The9 Inc. has been making all the right moves, especially with it’s World of Warcraft franchise. This is in stark contrast to Shanda which has been making very questionable decisions lately. A recent article outlines The9’s situation:
NetEase competitor The9, also reporting this week, will hope to fulfill investor expectations of a strong quarter. The9 operates runaway hit World of Warcraft, which was developed by Vivendi Universal’s (V) Blizzard Entertainment division and should continue to see healthy growth as it gradually expands from a solid base in the major urban centers of China’s east coast into second and third tier inland cities.
These smaller cities are experiencing just as much growth as Shanghai, Beijing and Guangzhou, but are relatively untapped by the big entertainment players, allaying fears that China’s Internet games market is approaching saturation. Of the top game operators, The9 appears to have the most reliable pipeline of future game offerings, with two major Korean titles to be launched during 2006. If all goes according to plan, World of Warcraft will still be earning for The9 when “Grenado Espada” and Webzen Inc.’s (WZEN) “Soul of the Ultimate Nation” launch commercially in China.
Shanda, currently with the biggest market share does have an advantage, but The9.com is very smart in expanding to the second and third tier cities. As Shanda flouts their grandness, The9 seems poised to pull the rug right out from under them! While Shanda is busy working on it’s drinks, buying up other people’s games, trying to sell online music, and dissing Microsoft.