04.10.2007 12:07:00
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CDC Games Provides Update on Key Performance Metrics
CDC Games, a business unit of CDC Corporation and pioneer of the "free-to-play,
pay for merchandise” model for online games in
China, today announced key performance metrics for certain of its
commercially available games in China.
Yulgang, one of China’s most popular online
games, now in its third year of commercial availability, posted average
daily revenue growth of more than 20 percent in September 2007 compared
to both July and August 2007. As noted previously in the CDC earnings
announcement on September 6, 2007, the company saw a drop in Yulgang
revenues in July and August primarily due to unauthorized "pirate”
servers offering Yulgang, as well as the need to update the current
version of the game. As a result of the direct efforts of CDC Games, in
conjunction with the support of the Chinese government authorities, law
enforcement agencies, as well as Internet operators, CDC Games believes
that two-thirds of the pirate servers were successfully shut down in
August and September. Additionally, on August 28, 2007, CDC Games
launched Yulgang v180, a comprehensive upgrade that includes new maps
and weapons, as well as an updated clan feature that enhances the
virtual community aspects of Yulgang to improve ARPU (average revenue
per user). The company attributes the growth in Yulgang revenues in
September to the combination of shutting down pirate servers and the
launch of Yulgang v180. Although revenues have not fully returned to
pre-July levels, CDC Games continues to avidly pursue the shutdown of
pirate servers and will continue to provide ongoing, compelling game
enhancements.
Special Force, the first-to-market, first-person-shooter online game
launched by CDC Games in China on June 20, 2007, now exceeds 6 million
registered users. Average daily revenue for Special Force was up
sequentially 23.4 percent from July to August and 52.3 percent from
August to September. Peak concurrent Users (PCU) was up approximately
13.3 percent from August to September and average play time for Special
Force users is now approximately 79 minutes. During the last five days
ended October 3, 2007, Special Force posted record revenues, unique
visitors, average concurrent users, and peak concurrent users.
Since the acquisition of the OPTIC games division from CITIC Pacific on
July 12, 2007, their primary game, Shaiya Online, has performed well
with average daily revenue in September up 15 percent compared to July.
Shine Online, a new cartoon fantasy, 3D massive multiplayer online
role-playing game (MMORPG) launched by OPTIC on September 24, 2007,
already has 765,000 registered users in its first 10 days of commercial
availability.
Management of CDC Games continues to believe new game launches are
critical for sustainable success. As such, five to six new games are
planned for commercial launch during the next six months, including The
Lord of the Rings Online™: Shadows of Angmar™,
which has already seen considerable success in North America and Europe.
In addition, CDC Games USA is now up and running and building a pipeline
of games targeted toward the U.S. market. The planned start of the open
beta testing of Battle of Shadows in the United States, originally
announced on September 26, 2007, has been postponed to ensure that
everything is ready for effective testing of the company’s
first online game in the United States. The open beta testing is
expected to begin soon with the commercial launch expected during the
fourth quarter of 2007.
"In July and August, we saw the slowdown in
Yulgang, and we have quickly taken effective steps to address the pirate
server issues and refresh the game with an exciting upgrade,”
said Xiaowei Chen, Ph.D., president of CDC Games. "We
will continue to shut down pirate servers, and although recovery will
take time, the trend is already encouraging. Compared to Q3, Yulgang
showed strong signs of recovery during the first few days of the ‘Golden
Week’ National Holiday. From the trend in the
numbers we are seeing at the end of September and beginning of October,
for both the established games such as Yulgang and Shaiya, as well as
the newer games such as Special Force and Shine Online, we expect to see
strong sequential growth in Q4 2007.” About CDC Games
CDC Games is one of the market leaders of online and mobile games in
China with over 100 million registered users. The company’s
hit title Yulgang was among the first "free-to-play,
pay-for-merchandise" online games in China and has received the "Top 10
Most Popular Games" award from the China Game Industry Annual Conference
(CGIAC) for two consecutive years, in 2005 and 2006. Currently, CDC
Games offers six popular MMO online games in China that includes:
Yulgang, Shaiya, Special Force, Mir III, Shine and Eve Online. In March
2007, the company announced the formation of CDC Games Studio to
establish strategic relationships with selected games development
partners to accelerate the development of new, original online games for
China and other targeted global geographies. CDC Games anticipates being
able to deploy up to $100 million for CDC Games Studio investments
through contributions from CDC affiliated companies, external partners
and its internal resources. CDC Games Studio recent investments include
Gorilla Banana and Mgame, the developer of Yulgang, in Korea, and Auran,
the developer of "Fury," which received the "Most
Surprising” award at the 2006 E3, in
Australia. In August 2007, CDC Games formed a new subsidiary called CDC
Games International (CGI) and CDC Games USA to launch new games
internationally and to position CDC Games as a global publisher of
online games. For more information on CDC Games, visit: www.cdcgames.net.
About CDC Corporation
The CDC family of companies includes CDC Software focused on enterprise
software applications and services, CDC Mobile focused on mobile
applications, CDC Games focused on online games, and China.com focused
on portals for the greater China markets. For more information about CDC
Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net.
Cautionary Note Regarding Forward-Looking Statements This press release includes "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements regarding the
ability of CDC Games to increase revenues for Yulgang, successfully shut
down pirate services, improve ARPU for Yulgang, increase revenues for
Special Force, Shaiya Online and Shine Online, successfully market Shine
Online, launch additional titles during the next six months (including
Lord of the Rings Online), start open beta testing of Battle of Shadows
in the United States, increase revenue performance during Q4 2007, and
other statements that are not historical, the achievement of which
involve risks, uncertainties and assumptions. If any such risks or
uncertainties materialize or if any of the assumptions proves incorrect,
our results could differ materially from the results expressed or
implied by the forward-looking statements we make. These statements are
based on management's current expectations and are subject to risks and
uncertainties and changes in circumstances. There are important factors
that could cause actual results to differ materially from those
anticipated in the forward looking statements, including the following:
(a) the ability to realize strategic objectives by taking advantage of
market opportunities in targeted geographic markets; (b) the ability to
develop and market successfully first person shooter games; (c) the
future growth of the online games industry in the China market; (d) the
possibility of development delays; (e) the development of competing
products and technology; and (f) the entry of new competitors and their
technological advances. Further information on risks or other factors
that could cause results to differ is detailed in filings or submissions
with the United States Securities and Exchange Commission made by CDC
Corporation in its Annual Report for the year ended December 31, 2006 on
Form 20-F filed on July 2, 2007. All forward-looking statements
included in this press release are based upon information available to
management as of the date of the press release, and you are cautioned
not to place undue reliance on any forward looking statements which
speak only as of the date of this press release. The company assumes no
obligation to update or alter the forward looking statements whether as
a result of new information, future events or otherwise.
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