Consumer China

Netease – World of Warcraft comes at a cost

  • Published 03 Jun 2010

The cost to operate China's most popular multiplayer online game is eroding margins.

Background:Netease (NTES:Nasdaq) is one of China's major internet companies, which specialises in online games and also operates a web portal. Last year, it won a battle against The9 (NCTY:Nasdaq) to operate the infamous World of Warcraft (WoW), created by Blizzard Entertainment, by offering a more favourable revenue share ratio and more advanced technological support. Netease also has a strong in-house game development team, which masterminded Fantasy Westward Journey, a popular game among younger Chinese players.

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