Dialogue Grand Tan: a coping strategy for declining performance

9th morning, Shanda Game chairman and CEO Tan, in response to the second quarter of the profit decline trend and media dialogue, put forward the force of the "Valley of the Dragon", with Cntv and other companies to deal with a number of countermeasures. The following is a transcript of tan and media dialogues: Q: Are you satisfied with the results of today's grand announcement? Could you tell me about the operation of the "Dragon Valley", which was opened in July?　　What is the expectation of the third quarter's performance? Tan: The upgrading of Shanda products, the need for product innovation. We have a game like the legendary world, it has been 10 years, but the operation is very stable, there are a group of loyal users.　　Also hope that through this adjustment, so that our products more younger, I hope that more new products including new types of products, can gradually become the mainstream of Shanda game product line. So the product line of All Star was released earlier this year, and the "Valley of the Dragon" was the first product to be launched in this series, and it is now performing beyond our expectations.　　Then there will be new products out, including "Crazy Warrior" and many other products, hope that after our continuous testing to improve, but also to achieve good results. "The Valley of Dragons" has been quite successful so far.　　Income, first of all, it is a large number of users, suitable for all age groups to participate, the gender ratio is also very balanced, is a very healthy game, its income is also gradually rising, from the game commercialization process, I believe it will bring us a greater contribution to the Q4. Q: The recent NetEase "Wrath of the Lich King" Open, you will not worry about the grand impact?　　There are also insiders said "wrath of the Lich King" will help NetEase beyond grand, how do you think?　　Tan: First of all, we still welcome the market has excellent products, product update version appears, I believe in addition to users, other manufacturers also help, because it will help the entire market to expand the user base. In fact, "The Valley of the Dragon" and "Wrath of the Lich King" type is not the same, "The Valley of the Dragon" is a Q version of the game, but also the action as the core and leading, so in fact, our 2D game, overall look will not be too much impact.　　Overall, we still adhere to provide users with quality products, improve our operating brand service level, research and development strength, or in accordance with our established goals to go, this is what we should adhere to. Q: We have seen a decline in the report of the grand just released, which makes me think of many people said the grand main game "legend" in a recession, you do not agree with this statement?　　Just now you mentioned that the product began to be younger, including "The Valley of the Dragon" performance is also good, that this year's grand games will probably be different? Tan: We still think that legend is a mature game, not an aging game, very stable, and has the core users for 6, 7 years, they are loyal to the game. At the same time we are constantly improving services to provide new content to them, they will continue to play, they also have friends, established relationships, to attract new users, we hope to continuously provide excellentQuality service. And the grand new product line, we insist on keeping pace with the times, and constantly provide users with their products. "Valley of the Dragon" is the forerunner, leader and leader of action game, it makes our product type more diverse. We will further improve the strengths of different areas, excellent products.　　We believe that we should constantly analyze and forecast the diversity of users ' needs and analyze the changes of their needs.　　(Grand Media communication will be the scene picture) Q: The Grand and CNTV cooperation before there are some rumors, today also issued a strategic cooperation program, there are millions of talent recruitment program, the new company's talent introduction? Tan: About cooperation, and then again will explain, now just a simple release. Cntv as our cooperation company, we are very important, we both for easy Orange World Company provides a very good talent. Including the Sheng old team, the system that helped them build their operations in the past.　　CNTV also sent a senior editor, media talent. I think it's a combination of a media platform and an operating platform, an innovation that wants to bring new experiences to the user.　　First of all, it is a legitimate game media, such as video-oriented, more in line with the current development of the mainstream and future trends, but at the same time we rely on this media platform, will also better operate the game, the user is also very helpful.　　Q: What are the core competencies of Shanda games and Cntv now?　　Tan: Grand insist to build a variety of sources, rich product lines, from products in the industry is almost the most, and we have a grand literature are more IP sources, we will create more IP out.　　Through the previous years of construction, the generation of IP channels has been very rich, including the introduction of agents, because Shanda in Korea has a very strong network relations, but also has a good operating record, they are willing to seek our cooperation. At home, in addition to our own research and development team, we have 1877 investment companies, they will also grow up to become our IP source. On the basis of the original larger quantity, we emphasize the different types of distribution, as well as the high quality of the products. This year, like "The Valley of Dragons", "Metro Change", "Bubble Warriors", "Demon World 2", there are many unpublished products, they are in a lot of online games look forward to the top of the list, which brings us great confidence, the user is still looking forward to and recognition of our products, this is our core business part. Of course, there are some things that are being built, such as a strong operating platform, and of course, 10 years of history.　　Now and CNTV cooperation, and further strengthen our operating platform, received from the media support, should help us better marketing and promotion.　　Q: How does the Grand literature platform affect your game? Tan: Shanda Literature can create some IP, such as "New Town Change", "Panlong" and so on, itself between us is open. Because there are a lot of partnerships, you can focus on some excellent IP. So, it is very helpful for us to change the users of online games. 18 Fund is also our investment products, are autonomous, as part of our independent research and development, not only a part, we also provide a platform, research and development of the engine, providing a lot of operations and outsourcing services to help them make good products.　　Q: The Grand acquisition of the legend, including many games after the acquisition, is not focused on acquisitions rather than independent research and development? Tan: On the contrary, before we launched the "Valley of the Dragon", our income of 70%-80% is also from our independent research and development of the game, for many years we have developed independently, this does not mean that "the Valley of the Dragon" we will develop their own.　　We should see a bigger international platform, a globalized business with different entertainment, where our research and development teams can be found all over the world.　　The team generates two ways, either recruiting, either the acquisition, no difference, are from the outside, it is impossible to give birth to their own children, in fact, not to speak of, the middle is the Chinese are foreigners, is a recruit in, or together recruit, too pursue these will only limit their own development space. We are investing in Actoz, now the team has both Chinese and Korean, we are very close friends, have a good relationship of cooperation. In collaboration, language, cultural differences are not important, are working for a goal.　　Actoz obtained our investment, the development is also very good, in the domestic, Japan, Southeast Asia and other regions, have achieved good results, there are new products. In the domestic investment, we have been very important, including on the 1877.　　We will even encourage the people we have previously recruited, they do it on their own and then we invest in him, is a good incentive for them to have a good self-development of the will, so we do not think that investment is a substitute for independent research and development, investment is a kind of independent research and development.　　Q: About the capital market, now the Nasdaq China Network concept stocks general trend is not very good, but the domestic situation is very good, online games concept stocks turned 10 times more than 20 times are not surprising, that Shanda on the domestic capital market in strategic what to consider?　　Tan: Of course we are very concerned about this market, we also have the means of cooperation, are in the process of discussion, there is no specific action can be announced, but we are very concerned about.　　Q: You said before that Shanda Games will consider some new platforms, like the iphone, the ipad, and so on. Now the Dragon Valley is on the iphone and Android platform, and we want to know your strategies and plans for that. TAM: We are also very concerned about the content on the mobile platform, we have different paths, on the one hand is to try to extend the product, such as "The Valley of the Dragon", as in China and Japan have a great success in the product, but also in Taiwan, Southeast Asia, he has aroused concern in many areas, so the brand extension to other platforms is very natural,　　such as the iphone, Android, and so on, which is in line with our strategy. We look at IP as a core asset, the extension of its own IPis also a strong, may also consider replicating on other IP, but this is a process that cannot be accomplished overnight.　　On the other hand, there will be more power in casual gaming, such as launching our gaming platform on Android, but it's still in the process of development.　　Q: Can you give me a general idea of the pattern of investment?　　Tan: It is not convenient to disclose.　　Q: What is the exact amount of investment in the Dragon Valley? Tan: It is not convenient to disclose the specific amount, so far is not very mature. (end) (Edit/Yoon-an)