Tag Archive | "PWRD"

Perfect World Closed Beta Testing on Fantasy Zhu Xian


Perfect World Closed Beta Testing on Fantasy Zhu Xian

Perfect World Co., Ltd. [[PWRD]], a leading online game developer and operator based in China, today announces that it will launch the closed beta testing for its first 2D turn-based MMORPG “Fantasy Zhu Xian” on September 10, 2009.

“Fantasy Zhu Xian” is Perfect World’s first 2D turn-based MMORPG, which is based on a popular internet fantasy novel “Zhu Xian.” The game represents the world of “Zhu Xian” in a refreshing cartoon style. The game is run on the Company’s proprietary EPARCH 2D engine and can exhibit such special visual effects as “reflections,” “particle effects” and “translucency effects.” It also features a flying system that introduces a concept of altitude into a 2D game, which is very creative and advanced in terms of technology.

In the closed beta testing of “Fantasy Zhu Xian,” the players will not only experience the excitement of fighting in player vs. player turn-based battlefields, but they will also enjoy the multitude of experiences within the many instances available to the players throughout the game world. The players will also be able to engage in various round-the-clock activities in the game during the closed beta testing.

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World, commented, “‘Fantasy Zhu Xian’ is an integral part of our diversified product portfolio. Both the storyline and play modes have shown a promising market potential. I believe that ‘Fantasy Zhu Xian’ will perform well in the closed beta testing.”

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company’s strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently introduce popular games that are designed to cater to changing customer preferences and market trends promptly. The Company’s current portfolio of self-developed online games includes massively multiplayer online role playing games (“MMORPGs”): “Perfect World,” “Legend of Martial Arts,” “Perfect World II,” “Zhu Xian,” “Chi Bi,” “Pocketpet Journey West” and “Battle of the Immortals;” and an online casual game: “Hot Dance Party.” While a substantial portion of the revenues are generated in China, the Company’s games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “future,” “plans,” “believes” and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Further information regarding these and other risks is included in Perfect World’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

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Interpreting The9’s Discount: Good Deal or Hidden Troubles

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Interpreting The9’s Discount: Good Deal or Hidden Troubles

The9 Limited (NCTY) is trading at a discount relative to peers like Giant Interactive Group Inc. (GA), Perfect World Co., Ltd. (PWRD) and Shanda Interactive Entertainment (SNDA), but is this an opportunity or a warning sign for investors?

The9 Limited [[NCTY]], an online game operator in China, is trading at just 5.8x earnings which makes it one of the cheapest Chinese online gaming stocks. In comparison, the industry as a whole trades at around 14x earnings with average growth rates of 9 percent and average gross margins of 36.81 percent. So, does The9 represent a compelling value or is there a reason for the steep discount relative to its peers?

On April 16, 2009, The9 suffered a major setback when Blizzard Entertainment decided to license its World of Warcraft game to Netease [[NTES]] following the expiration of its current license agreement with The9. The percentage of revenues derived from this contract is uncertain, but as of 2007 the company “derived substantially all of its revenues from WoW.” (Source: 20-F Filing)

During the fourth quarter of 2008, The9 reported revenues of $62.7 million which was down marginally from the comparable quarter a year ago. However, net income dropped 55 percent to $6.5 million as development expenses on its proprietary games consumed a large amount of cash. Unfortunately, there have been no quarterly or annual financial results reported since the contract was lost in April of this year.

Fortunately, The9 has several other games under contract from other companies like Electronic Arts [[ERTS]]. These games includes everything from sports games like FIFA Online to its own proprietary fantasy games like Dragon Empire. Whether or not these games provide enough revenues to cover the loss of its WoW contract remains to be seen, but some investors believe the worst may be over.

In the end, the current discount can be explained by the loss of its license to the popular World of Warcraft game from Blizzard Entertainment. Meanwhile, the success of The9 going forward will largely be the result of its proprietary games in development, which include The9 City, Dragon Empire, Warriors of Fate Online, and its ability to continue in other partnerships with companies like Electronic Arts.

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