Goldman Sachs expects second half of grand games to rise first

Beijing time October 5 Morning News, Goldman Sachs today published an investment report on the recent visit to the Grand Games (nasdaq:game) and Shanda Network (NASDAQ:SNDA) survey of the status of the briefing. The following is a summary of the report: 1 Grand games for the Grand network contributed more than 80% of the income, we expect the "Blood Legend 2" and "Legend of the World" in the third quarter of the income will be a month-on-month decline, because the company has spent several quarters to stabilize the legendary series of games. This situation is similar to the Giant (Nyse:ga) 's "Journey online". But we expect the game's revenues to rise on a month-on-month basis in the last quarter of the game, as the eyedentity of the "Dragon Valley" in China and overseas will offset the decline in the legendary series, after integrating the South Korean online gaming company. Shanda games will be published in mid-October to the "Valley of the Dragon" content update. We estimate that the fourth quarter of the "Dragon Valley" will contribute 5% to 10% of the total revenue for Shanda, which is likely to surpass the "Tower of Eternity". We see the mandate of Final Fantasy 14 as yet another triumph for the Grand game's multi-source strategy, because the Final Fantasy series has already won 97 million sales worldwide, and Final Fantasy 14 is a huge investment.　　Shanda is likely to launch the game in 2011 or 2012 years, as the company plans to spend a year localizing its content. 2 Shanda Online has signed agreements with 50 Third-party publishers, most of which are game companies.　　Revenue contributions from third parties are likely to wait until 2011, as the Shanda network is still focused on platform infrastructure. 3 The second quarter of 2010, the Grand network of other income growth of 42%, and for the first time a separate list of the achievements of the grand literature (to achieve income of 100 million yuan, accounting for about 7% of the total income of the Grand Network). However, we expect one-third of the growth to come from mergers and acquisitions, while some of the revenue from Shanda literature comes from online publishing activities such as book sales. The Grand E-reader (Bambook), which is priced at 999 yuan, has not yet been profitable, but the Shanda network plans to compensate for it through the earnings of digital content. The Shanda network's "Cloud Book bookstore" has integrated the company's 7 literary sites, as well as more than 1000 digital magazines. We are concerned that the way to read paid digital content via tablets is still immature in the Chinese market. (PEI)