NET game Enterprise agency into income shackles urgent need to strengthen independent research and development
KeywordsOnline games urgent shackles
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Just released the 2012 annual results of NetEase (NTES.NASDAQ), the most immediate one bright is its annual online game revenue of 7.3 billion yuan, compared to the previous year's 6.6 billion yuan growth of 10.6%. Among them, online revenue growth is mainly due to NetEase's independent research and development of the net, such as "Dream West Tour", "Qian Female Ghosts", "World 3" and other income growth, at the same time, its agent Blizzard Entertainment game income is falling. This seems to be in the domestic game enterprises generally adhere to the mode of the agency sounded the alarm. An analyst said, in the absence of accumulation, agent a successful game, can help game operators in a short period of time to do the market, the rapid accumulation of experience, popularity and funds, such as Shanda games, the early years is a proxy game started, and then become a number of games operating platform. However, the agency also has a natural drawback, that is, the agent can not determine the game of the right to stay. Success or failure in the agency nine city in 2004 to obtain the "World of Warcraft" in China's exclusive agency rights. Over the next four years, the game became the source of nearly 90% of the nine city's revenue, accumulating tens of millions of user resources. 2009 NetEase and the game's developers to reach a deal with Blizzard Entertainment, from the nine city operation of "World of Warcraft" expired after the expiration of the contract, turn by NetEase operation. After losing the agency of World of Warcraft, nine cities have not found the same strong new business, the performance plummeted. Because of the operation of "World of Warcraft" and so on the super popular online games, NetEase game revenue in total revenue accounted for a whopping 85%, and Tencent and Sohu games accounted for the proportion of their total revenue only half. But relies heavily on "one foot" to walk, lacks the new profit growth point, also restricts the netease growth space. With the decline of World of Warcraft, NetEase gaming Business is facing the constant loss of the backbone of the game development, the game market is constantly solidified and from competitors to erode pressure. Since last year, NetEase began to increase the strength of independent research and development, launched the "Soul" and "Wu Soul." Last year's third quarter earnings show that NetEase independent research and development game revenue growth, its independent research and development game revenue of the chain growth mainly rely on "Dream West Tour", "Dahua West Tour online II", "Wu Soul" and "soul" of the four games. The future asset release report said that NetEase's independent research and development of the game camp received 2013 year-on-year growth of 30%, higher than 2012 21% year-on-year growth, and the agency's blizzard revenue in 2012 and 2013 will fall year-on-year. "Online games agent is easy to controlled, only independent research and development is to help the company develop independently the best policy." The original Jinshan software chairman begged Baijun has given the agency under such a conclusion. Barriers to independent research and development in the third quarter of 2012, Tencent game revenue reached 5.9729 billion yuan, an increase of 43%, the first in the industry. and NetEase game revenue 1.7 billion yuan in the same period, less than the same period last year to earn 100 million yuan. The industry insiders told reporters that the successful operation of the "Underground City and Warriors" and "through the FireWire" two games, Tencent game is more than the key node of the game. 2011,Tencent's 56% revenue comes from games. Among them, the above two popular games for its current year total revenue contributed about 40%. But the independent research and development has been the development shackle of Tencent net game. Overview of Tencent's game, the company's overall revenue-driven main focus on the agency's MMORPG (role-playing) products, such as "CF", "DNF" and so on, and its self-developed, especially MMORPG products have been tepid. "Dungeons and Warriors" and "across the line of fire" is the introduction of Tencent from South Korea's network game. The two games previously in South Korea is basically a death of the game, Tencent through the operation of the transformation, the games into the domestic players in line with the taste of the game and content, successful reversal in the local market. "Through the FireWire," The monthly revenue peak reached 800 million yuan, become the online game one of the most lucrative games. Eric Cao Di, a veteran gaming industry analyst, said Tencent's "through the FireWire" contract was due to expire in 2013, and how to continue the performance contribution of such games has become one of the challenges Tencent faces. NetEase, aware of the problem, is now biased towards its own research route. In fact, with excellent independent research and development strength is a game enterprise can maintain a long-term competitive advantage of the foundation, such as EA, Blizzard and other world-class game companies, strong research and development capabilities are the basis of the body. And from "Forbes" two years ago to the most lucrative online game rankings, the number of independent research and development of the game is far more than the agency's online games.
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