World of Warcraft profits on the rise in China
by Anne Stickney 
Nov 17th 2011 at 8:00PM
Sister site Massively reported earlier today that World of Warcraft isn't just doing fine in China, it's doing extremely well. According to Gamasutra, the Chinese WoW operator NetEase just posted its Q3 revenue for the year, and the profits are doing nothing but rising. This is a little surprising given the information from the Activision Blizzard investor call earlier this month, which reported a loss of subscribers, mainly in the east.
Regardless, NetEase posted revenues of 2.0 billion Chinese yuan, up 39.8% -- a substantial number. In China, it seems that World of Warcraft is still a force to be reckoned with, dropping subscriber numbers or not.
Regardless, NetEase posted revenues of 2.0 billion Chinese yuan, up 39.8% -- a substantial number. In China, it seems that World of Warcraft is still a force to be reckoned with, dropping subscriber numbers or not.
Filed under: Blizzard, News items
Reader Comments (Page 1 of 2)
Gobuywow Nov 17th 2011 8:11PM
That's why there is Pandaren in 5.0
Zankoku Nov 17th 2011 8:13PM
......thats just bad taste man....
That's like saying they are adding in Burritos to attract the hispanic community
yagamimoon Nov 17th 2011 8:41PM
I don't feel offended at all by the burritos comment xD
And about topic: It is quite possible to get profits on chinese market but losing subscriptions in the East. East is not only China, you know :)
cygnus Nov 17th 2011 9:48PM
Bad taste? Damn the day I can cook burritos is the day I level cooking on all my toons... although I would rather cook tacos...
mmm, tacos...
Durandal Nov 17th 2011 11:31PM
It's really funny that people simply forget or actively ignore that Activision Blizzard is first and foremost a business which is expected by their investors and shareholders to maximize profit. Thus, with regard to the biggest and quickest growing customer base which is located in China, of course it's no big surprise that they put the next expansion into an asian setting. But there's nothing wrong with it because if it's a success in a huge and growing market, the future of the game is secured and that's how we as players profit from this marketing strategy as well.
Nathanyel Nov 18th 2011 3:15AM
Hmm, Sauerkraut... but seriously guys, this stuff is disgusting. Bratwurst, on the other hand...
Chris W Nov 18th 2011 7:48PM
Interview with Blizzard CEO Mike: We have a panda for the Chinese market
OK found chinese WoW? site & chat with Blizz pres. Michael Mohaime who they call Maike Mo Han.
Some quotes from swell Maike Mo Han:
Yesterday I received some feedback of Chinese gamers, they said the game will feel very excited about the introduction of Panda.
I also think it makes the game more popular in the Chinese market.
We also have their own in the Shanghai office, the culture of review for sensitive issues can be resolved faster and better.
___
1) go to translate.google.com
2) set from chinese and to english
3) enter blizzcn.com in text box
on left bottom search for "interview with Blizzard CEO Mike: We have a panda for the Chinese market"
Chris W Nov 18th 2011 8:06PM
The expansion after MoP is scheduled for the end of 2013, 2 years away.
So you have to ask yourself, if I buy the xpac for about $40, and pay about $15 a month for 2 years, that $400.
Is $400 worth for nothing but pandas?
Do you REALLY think the annual agreement just before the panda xpac was a coincidence?
Pyromelter Nov 17th 2011 8:14PM
I'm with many posters on the massively site. This information calls into question how many of those subscribers were lost from the east/chinese market, as was claimed by Activision/Blizzard on their quarterly results call.
The only way this makes sense is that Korea, Japan, Taiwan, and other Asian countries lost significantly more subscribers than China gained. Which I guess is a possibility, but it still seems pretty suspect to have 2 seemingly contradictory data points.
(Well there is another way this makes sense, and that is if Netease is flat out lying about their revenues.)
Is there some way someone from massively or wow insider can contact a blizzard PR rep to get a response to this seemingly contradictory data?
Carlos Nov 17th 2011 8:18PM
I'm willing to take a guess and say NetEase is exaggerating their profits a bit. I'm sure Securities rules are a bit more lax, and I'm sure operating costs are much lower in most parts of Asia.
It's not contradictory if you consider that Asia as a whole is a completely different animal to operating in the US.
Diop Nov 17th 2011 8:38PM
What I think you need to remember is two things 1) Cataclysm only came out in China on July 11th this year and 2) unless I'm mistaken (and correct me if I am), China has a pay as you play model, instead of subscription. So these profits could be explained by people playing a lot more working through cataclysm content, and it makes the scenario that subscription numbers in china have held, or possibly increased, whereas in other eastern territories declined, since they've had cataclysm almost a year, more viable.
Saeadame Nov 18th 2011 7:14AM
Um, since Asia does have the hour-type subscription model, doesn't it make sense that there are fewer people playing, but for longer periods of time? I don't know why the amount of money made in China would have to equal a proportionate decrease in subscribers elsewhere. Subscribers and amount of money made are related, yes, but in a much different way in Asia than in the US (where fewer subscribers would automatically equal less money, just by the nature of how the subscription works). There's less people playing, but because they pay by the hour, for Blizz to be making more money they must be playing more. (Could be wrong, of course, but that's just what my thought is.)
Murdertime Nov 18th 2011 7:30AM
Also keep in mind that the quarterly profit discussion is for the benefit of their shareholders and investors rather than for the freaking Blizzard Kreminology that people love to engage in. Serious, grown up people who want to hear actual financial information.
Carlos Nov 17th 2011 8:15PM
Really, a rise in profits for NetEase doesn't necessarily translate to direct profits for Blizzard. For one, is the game run the same way in the East? And does NetEase provide the same level of service and support as Blizzard NA/Euro. We all know there are plenty of ways to maximize profits.
jfofla Nov 17th 2011 8:21PM
HATER WARNING!!
Incoming Sub Increases in Q4!
Grendalsh Nov 17th 2011 8:22PM
Remember that China only recently regained access to WoW due to the Wrath artwork/hosting service fiasco. Meanwhile the other countries on the list have been merrily keeping pace with the US. So it's possible for Chinese subscription to be in recovery, while the rey for Asia is doing the pre 4.3 slump.
razion Nov 17th 2011 8:29PM
This makes sense to me. Increased profits can mean lost subscriptions in the same quarter--I mean think about it: start of the quarter they were subscribed, but by the end of the quarter, they lost subs. They gained the money for the subs for the start of that quarter, but by the time it came to count subs, they were already gone.
At least that's what it sounded like to me. :/ It's probably more likely that NetEase was lying.
Deidare Nov 17th 2011 9:05PM
I for one, am not Asian (I'm related, not by blood, to a few), and I'm pumped for Pandas! So now that we've that the horrid stereotypes out of the way, can we start explaining real reasons of why we actually dislike this game (or like it, such as my case)? I hope, oh how I hope for the love of god, that when MoP finally comes out, it will silence haters; or at least kind of scare them off. I'm looking forward to trying a new race, new class, and even the pet system. What am I looking forward to the most? Well, I really can't want to dig into what seems to be an awesome horde vs. alliance story surmounting, and I'd love to see all the Asian influenced zones right now. But what I really want to try is the new over-looked battlegrounds. Blizz is adding a team fortress 2 style mine cart game, a king of the hill style BG, and a incredibly secret DoTa style BG. It'll be wicked! I'll raise my Pandaren stein to MoP! And I hope others will too!
Curzen Nov 18th 2011 10:09AM
The Pandaren starting zone looks awesome. The 85-90 content sounds promising. It's the tired old crap between those two that'll make me want to slash my wrists.
dbriggs304 Nov 17th 2011 10:06PM
And thus MOP is fully explained.