Analysts say Giants should give up game development platform

Beijing Time October 22 Evening News, MainFirst Securities Hong Kong Limited today published an analysis of the giant Network (hereinafter referred to as "giant") target share price from 7.4 U.S. dollars to 7.3 U.S. dollars.　　The following is the full report: We visited the giant's Shanghai headquarters last week to investigate the giant's upcoming games: Journey 2 (self-developed), King 3 of Kings (authorized) and the "Fairy Road" (purchase).　　-Giants will launch a variety of games in the next two quarters.　　-We believe that the performance of King 3 and the fairy is likely to be better than expected, but "Journey 2" may be less than expected. -Tencent a game called "the World of Ming" will be the "Blood Legend" and "Journey" poses a challenge, which makes us worried. We think the "journey" will be more affected, because the game does not like the "Blood legend" to complete the distinction between high-end players and low-end players.　　Feedback from within the industry shows that the world of Ming is a very good game. -We think it's hard to put high-end players and low-end players in the same environment for games with a high average revenue per user (ARPU). This is why the giant launched a number of versions of the journey: The Journey of Nostalgia version, "Green Journey", "Journey 2" and "Journey time Version" reasons. and "Blood legend" since 2006 has given up the low-end players.　　From a revenue point of view, online gaming companies are not worth taking measures to retain low-end players. -From a larger perspective, we think giants should give up game development while working to be a platform.　　The quality of licensing games and buying games has proven our point of view. We cut the giant's target share price from $7.4 to $7.3 to reflect the lower gross margin and higher marketing costs for the next few quarters. We will increase the giant's 2010-year revenue forecast by 3%, and maintain a "neutral" (Neutral) rating for giant stocks. (D-Gold)