Blizzard will develop new business models or mergers and acquisitions game companies in Asia

Game giant Blizzard is preparing funds and teams to develop the next generation of new game business models, according to sources close to Blizzard China. It is revealed that the business model is completely different from Blizzard's existing game business model, and will focus on Asian markets. Blizzard does not rule out the acquisition of Asian gaming companies and studios for this purpose.

The news was seen by outsiders as a poor financial performance of blizzard actively seeking to break the performance of the Bureau. It is understood that just last week, Blizzard just released the fourth quarter of December 31, 2010 report, the report showed that Blizzard achieved net revenue in the quarter of 1.427 billion U.S. dollars, the year-on-year decline of 8%, net loss of 233 million U.S. dollars.

U.S. investment banks were not surprised by the news after analyzing blizzard earnings. Blizzard has nearly 90% revenue generated from its online games, known as the Game of Warcraft. Much of World of Warcraft proceeds from Europe and the US, not Asia. It is necessary to develop a new business model in order to increase the share of the market in Asia, which is nearly billions of dollars in output.

Blizzard currently has the main network (selling Cdkey authorization) and point card mode (time charge) of the two business models. One of the online games "World of Warcraft" to take the point card charging mode, "Warcraft" and other competitive games to take the war network model. At present, the mainstream of European market is still card charging mode, but South Korea, China and other Asian market center of gravity has already turned to prop charging mode, blizzard in the Asian market follow slightly backward.

In the view of some analysts, investing in the next-generation business model is a huge opportunity for blizzard, and Blizzard should probably make a similar decision earlier. Before the rapid growth of the Asian Games market, is facing a series of growth bottlenecks: The age of game population decline, innovation is weak, prop charging model exists short board. In particular, the latter, a large number of game companies in the past few years in the rush to "get the money", fully exposed the prop charging model "unfair" flaw, so that it generally lost credibility at the player level.

There has also been recent news that Blizzard was also assessing the acquisition of Blizzard US video game developer Take-two, which was not officially confirmed, to change its earnings.