Everyone Q2 online game revenue 22.5 million dollars not Zynga

"Silicon Valley network August 11," (Wen/Sina senior commentator: Old Italian dragon Muse) Renren on August 8 released 2012 Q2 earnings show that everyone Q2 total net revenue of 44.8 million U.S. dollars, net loss of 24.9 million U.S. dollars, of which online gaming revenue of 22.5 million U.S. dollars, compared with the same period last year, the increase of 122.1%, But as business growth leads to higher research and operating costs, the growth of the game business is likely to be accompanied by a fall in gross profits.

Renren's share price has fallen for 3 months

SNS interactivity, user stickiness, consumption ability is defeated by Weibo

According to the latest survey data from the study, SNS and Weibo users in the 2011 to focus on the distribution of enterprise users, micro-bo user ratio is significantly higher than SNS, which originates from the advantages of Weibo's media attributes.

First, micro-Bo platform from the media attributes prominent, compared to SNS users more active, bring more interactive ability, to stimulate the user's ability is stronger.

Second, SNS Social property is strong, is the individual shows the projection and expansion of social relations, and Weibo biased to information platform acquisition, for users can learn more content, rather than simple friends.

Renren's user base is focused on students

Third, micro-blog to stay in the stars more, everyone users mostly confined to college students, a narrow range of consumption capacity is weak.

Four, compared to successful Facebook, Renren is focused on building a sense of personal space, a lack of a certain "circle" concept and a fast and convenient way of communicating information. Coupled with the unsatisfactory advertising income, so that everyone in an embarrassing social networking site location.

Weibo users pay more attention to enterprise than SNS users

It can be seen from the interaction between SNS and microblog users, SNS more biased to obtain information, and forwarding, messages, comments, participate in activities and so on the interaction of a strong way are led by micro-bo, it can be seen, to Renren as the representative of the SNS in China to the micro-bo, users are divided, the future development challenges.

The interaction of Weibo is stronger than that of SNS

Everyone game: Renren ≠zynga:facebook independent research and development game push high cost

For Renren Q2 earnings, US investment bank Pacific Crest said it would lower revenue forecasts for Renren, saying "game revenue is $20,000, higher than we expected 18.9 million; advertising revenue is 15.1 million dollars, less than our expected 17.7 million dollars; more disappointing, Advertising revenue fell 11% per cent year-on-year, with everyone giving a third-quarter guideline less than Wall Street expected. ”

In game research and development, senior executives said in earnings and a quarterly conference call that 2012 will continue to maintain the growth momentum of the game business, and is expected to launch a quarterly 2 to 3 new games, everyone is focused on promoting Cross-platform (PC and mobile) game of independent research and development. This means that the next step in the growth of game revenue is the rise in research and development, the cost of personnel compensation, and the fall in gross profits.

In addition, in March this year, Apple App Store for the app list brush ranking of the practice of the ranking algorithm, everyone's three mobile games "Gone with the World" "Stormy" "Iron and Steel Marshal" are suspected of the brush list, the ranking quickly fell more than 200. And last November everyone's game "Gone with the world" in Japan suspected unauthorized use of the player itunes account Brush list, to bring a lot of business to everyone down.

According to I, a net user said that the growth of active users is very high, but not from game revenue, Renren and Renren is not the relationship between Zynga and Facebook, the complementarity is poor, through the road of independent research and development may increase revenue, but the corresponding costs will rise.

The evaluation of net users to Renren

The evaluation of net users to Renren

For the rapid replacement of hand tour, fierce competition and other issues, netizens point out that the current growth of everyone's game can be seen as the iOS platform for high pay conversion rate brought by the early dessert, rather than due to the advantages of their own products caused by the consequences, rather than rely on product profit growth, rather than to find a good channel.

Sina's old idea is that Renren's business structure is complex, but the complementarity between video, games and Renren is not strong, and every section is likely to require continued high input to ensure operations in accordance with today's trends. The double pressure on research and development is likely to make it impossible for Renren to launch a core service or product, coupled with the fierce competition in the mobile Internet, as well as the traffic threat caused by users of micro-blogging, Renren is confronted with multiple challenges of multi-line business, and the company needs to take a long way to integrate the overall development of the architecture.