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China's ZT Online moves away from RMT, still earns as much as WoW
We've mentioned the Chinese MMO Zhengtu Online (ZT Online) in the past. It's one of the most controversial MMOs in existence, largely due to its focus on RMT and the hardcore extremes its players go to in order to get ahead. ZT Online, developed by Giant Interactive, is very much a blending of a virtual casino and fantasy MMO; gaming security site PlayNoEvil once described ZT Online as "EVE Online meets Las Vegas." Not surprisingly, the title frequently makes headlines in China, and occasionally in the west for the legal issues which crop up in regards to ZT Online.PlayNoEvil reports, "Giant Interactive had been running the 'crack house' of free-to-play gaming with its (once? still?) immensely popular game ZT Online. In the third quarter, the company moved away from its heavy reliance on purchased items towards steadier playing." That is to say, they're cutting back on the extent to which the game, and its gear, is monetized. It's not often that an MMO developer or publisher assesses the situation and intentionally opts to earn less money, but in terms of ZT Online's longevity, Giant Interactive Chairman and CEO Yuzhu Shi believes this is the right way to expand the title's playerbase. Despite this shift in business model, average revenue per user dropped to roughly $41, suggesting they're still earning a great deal of money from the title, years into its life. Indeed, ZT Online is enjoying profits per-user revenue comparable to World of Warcraft in China, PlayNoEvil concludes.Clarification: Comparison between ZT Online and World of Warcraft revenues in China is on a per-user basis. Updated text in bold.
Hardcore gamer builds Chinese empire
In the months leading up to the Summer Olympics in Beijing, with world events being what they are, it's not often that foreigners residing in the mainland turn to China Daily's English pages for the news. This little gem is an exception, however. When you picture the man who's fast becoming a leading light in China's expanding online gaming industry, who do you see? Maybe you picture a slick twenty-something entrepreneur from Hong Kong, decked out in a $5000 suit and shuffling between calls on a few wafer-thin cell phones. Or do you envision a middle-aged bureaucrat turned businessman from Beijing, using his network of connections and riding the tide of interest in online games? Stereotypes aside, no matter how you picture Shi Yuzhu, that aforementioned 'leading light,' you're probably wrong. The 46-year-old CEO of Giant Interactive (NYSE: GA) is more outwardly eccentric than most would guess. Shi, who prefers tracksuits over 3-piece-suits, is reportedly the first CEO ever to ring the NYSE bell in anything but formal attire... much less athletic wear.
Investors sue game operator for stopping gold-farming
No, I'm not making this up. In October Giant Interactive Group Inc took action against gold farmers in their MMO, Zheng Tu Online (reportedly the most popular online game in China in 2006, with 1.3 million active subscribers). Giant changed the game-mechanics to prejudice against gold farmers, just one month before their IPO in November. Well, after kicking out all those gold farmers who were paying subscribers, concurrency figures fell, as did total registrations - and the investors are apparently cross with Giant for both not disclosing their action against the gold farmers, and using the registration figures for September (before the rules-change was made) in their IPO registration statement, instead of the October figures.
Gamasutra's "China Angle" reports on The9, Giant Interactive, NCsoft
To North American and European MMO players, China is more than just a different country; it's a different universe. But it's important to keep an at least one eye on the Chinese market. Gamasutra ran its latest "China Angle" column today. Here's what we learned this time. The9, the Chinese publisher of World of Warcraft, will be responsible for the Chinese version of EA's FIFA Online 2. The9 already operates the original FIFA Online in the PRC, and EA owns a 15% share in the company, so that's no surprise. Newer company Giant Interactive -- who are behind the highly profitable Zhengtu Online -- saw a $38.7 million profit in Q3 2007, and all 800 employees of the company were given actual, real-life gold coins in celebration. The company is also actually awarding stocks to some of its customers. Finally, Korean MMO supercompany NCsoft has selected a new partner company called Shandra to distribute their new title AION. NCsoft opted not to work with their old partner Sina this time. The decision to change may have been influenced by disappointing Chinese numbers for Lineage and Lineage II, two NCsoft titles which were brought to the Chinese market by Sina.
Zhengtu Online holds 1 million concurrent users
According to the Star Online, Zhengtu Online is one of only three MMOs whose userbase exceeds one million players at peak times, the other two being Journey to the West and, of course, World of Warcraft. It goes without saying that American companies would do well to do some research into the Asian markets to see what it is that they're doing over there to be so successful; it can't be a coincidence that 2 of the 3 top-played MMOs are Asian.Having said that, what, exactly is the appeal? Are these other two games simply the best of the breed, as WoW seems to be (die-hard EQ, Guild Wars, EVE Online fans can climb off your soapboxes right now; I'm just going by statistics here)? Are there congruences between the three? Similarities in gameplay? If either of the other two were to come over to these shores, would WoW suddenly find some serious competition? Have any of you played these games, O Faithful Readers? Leave a comment![Via the Star Online]
Giant Interactive breaks the fourth wall by issuing virtual stocks
In a strange bit of news from the far east, we've just learned that Giant Interactive, the Chinese game developer/publisher behind Zhengtu Online, will be doling out virtual shares of their stocks that will be redeemable for gold in-game, with the in-game value varying depending on the market value of their real-world stock at any given time. Giant Interactive officially goes public on the NYSE this Wednesday.We're still a bit confused by what they mean by issuing stock. Will shares be available for purchase with in-game gold or is it being handed out for free as some sort of PR stunt? If they're using in-game gold (or even real cash), is this an attempt to gain market capitalization? We know China's laws are bit a different than what we're used to, but is this sort of thing even legal? Does it even matter? It is a mystery!Either way, we'll find out soon enough. They'll be issuing the virtual in-game stocks from November 1 through the end of the year. Happy trading![Via Warcry]
Chinese MMO publishers hit the market
China's relationship with MMOs goes much deeper than just RMT scams. In his latest editorial on the Chinese game business for Gamasutra, Shang Koo gives an appraisal of the public offerings of NetDragon and Giant Interactive, two of the premier Chinese game publishers to emerge from the recent gaming boom in the East. Giant Interactive, which is set to premier on the New York Stock Exchange starting this Wednesday, is the publisher responsible for Zhengtu Online, the second-most popular game on the continent since it was released last year. NetDragon, which itself is set to appear on the Hong Kong stock exchange this Friday, developed Eudemons Online and is working with Ubisoft on the upcoming Heroes of Might and Magic.Koo looks at the ways that game sales are affected by the differences in the developer/publisher relationship in China, and forecasts gloomy days ahead for companies trying to license their titles in the enormous Chinese game market, which today is largely dominated by home-grown titles.
