Chinese online game market operating in loss


When many of us think about MMOs, we think about companies who rake more money than we could dream about. Enough money to put together a scale model of Paris made out of 20 dollar bills.

Yet the truth is that many of these companies are operating in loss, as a recent article published in the Beijing Times has shown. Over 70% of Chinese online game companies are spending more than they are earning, while only a few notable names, like The9, the operators of World of Warcraft in China, stand to even make a profit.

Many games spend more in development and marketing costs than they stand to make in monthly subscriptions, leading to these problems occurring in many companies in the market. Analysts say that for every 10 online games made, only one stands to be a profitable venture.

For the full report on this, check out the article over at TradingMarkets.com.
This article was originally published on Massively.