Second Post - Breaking The Ground
Chinese online game operator The9 has announced ADS offering. This IPO is estimated to bring the capitalization of the company up to around 330 million dollars.
Is distribution really so profitable that people will pay 13-15 dollars per share, just to get a grip of one among many. There are big companies with good titles and more economic muscle... Seems awfully difficult market to compete in. Granted, The9 operates good games and might be able to gain players for them.
What about the cost structure? World of Warcraft can be quite expensive game for the consumers. They might prefer something more local and cheaper.
I would put my money on Chinese mobile game developer or operator. Those games are cheap to make, quick to localize and easy to deliver. Mobile phones will be in just about every Chinese pocket (talking about people who live in cities) and they are just waiting to be personalized.
You can go and check The9 by yourself, if you want.
Is distribution really so profitable that people will pay 13-15 dollars per share, just to get a grip of one among many. There are big companies with good titles and more economic muscle... Seems awfully difficult market to compete in. Granted, The9 operates good games and might be able to gain players for them.
What about the cost structure? World of Warcraft can be quite expensive game for the consumers. They might prefer something more local and cheaper.
I would put my money on Chinese mobile game developer or operator. Those games are cheap to make, quick to localize and easy to deliver. Mobile phones will be in just about every Chinese pocket (talking about people who live in cities) and they are just waiting to be personalized.
You can go and check The9 by yourself, if you want.
posted by Jarkko at 10:23
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