Online games

Business/Industry

Company is a online game developer and operator in China. It primarily develop three-dimensional, or 3D, online games based on its proprietary Angelica 3D game engine and game development platform. Its strong technology and creative game design capabilities, combined with its extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games designed to cater to changing customer preferences and market trends in China.

In 2006 company launched its first three self-developed 3D massively multiplayer online role playing games, or MMORPGs, In the first quarter of 2007, these games recorded approximately 237,000 average concurrent users in China.

• Perfect World (January 2006)

• Legend of Martial Arts (late September 2006)

• Perfect World II (end of November 2006)

In late May 2007 company launched a new self-developed 3D MMORPG, Zhu Xian, .

Business/Industry outlook

Online games are electronic games played over the Internet. They can be played individually or in large groups of players simultaneously in the same game who interact in a game world. China is a key online game market in the Asia-Pacific region and has substantial growth potential. According to IDC, 

China’s online game revenues reached US$816 million in 2006, representing a 73.5% increase over 2005. 

IDC predicts that China’s online game revenues will reach US$3.0 billion by 2011, representing a compound annual growth rate, or CAGR, of 30.2% from 2006 to 2011.

Many factors have supported to drive the growth in the online game market in China, including the following:

• Increasing Internet, broadband and PC penetration;

• Online games as an attractive form of entertainment relative to other forms of entertainment;

• Low entry cost and convenience of play for users; and

• High degree of user loyalty.

Many players in China view online games as an attractive form of entertainment and desire to have more personalized, customizable and interactive game experiences. In addition, there has been a noticeable trend towards development and operation of 3D online games in China, as 3D games provide a more realistic representation of real-life objects and can depict more complex activities.

Domestically developed online games have shown strong competitive advantages in China.

According to IDC, in 2006, revenues generated from domestically developed online games reached RMB4.2 billion (US$0.5 billion), accounting for 64.8% of the total online game revenues in China.

Considering the above factors online gaming industry in china is set to grow bigger and is evolving as big entertainment medium.