07.12.2007 12:30:00
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CDC Games Provides Update on Key Performance Metrics for November
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.
Total registered users across all online games of CDC Games exceeded 123
million as of the end of November. Overall revenues for CDC Games are
becoming more diversified with Yulgang revenues accounting for 56
percent of the total and the five newer games: Special Force, Shaiya,
MIR III, EVE Online and Shine Online accounting for 44 percent, as of
the end of November.
Special Force, launched in June 2007 as the first free-to-play, pay for
merchandise FPS (first person shooter) game in China, experienced growth
in key categories during November. Special Force is also ranked among
the Top-10 most popular games in China according to 17173.com. Compared
to October 2007, key metrics for November 2007 were:
Average daily revenue growth of 51 percent;
Growth in total registered users of 23 percent, now totaling more than
9.4 million;
Growth in peak concurrent users (PCU) of 14 percent; and
Growth in average concurrent users (ACU) of 12 percent.
Shaiya Online, one of the games acquired in the OPTIC acquisition in
July, also performed well, with November 2007 average daily revenue
growth of 16 percent compared to October 2007. Shaiya Online is an
MMORPG set in a fantasy world where two nations, the "Alliance of Light"
and the "Union of Fury" fight over the holy ground of "Eden."
Revenue performance of the other games acquired in the OPTIC
acquisition, MIR III and EVE Online, remained relatively stable from
October to November 2007.
One of the company’s newer games, Shine
Online, a cartoon fantasy, 3D MMORPG launched in late September 2007,
began with strong revenue performance but has exhibited a decline in
player activity and revenue during November 2007. An upgraded version of
the game is due for availability in December, and feedback from players
indicates that they are waiting for these updates to resume playing.
Yulgang, the company’s first MMORPG in China,
continues to be included among China’s Top-10
most popular online games, according to 17173.com, in its third year of
commercial availability. Recently hurt by pirated copies of the game
operated illegally in China and our reported disputes with Yulgang’s
licensor, MGame, Yulgang has experienced average daily revenues in
November that are more than 20 percent above its July 2007 levels and
that are virtually unchanged from October 2007. This recovery has been
aided by the company’s active efforts to shut
down pirate servers hosting the game. Working in conjunction with the
Chinese government authorities, law enforcement agencies, as well as
Internet operators, CDC Games now believes that less than 10 percent of
players of the pirated games remain active on those games. The company
intends to continue its efforts to eliminate the Pirate servers,
including its leadership of the OGAAP (Online Games Alliance Against
Piracy) initiative which has received strong endorsements and support
from Chinese governmental agencies regulating the online gaming
industry, as well as enthusiastic interest and participation of gaming
and entertainment companies worldwide.
"We are very happy to see Special Force
continuing to grow and gain momentum in its fifth full month of
commercial availability,” said Xiaowei Chen,
Ph.D., president of CDC Games. "As with any
new online game, we are starting from a small base of active players, so
the overall revenue impact is still relatively small in this early
stage. Based on the current popularity of Special Force and its growth
rate experienced to date, we expect it will be a significant contributor
for CDC Games going forward. We are also happy to see improved and
sustained performance of Yulgang during the past three months. We intend
to continue negotiating with Mgame executives and work with the legal
teams with the hope that we can soon settle our dispute.”
Chen added, "We are also very excited about
the start of our open beta program for Minna de Battle, our first MMORPG
for the Japan market, and the pending launch of Lunia Online in the
United States. With these new games, we intend to establish CDC Games as
a global game publisher with online games operating in three of the world’s
major markets: China, Japan and the U.S.” About CDC Games
CDC Games is one of the market leaders of online and mobile games in
China with more than 120 million registered users. The company pioneered
the "free-to-play, pay-for-merchandise" online games model in China with
Yulgang and launched the first free-to-play, pay for merchandise FPS
(first person shooter) game in China with Special Force. Launched in
2007, Special Force has consistently ranked in the Top 10 downloaded
games in China. Currently, CDC Games offers six popular MMO online games
in China that include: 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. Through its CDC
Games International (CGI) subsidiary, the company is planning launches
of Lunia Online in the U.S. and Minna de Battle in Japan along with
several new games planned for southeast Asia, further strengthening its
position 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 diversify and continue diversifying its
revenues, successfully measure, choose, collect data regarding and
evaluate key performance metrics for its games, the ability to
successfully grow in key performance areas, the ability to upgrade and
release new games and newer versions of existing games and the
timeliness thereof, our belief regarding the number of players
continuing to play games on pirate servers, our intent to continue
pursuing and successfully eliminating these pirate servers and the
effects that this may have on our future revenues, our expectation
regarding the future contributions to revenue of our games, including
Special Force, our continued negotiations with MGame management, our
ability to increase revenues for Yulgang, improve average revenue per
user (ARPU) for Yulgang, increase revenues for Special Force, 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; (b) the ability to develop
and market successfully first person shooter and other games; (c) the
future growth of the online games industry in the China market ad other
markets throughout the world; (d) the possibility of launch and
development delays; (e) the development of competing products and
technology; (f) the continued popularity and player acceptance of
Yulgang, Special Force and our other games; and (g) the continuation of
our contractual and other partners to perform their obligations under
agreements with us. 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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