Shanda responds to Citi Report: Gaming mobile Platform misunderstood

Sina Science and technology news August 31 afternoon, in response to the Citi report "Grand mobile game platform strategy is doomed to not be successful," The View, Shanda today, said Citi will be a grand mobile gaming platform simply equate to an application store, this is a misunderstanding. The Grand mobile gaming platform is essentially an open system. The following is the full text of the Grand response: Today, Citigroup analyst released a report on the Grand Game mobile gaming platform strategy, and its Baidu, Tencent, real-time market, Qihoo, such as the recent introduction of the application store to compare the view that the grand game to try to sell their own games through their own applications, is doomed to not succeed. In response, the Shanda game said Citi had misunderstood its mobile platform. Citigroup analysts believe Shanda sells its popular hand tour, "Millions of Arthurian", through its own app store, rather than the third Fang Andro App Store, which integrates the recently-purchased service platform Shanda Online (www.sdo.com), launching the "G-home" mobile gaming platform, Play sales, payment and customer support. In addition, Citigroup analysts also believe that the Grand games to use the "Million King Arthur" in China's success to attract more gamers to support its G-home platform, and then through the G-home expansion of game sales, thereby increasing the number of mobile games and large online game players, but given that the grand game of the user base is small, Citi is wary of the strategy. In response to these queries, the Grand game is considered misunderstood: first, Citi refers to the Grand game mobile gaming platform "G-home" is a grand game launched on August 20, "G Home" platform. "G Home" is not a common application store, but vertically integrated boutique content, boutique services, boutique users as one of the Hand tour boutique. It is designated as "Hand Tour boutique", its operational strategy is outlined as "1%, 10%, 100%", meaning "G home" with the screening of large-scale network game program to select the market 1% of fine hand tour, like the operation of large-scale network games with 100% resources and energy to provide quality operations and services. At the same time will open the "G-Home" or a single product of G-products into other channels and markets, and developers, markets, channels to share up to 90% of the revenue. So fundamentally, this is not what Citi says, selling its own games through its own app store, but creating an open system. In addition, the "G-house" is not as the interpretation of Citi is simply "the acquisition of the parent company's service platform Shanda Online (www.sdo.com)", but the whole grand group has accumulated over the past 12 years to accumulate a complete set of resources, channels, tools and service system, including account security, customer service, point card channels, payment billing, User behavior data platform, membership system and information dissemination system, and "Shanda online" is only one of the components. Citigroup analysts believe that because of the small number of Shanda games users, it is difficult to travel through the popular hand tour such as "Million Arthur" success to attract more gamers support"G Home" view. Shanda games that the value of the core user group is just a grand game in the industry's largest advantage, Shanda games currently has a total of 20.74 million VIP game users, and these users in the past accumulated for the grand contribution of 24 billion yuan of income, this is the industry believes that the most valuable game user groups, with high pay capacity, High ARPU value of the user base, and the grand game is to the more than 20 million of the core paid users out to do hand tour. In addition, "G home" will be through open cooperation, the game will be extended to the platform and Channel beyond the grand, so the user group is unlimited, Shanda games in the use of their resources and operational capabilities, like to create an MMO to create excellent hand travel products. Shanda Game yesterday released its second quarter 2013 financial report, the second quarter net revenue of 1.085 billion yuan (176 million U.S. dollars), net profit of 374 million yuan (60.6 million U.S. dollars), the chain growth of 52.9%, year-on-year growth of 21.4%. Its mobile strategy has become a bright spot, Shanda CEO Zhang said mobile gaming revenues are expected to grow by 50% in the third quarter and achieve overall revenue over 10%, and Shanda is committed to moving 50% of existing MMO users to "G" by the end of the year.