BEIJING -
Shanda Interactive Entertainment Co Ltd's motive
in adopting the free-play massively multiplayer
online role-playing game (MMORPG) model was to
maintain its leadership of China's online games
market, according to an analysis from China
Information World.
By December 2, Shanda
had made three of its online role-playing games
free of charge, including the Legend of Mir
II, the World of Legend and the
Magical Land. Experts note that the free-play
MMORPG model has been widely
accepted in the online games markets of South
Korea and the United States. It is therefore
anticipated to be similarly popular on the Chinese
market.
Although the adoption of the
free-play model will reduce Shanda's revenue in
the short-term, the company can bear the impact
with adequate capacity and sufficient funds.
According to Shanda's financial report in the
third quarter of 2005, it generated 105 million
yuan (US$13 million) from the leisure games
sector.
It is popularizing the EZ-Series
products, including EZ-POD, EZ-STATION and
EZ-MINI, which are expected to become a new
economic growth engine for the company. Compared
with Shanda, Netease.com Inc and The9 Ltd, the
firm's main competitors in China's online games
market, are weaker.
At present, Shanda and
Netease make up 70% of the total market shares,
while other online games operators only account
for 30%. Experts believe it will be difficult at
present for Shanda to seek a greater slice of the
market from midsize and small operators. However,
Shanda can maintain its market leadership by
seeking new growth areas and through innovation.
Shanda has sold 159,000 sets of the EZ-POD
since it came into China's market two weeks ago,
according to the company's announcement on
December 12. Chen Tianqiao, CEO of Shanda, is
confident of the popularization of Shanda's
EZ-Series products, including the EZ-POD,
EZ-STATION and EZ-MINI.
At present, China
boasts more than 100 million netizens but 400
million fixed phone users, mobile phone users and
TV subscribers.
Shanda released nine game
software packages based on the EZ-POD platform on
December 12, which will be put on the market
before the second half of 2006. The company will
also open the technological interface and the
technological design of the EZ-CENTER/POD to
third-party content providers.
Shanda has
prepared three million sets of EZ-CENTER software
to send, and will pack 500,000 sets with PCs.
Shanda also plans to establish 200 terminals
nationwide to demonstrate its technology.
