US investment Companies Report: China's online gaming industry is growing unsustainable

Beijing Time November 2 Evening News, the U.S. investment company Auriga released today reported that the Chinese online gaming industry is unlikely to continue its previous high-speed growth, the performance of the concept of online games will be more driven by short-term performance. The following is the full report: We believe that the growth rate of China's online gaming industry will slow due to the changes in industry fundamentals. The industry has maintained an extremely rapid growth rate over the past 10 years. The change comes in two ways: 1 The rise of social networking sites replaces the social function of online games, 2 the excessive commercial development, and the lack of quality content that leads to boredom, and the current player's enthusiasm for new games is far less than it used to be. So we believe that the industry is unlikely to maintain its past growth rate and will be in line with the growth rate of Chinese Internet users in the future. Because of the decline in growth rates, we tend to focus on the short-term performance of online gaming companies, as well as the performance changes driven by major events.　　In our study of the concept of online games stocks, we believe that the grand game, perfect time and space and NetEase's performance will appear to rise. -China's online gaming industry is unlikely to continue its rapid growth in the past. In the past 10 years, from 2001 to 2009, China's online gaming industry grew at an annual compound rate of about 78%. However, we expect growth in this sector to slow and may even be negative for 2010 years. The industry is unlikely to continue its faster pace of growth in the past. We believe that the Chinese online games industry has reached the peak of growth, the future growth will be consistent with the growth of Internet users, that is, about 20% a year.　　The slowdown comes in two ways: 1 social networks replace the social functions of online games. In China, online games are a cheap form of entertainment. On the other hand, because of the community and other functions, online games is also a way of social players. During the game, players can socialize. However, in the past few years, social networks have been emerging in China, which has replaced the function of online games. China's independent social networking platform includes 51.com, Kaixin and Renren, and other social channels, such as microblogs, cell phone chats and text messages, in addition to online games. Social networks have grabbed users ' time online from online games.　　Therefore, even if the total number of players in the increase, but the total time players play the game is still declining, which will lead to a decline in net revenue growth. 2 based on the model of props led to the excessive commercial development of the game and the boredom of the players in the past 1.5, most Chinese online gaming companies found that the number of games players dropped significantly. We believe this is due to the fact that the model of props has led to the excessive commercial development of the game, which shortens the life cycle of the game. At the same time, player groups are becoming more complex and require better, more differentiated content. At present, the moderate level of online games has been unable to attract player interest.　　Because many of the games in the market are essentially similar, players begin to get bored with the games. -The online gaming unit should focus on short-term performance and change in performance driven by major events. Because we think that the growth of the online gaming industry will slow down, we are more inclined to focus on the short-term performance of the company, as well as the performance changes driven by major events. We believe that Shanda games, perfect space-time and NetEase's performance will rise. (Digging the shell net)