Gaming News - November 2002
Shanghai, China (November 22, 2002) - SINA anonline media company and
value-added information service provider for China and global Chinese
communities today announced the signing of a definitive agreement with NCsoft
Corp. to form a joint venture to operate and market NCsoft's flagship Lineage
game in China. Lineage is the most successful online game in Asia and the most
popular game in the world with more than four million subscribers and nearly
$200 million in gross revenue in 2001.
From NCsoft:
Online games, which generate revenue from the subscription fees paid by
players, is one of the fastest growing sectors of the interactive entertainment
industry in the world. In particular, Massively Multi-Player Online Role Playing
Game (or "MMORPG") is the "stickiest" form of online games in which hundreds of
thousands of players interact with one another concurrently online. This type of
game focuses less on eye-hand dexterity and more on interaction with real human
players in real time. The games create loyal followings with significant network
effects as more and more gamers form communities and relationships with one
another. According to Forrester Research, the market for online games
constituted about 5% of the total game software market in 2001. However, it is
expected to grow at a much faster pace than the rest of the game industry and to
reach $5.3 billion in market size by 2005.
In Asia, the total online game market was estimated to be $450 million in
2001 with most subscribers concentrated in Korea, Taiwan and Japan. However, in
recent months, China, with its fast growing Internet population (already at 45.8
million users according to CNNIC's July survey) is expected to become the
largest market in the region in a relatively short period of time. According to
CCID, a consultancy under China's Ministry of Information Industry, the number
of online game players will reach 9.7 million by the end of 2002 and 14.3
million by the end of 2003.
"Online games have already become one of the fastest growing sectors of the
Internet economy in China. As the leading Internet portal, we are honored to
partner with the number one online game company in the world to bring the best
online games to China," said, Daniel Mao, CEO of SINA. "With this joint venture,
SINA has further transformed from a leading Internet portal into a truly
diversified leading online media, entertainment and value added service company
with multiple revenue sources from advertising, subscription and fees."
"SINA is a progressive company," said Tack Jin Kim, CEO of NCsoft. "It is
listed on the NASDAQ exchange and has the experience and determination to become
the number one player in the online game business in China. We believe SINA is
the best partner for us to enter the Chinese market. We look forward to a
relationship which will introduce a new and exciting era of online gaming to
China."
Introduced in September 1998, Lineage quickly became a blockbuster hit in
Korea and has won multiple awards in Korea and the world. After its successful
introduction in Korea, Lineage has been introduced into other Asian markets
including Japan, Taiwan, Hong Kong and the U.S. In Korea and Taiwan, two of the
most mature online game markets in Asia, Lineage controls close to half of the
total markets. In 2001, Lineage grossed nearly $200 million in revenue.
"We are very excited to introduce Lineage to China. The online game
enthusiasts here have been eagerly awaiting the launch of this game for a long
time," said, Yan Wang, President of SINA. "SINA has long been recognized for
operating the leading game channel in China. With our unsurpassed strength in
online game marketing and NCsoft's superior game operations and development
capabilities, we are bringing the leading online game in Asia to China, and are
providing the best service with qualities that will exceed all of our
competitors."
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