Grand three quarter net profit plunge near the game business drag

Homogeneity of products facing the test, including Shanda, many of the online games have been brewing the transformation of Sun Jinzhangko "Grand is in the critical transition period." "Shanda Network" (SNDA.　　NASDAQ) Chairman and CEO Chen said yesterday. The Shanda Network released its third-quarter results this year, with revenue of 1.392 billion yuan, up 2% year-on-year. But the increase in operating costs has led to a year-on-year decline in operating profits of nearly 70% to 23.1 million U.S. dollars, a quarterly low of 2007 years.　　Net profit is down 77.2% to 14.8 million dollars. Shanda network revenue from Shanda games, Shanda online and other revenue components, Shanda game revenue accounted for the total revenue 78.8%.　　And Shanda's third-quarter revenue was 1.0963 billion yuan, down 14% from the same period last year, down 1% in the chain, and net profit of 289 million yuan, down 23% year-on-year. "Grand 11 years have not been smooth sailing, but also after several transitional period." Now Shanda is entering a new transition period, we have experienced 16 quarters of double-digit growth, through the listing of Shanda games to accumulate enough capital reserves, we believe that in the future years China's Internet will be the most brutal competition.　　"Chen thinks. Chen said that in order to be able to meet such competition, in 2010 Shanda spent a lot of money in research and development, new business investment and the transformation of new models.　　Shanda Games will be transformed into community games, new technologies will be transformed into search and community, and newer models will be extended to location services. Grand CFO Wu Shao said that as Shanda continued to invest in research and development, and increased infrastructure investment, the rapidly growing new business still needed people, research, marketing and product inputs, while Shanda officially launched its E-book reader Bambook in the fourth quarter,　　Profit margins are expected to remain under pressure in the fourth quarter, which will take some time to stabilize.　　Not only grand to accumulate funds to prepare for the next few years of brutal competition, more online gaming companies are also facing the winter of income. Once because of "World of Warcraft," The agent of NetEase cross knife to win love and income fell more than 90% of the nine city (NCTY.　　NASDAQ), recently quietly abolished the "Miracle Legends Mux" project team part of the staff, it is reported that the person in charge He Xudong, producer Dingzhen, the main strategy Yao have resigned. Another Nasdaq-listed company is perfect for time and space (PWRD. NASDAQ) also unveiled an internal staff adjustment plan last week. The attrition rate is about 5% and is expected to spread to around 200 people. November 23, the perfect space-time release of the three quarterly report shows that, although revenue and net profit remain on the rise, net profit compared with the same period last year fell 25.9%.　　The day after the earnings release, the perfect time and space price plunged 17.29%.　　In the face of income decline, some games companies have chosen to find new profit channels. The famous investment company IDG Capital and online games company Network Dragon (00777.HK) announced yesterday, launched a mobile internet special named MfundInvestment fund, which plans to invest 50 million of dollars in the next few years to help Chinese SMEs and individual developers in the mobile internet business. "Compared to the pressure of large online games, the current web game and mobile gaming opportunities better." "For the Games companies have to adjust the strategy of the reason, a net game company responsible to the" first financial daily analysis, said, "In addition to NetEase agent of" World of Warcraft "and other strong game robbed a lot of large-scale games market share performance is good, many companies face problems. In the past many large online gaming companies have been learning NetEase's own research and development team, once the development of new games, or the new game response is not good, under pressure can only be forced to lay off or transformation. "Another game company Kylin Game CEO Shang said:" Objectively speaking, Tencent Games and web games do have a diversion to users, from the subjective, the lack of strong products, especially strong innovative products, will inevitably lead to homogeneity of products to face the test. ”