World of Warcraft: Wrath of the Lich King (PC) > Articles
bids
10
10
World of Warcraft: Wrath of the Lich King (PC)
China Tightens Regulation On Foreign Online Game Operation
China Tightens Regulation On Foreign Online Game Operation
GamaSutra - October 10, 2009
Submitted by deftangel (291) at 7:55AM PST on October 13, 2009
The Chinese GAPP & NCA have re-iterated and apparently strengthened their regulatory powers over online games operated out of China, requiring preapproval before any game can be launched, and completely forbidding any foreign investment in Chinese operators of online games. The announcements had an immediate impact on major operator NetEase which saw its stock price fall more than 5pc. NetEase has operated WoW in China since June of this year, back online just weeks ago after months of downtime.
Discussion - Submit a comment
bids
2zeromous posted on World of Warcraft: Wrath of the Lich King (PC) at 4:39AM PST on October 15, 2009. RE: China Tightens Regulation On Foreign Online Game Operation@deftangel,
I backed out of shorting this stock about a month ago, I've forced it as low as it can go (1900 DKP) but someone with way too much money keeps buying it up to 2100 again. Now I just keep a modest sum short on this stock.
Its hard to see what this person's end game is, since they will lose money unless someone else starts buying.[ Veteran ] [ Level 21 ] [ Rank: 878 ]bids
2deftangel posted on World of Warcraft: Wrath of the Lich King (PC) at 1:29AM PST on October 15, 2009. RE: China Tightens Regulation On Foreign Online Game Operation@apujanata,
I was shorting it before the Govt. were throwing more regulation at MMO operators because in China it's not clear what is counted as a "sale". With the first expansion, it was essentially rolled into the game free of charge for existing subscribers.
If the same were to happen again, then in my eyes that would mean only new subscribers should count as "purchasing" this expansion pack.
This isn't an insignificant number as the Chinese gaming market is of course still experiencing massive growth. I don't think it's enough to get it near 20m, however. The last we heard was the post launch figure of 3.2m or so. It must be way, way above that now but at least 40% of WoW subscribers are in China. Not only are there question marks about whether those 40% would even count as sales but at least a small amount of uncertainty regarding whether it'll see the light of day at all.
If I had told Zukaus last year that WoW would be offline for a significant period of time he'd have told me I was talking rubbish.
In the real world, an increase in uncertainty, even if it was small would affect the price; i.e. NetEase's stock price dropping 5% the other day. Whatever you think about this stock, you have to concede there is more uncertainty around it than there was 3,6,12 months ago. Yet price isn't effected at all.
The foreign MMO operators are effectively a cartel. It's a very difficult market for western operators to be involved with.
If I was Blizzard I would question whether throwing money at this problem offers return on investment in terms of a) retaining existing subs and b) attracting new ones is worth it compared to making sure they don't have the same problem with StarCraft 2 & Battle.net
Still, all of my short margin is on this stock, I can do no more.[ Oracle ] [ Level 21 ] [ Rank: 291 ]bids
2apujanata posted on World of Warcraft: Wrath of the Lich King (PC) at 6:16PM PST on October 14, 2009. RE: China Tightens Regulation On Foreign Online Game Operation@zeromous,
Well, I don't have think I can afford to short this stock, since :
- there are better opportunities elsewhere, future and GLS
- limited DKP (I know I am #3, but #1 is 4.5 times my networth, and probably have lots of spare DKP)
- Government based investment is risky, since Government can easily change their mind (although I don't think China government will change their mind, but the possibility exist).[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
2zeromous posted on World of Warcraft: Wrath of the Lich King (PC) at 1:49PM PST on October 14, 2009. RE: China Tightens Regulation On Foreign Online Game Operation@deftangel,
And the stock price of a third round expansion pack, (when the original has not even come close to selling 21 million copies), pushes ever higher!
[ Veteran ] [ Level 21 ] [ Rank: 878 ]bids
10deftangel posted on World of Warcraft: Wrath of the Lich King (PC) at 7:55AM PST on October 13, 2009. Article: China Tightens Regulation On Foreign Online Game OperationThe Chinese GAPP & NCA have re-iterated and apparently strengthened their regulatory powers over online games operated out of China, requiring preapproval before any game can be launched, and completely forbidding any foreign investment in Chinese operators of online games. The announcements had an immediate impact on major operator NetEase which saw its stock price fall more than 5pc. NetEase has operated WoW in China since June of this year, back online just weeks ago after months of downtime.[ Oracle ] [ Level 21 ] [ Rank: 291 ]
About Us - The simExchange is the video game stock market and the source
for video game sales forecasts.
1
No worries Apujanata, I realize no one is going to stop in and correct this market.
The only person who can do this is Zukaus, and he is playing illogically. I have no problem pointing this out ad nauseum :)