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Trade Publication Article
Home turf advantage
2003
Overview
As much as 80% of the on-line games played in China are foreign-made. But now local companies are shooting some home-made bolts-hopefully electrifying-into the $240 million gaming arena in efforts to cut out middlemens' fees and gain market share. NetEase, one of the most-watched stocks on Nasdaq, is developing three original games, spending between $1 million and $4 million per game. Shanghai-based game operator Shanda Networking is spending $10 million on creating its own games. They're not alone. A survey by 17173.com shows there were 57 on-line games either in operation or in the final phases of testing as of April this year - out of which 18 were developed by Chinese companies, including companies in Taiwan and Hong Kong. There are some signs that consumers are biting: Westward Journey, the first original game created by NetEase, has attracted 1.2 million subscribers since it was launched last year. Shanda has launched one in-house game this year, called World of Legend, and plans to launch another by year's end.
