (IM) War, part 10: YiChat vs. LaiWang vs. WeMeet
Weekly Download Total
|
YiChat
|
WeMeet
|
LaiWang
|
8/30/2013
|
1660572
|
27888
|
|
9/6/2013
|
572497
|
2668
|
|
9/13/2013
|
653619
|
1823
|
|
9/20/2013
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465007
|
1154
|
|
9/27/2013
|
613850
|
727
|
146928
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10/4/2013
|
965452
|
505
|
71941
|
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
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
TX2 had been in development for 3 and a half year (almost unheard of in
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
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
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 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
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
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
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
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
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
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
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
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
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
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
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
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.