Nine home Page tour company response: lack of understanding of Chinese games

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The statement said that the open letter here shows that the Chinese market and Chinese companies have little knowledge of the analysis of the low level of analytical reports, its self-appointed "understanding China" title is really unbearable.

Tencent Science and Technology (Lotte) September 13 News, echocardiography Game CEO Huang Yimeng (Micro-blog), 37wan CEO Li Yifei, Blue Harbor online CEO Wang Feng (micro-Bo), fun Tour CEO Jade Red, etc. 9 web game company CEO today jointly released a report on the CEO of Xiang-Ford to respond, Said the company knows little about the Chinese market and Chinese companies.

The 9 CEO said in a joint statement that the analysis of the Chinese market lacks a basic understanding of China's game markets. The company compares the different types of game companies, and does not know how the ARPU value of each firm is calculated, as compared to the price of a house and a hotel room. The statement also said that the low level of the analysis report, the self-proclaimed "understanding China" title is unbearable.

The following is a transcript of the Lefort statement:

Mr. Lefort: Game over, willing to gamble defeat!

_______________________________

Open letter from China's leading web game production company to Citron

1. The report of the company confuses different types of companies

In its report, Incense said:

No one in the game industry--whether in China, the US or anywhere--can reach 53 dollars on average per-paid user revenue (ARPU). Nintendo, swimming and Shanda are not. Other Chinese gaming companies have announced ARPU values of about 3 to 8 dollars a month. Zynga has 1 to 4 dollars per month for each paid user's revenue, depending on the calculation. Even the "gold standard" of Blizzard International, its "World of Warcraft" is a standout in online games, from American and European gamers-whose games cost far more than Chinese gamers-for a 15-dollar subscription fee a month.

However, NetEase, swimming, Shanda, Zynga and the United States are totally not in the same game market!

We are here to provide some basic knowledge for Mr. Lefort to do his homework in the preparation of the report.

Any outstanding and professional Investment Research institute in this field knows that the revenue model, the industrial ecosystem, the target audience, the user base, the sales channel, the user cost, the game lifecycle and the ARPU value are all completely different between these different types of games. Compare them to each other, and the resulting conclusions will be completely different.

Mr Lefort, in his report to investors, did not specify the differences between these types of games, comparing the game of Qihoo with that of a different kind. He did so either that he did not understand these distinctions or a worse possibility: he deliberately did not specify these distinctions in order to gain economic benefits through their false analysis.

Mr Lefort's main point is that the ARPU value of Qihoo is higher than that of other companies. However, Qihoo's gaming business is a "web game operating platform," while other companies listed are client-side network gaming companies (NetEase, Shanda and Cruise) and social game Makers (Zynga). Different types of games also have a huge difference in ARPU values.

Web Game (hereinafter referred to as "page Tour") company mainly includes producers and operating platform, they produce and operate the Web game, users can run directly in the Internet browser, without downloading and installation. This type of game attracts mainly casual gamers who use debris-time games. And the client-side network game ("End Tour") Company's game has a longer life cycle, the target users are also more loyal to the gamers, they will spend a lot of time in a game, and for a long period.

The comparisons made by Mr Lefort, as compared to the price of house and hotel rooms, suggest that he compare hotels to hotels rather than residential plots.

2. Citron doesn't know how to calculate ARPU.

The ARPU value of a page tour company, will swim much higher than the end? Do it for the following reasons:

1 The page swims attracts the user, the attention time is shorter, therefore the page swims monetization also emphasizes in the game beginning part, enables the game producer to maximize its economic return in the short game life cycle. By contrast, end-trip attempts to build a more loyal user base and achieve repetitive gains over a long period of time.

2 We as the domestic Main page tour producer, our hands game operation on each operating platform, so we can see the data of different platform. The following table with one of our company a main game of real data for example, it on the platform of the ARPU value is between 400-600 yuan, and Qihoo's data in this range:

3) We note that the ARPU value of all the major operating platforms in China will be slightly lower. The reason is that although Renren and Qihoo operate on some overlapping games, Renren's users are mostly students, with lower incomes and a lot of social games on Renren, both of which have pulled down the ARPU value of Renren.

4 There is also a very important difference in the way the ARPU is calculated. The monthly ARPU value is always equal to the monthly income divided by the number of users of the month, but the definition of this "month of users" is very different.

• The end of the calculation ARPU value, you can refer to the grand definition, its denominator is active pay account number, that is, the month "consumption of virtual currency player account number."

• Page Tour calculates ARPU value, the denominator is the number of recharge users. It is obvious that the ARPU calculation formula is less than the denominator, because the user recharge the frequency is lower than the frequency of consumption, recharge will spend a period of time. The ARPU value of the page tour is higher than that of the end-swim in this denominator.

Mr Lefort this way of comparison, like a consumer to a big store said: "Your family's apple is too expensive!" actually sold 34 yuan, the next supermarket is clearly only 1 yuan. "But the reality is, the price of this big store is every carton, not every apple!"

To sum up, we pointed out that the different types of game companies ARPU value is not comparable, because 1 game type is different, the nature of its business has a difference; 2 These companies ARPU calculation methods. He claims to know China, but seems to lack knowledge of these basic information.

Like the previous report on the Citronfraud.com Web site, the open letter shows that it has little knowledge of the Chinese market and Chinese companies, and that its analysis and analysis report is low, and its self-appointed "understanding China" title is unbearable.

We hereby respectfully request Mr. Lefort to remit his donation to the One fund, which is as follows:

Opening unit: Shenzhen One Foundation Public Welfare Foundation

Bank: China Merchants Bank Headquarters Business Department

RMB account Number: 755917671010888

Address: No. No. 7088 Shennan Avenue, Futian District, Shenzhen, Guangdong, China

After donation, please fill in your information in one family donation feedback form:

Fax to 021-63350291

or send mail to idonation@one-foundation.com

Joint signature (alphabetical by surname):

Huang Kai, CEO of Guangzhou Sound

Huang Yimeng, CEO of cardiac games

Li Yifei, 37wan CEO

Lynch, the tour CEO

Meng, 250.html > Seventh Avenue COO

Wang Feng, CEO of Blue Harbor online

Yu Guang, founder of the Sharp War

Yu-Hung, CEO of Fun Tour

Zhu Ye, God Interactive CEO