Shanda game continues to slide and fears fall out of the first camp

Source: Internet
Author: User
Keywords Shanda Games Tan performance Chen Tianqiao

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As a huge network of long-term blood transfusion machine, Shanda games are increasingly showing physical strength.

In the second quarter of 2012, net operating income fell 14.4% from a year earlier, down 18.6% from the previous quarter, the report showed. Net profit fell 9% from a year earlier, down 11.8% from the previous quarter.

Meanwhile, following Chen's 13-year-old grand veteran Tan, who resigned as chairman and CEO of Shanda, the former chief producer and Coo Zhang (Weibo) was appointed as the new CEO. The two main reasons for leaving, Tan in the internal mail on separation, are that the individual is overwhelmed and the second is responsible for the fall in performance. But according to the reporter of China Business newspaper, Tan's departure is no coincidence. Since 2012, there have been many rumors about Tan leaving the house. This message confirmed that in the grand game inside both sad and confused.

By the grand privatisation and slimming adjustment, the impact of the past six months, the grand game of internal layoffs did not stop. The performance of the great decline, tan hang India, leaving the Grand game is a more confusing future.

Fear of falling out of the top three

That year to rely on the operation of "legend" series boarded the throne of the industry boss, but has not been free from the "legendary" heavy dependence. "Legend" for the grand like a double-edged sword, after doing nothing can never get rid of the "legendary" genes. "In the view of Analysys International analyst Sun Mengzi, today's grand game is quite a bit America."

In fact, since the 2010, Shanda games have been showing signs of weakness. In the first quarter of 2010, Tencent surpassed Shanda to become the industry first. The second quarter, NetEase again beyond the grand, grand fall to the third, the formation of the three strong game to maintain so far.

Performance has been at a standstill in the grand, and the gap between the second camp is gradually narrowing. After a big fall in the second quarter of 2012, the gap with Sohu was further narrowed. Net operating income in the second quarter was $179 million, down 14.4% from a year earlier, down 18.6% from the previous quarter, according to Shanda game earnings. Net profit was $53.2 million, down 9% from a year earlier, down 11.8% from the previous quarter. On the other side, the swim is at a fast pace. 2012 in the second quarter, total revenue was 147 million U.S. dollars, up 30% from a year earlier. The revenue gap between the two sides fell to about 32 million dollars.

"This kind of situation continues to develop, swims surpasses grandly to become the profession third, is at present." "Analysys International analyst Shi Yong points out. "Shanda Network privatization needs a lot of money to supplement, Shanda game for its blood transfusion situation, itself is also a substantial reduction in costs and costs." The total operating fee for the second quarter was 351 million yuan, which was 20% lower than the 437 million yuan in the previous quarter. Correspondingly, the marketing activities of Shanda games are also greatly reduced, affected by this, in the absence of new products launched under the premise of this quarter, the number of active users of the game is 17.3 million, while the last quarter of 19.1 million; the integrated ARPU of the game products fell from the last quarter's 99.9 yuan to the quarter's 90.3 yuan. "On the other side, the swim in the strategic implementation level performance, the acquisition of 17173 and web game company Seventh Avenue, on the performance has pulled the role." After the perfection of the 2010, the overall performance was in a steady upward period.

Leaving behind

Along with the grand privatization and internal adjustment, in recent years the generals have jumped away from the grand chariot. And this grand game performance decline, and then tan leave still let the industry rather regret.

Since Chen Tianqiao entrepreneurship, Tan followed around 13, is considered to be outside the Chen brothers, grand internal heavyweight elders. Tan is also considered to be the most trusted right-hand arm of Chen Tianqiao. Graduated from the East China University of Science and Technology, Tan to graduate from school to participate in Grand entrepreneurship. Many times at the critical moment for Chen as "firefighters." 2008 Tang June (Micro-Bo) resigned as Grand President, when the grand CTO Tan to replace Tang June as president. Grand Games after the listing, Tan as chairman of the Grand game, 2010 and replace Yu concurrently CEO of Grand Games. Reporters from the Grand Games public Relations director Liu Hong Department was confirmed, tan after leaving, the original chief producer was appointed as a new CEO, and Chen will be the chairman of the Grand Game board. After the departure of Tan, Chen Flyover is the first time with the Grand Games high-level held an internal communication will, and tan performance to give "meritorious has had" evaluation.

Even so, the key reason for Tan's departure is that performance is substandard. Close to the Royal game insiders told reporters, "star Change" and "0 world" is tan long-term responsibility of the two major projects, "star Change" failed to meet the original revenue expectations, and "0 world" since the project, a few times dystocia, 2012 ChinaJoy on the Allstar of the Grand game to further launch the "0 World" promotional film, and at this time away from the "0 World" project has been about 6 years. Long-term investment has not yet seen a return. Another rumor is that Chen also wanted to cut off the project.

The other side, accompanied by Tan's departure and still not stop the layoffs tide, Shanda games inside the current Manter. According to the foregoing Personage discloses, in the past six months, the interior has been in the downsizing, the support department merges, some projects and the workshop also is in the abolition, some workshop's redundancy ratio achieves one-third, some projects even the entire staff cuts off. The remaining people are not at ease, "Shanda in pay is also the charm gradually lost, the incentive for senior staff to stay in the pay of the rise is only about 4%~5%." ”

According to another grand game, a former staff revealed that this time the layoffs from a one-time project too much, two or three people as a team, and sometimes also responsible for several small projects, "but a large number of small projects do not make money, one months of income only in two thousand or three thousand yuan, beyond the means." "With the adjustment of the group and the contraction within the game, layoffs are inevitable."

"In Chen Tianqiao's entertainment empire under the shadow of the dream, from the Grand group to the game inside there is a growing too quickly, stall laying too big ills, go to the end inevitably into contraction." "Industry veteran analysis, in the game development strategy, Shanda Games in recent years, the idea is not clear." Tencent in the client casual games and web games in the leading position, NetEase with the help of the blizzard cooperation income stability, has been emphasizing independent research and development. Grand in eating "legend" at the same time, except "The Valley of the Dragon" for the Revenue Stability Contribution force, the 2011 has placed great expectations of the "star change" did not meet the standards, there is no strong new game as a support, decline is inevitable.

On the future adjustment of Shanda, the new CEO, Zhang, said it would slow the commercialization of the "Blood Legend" and "legendary World" two games to help them develop healthily. After the tan, will still adhere to the original 3A strategy (all-Star, full platform, the whole region), but also through the overall allocation of resources, fully tap the opportunities of mobile Internet. It is understood that after Tan left, Zhang became the only surviving "old man" in the Grand game, and was the core manager of "Blood legend" and "Legendary World", which placed great expectations on it.

Even so, Shanda still faces how to stabilize the people in the tide of layoffs that have not stopped. 2011 began, Shanda Game President Ling, Vice President Zoo Yurong, Chen Haojian successively left. "Tan's departure doesn't mean it's over. "In the eyes of the industry, the grand slide is not only reflected in the decline in performance, many generals have left the field, Chen flyover to revive the Royal Empire to become really difficult."

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