News and Research on Giant Interactive Group, Inc. (GA)
Business Description
Giant Interactive Group, Inc. engages in the development and operation of online games in the People’s Republic of China. The company develops and operates online games through its subsidiary, Shanghai Zhengtu Information Technology Co., Ltd. (Zhengtu Information), and its variable interest entity subsidiary, Shanghai Zhengtu Network Technology Co., Ltd. (Zhengtu Network). The company focuses on massively multiplayer online (MMO) games that are played through networked game servers in which various players simultaneously connect and interact.
Games
The company operates three MMO games, all of which it developed internally, including ZT Online, ZT Online PTP, and Giant Online. The company has also acquired the intellectual property rights to K III, which was developed by Lager Network, a Taiwan-based game developer. It marketing network consists of approximately 250 liaison offices located throughout China.
ZT Online: ZT Online (Zheng Tu in Chinese) is a two-dimensional online role-playing game set in ancient China. The company commercially launched its first free-to-play MMO game, ZT Online, in January 2006. It has developed proprietary technology for use in ZT Online that allows up to 40,000 players to play together in a single shard at any given time. ZT Online allows players to purchase a range of virtual products and services for their characters using their gold and/or silver coins. These include weapons, clothing, pets, ceremonies and rites, and others. The company licenses ZT Online to Lager Network Technology Co., Ltd. for operation in Hong Kong, Macau and Taiwan. As of June 30, 2007, ZT Online had 2,096,870 quarterly active paying players.
ZT Online PTP: ZT Online PTP is a pay-to-play MMO game to be developed by the company and is based on the ZT Online free-to-play game. ZT Online PTP requires players to pay to play the game by purchasing physical or virtual prepaid game cards on its official game Web site or from Internet cafes and other distribution points. The company commenced its closed testing of ZT Online PTP in August 2007, and intends to commercially launch the game.
Giant Online: Giant Online is a military-themed MMO game. Giant Online would feature multiple shards, and would also enable players to travel between different shards. Giant Online would enable up to 1,000,000 players to concurrently play in the same shard. Giant Online enables players, and groups of players, to purchase a range of virtual products and services. These virtual products and services include weapons, vehicles and pets. The company intends for Giant Online to be the free-to-play MMO game in China. Giant Online is a ‘2.5 dimensional’ game. The company commenced its closed testing for Giant Online in June 2007, and intends to commercially launch Giant Online.
King of Kings III: In addition to ZT Online PTP and Giant Online, the company has one game in development, K III. K III is a three-dimensional online role-playing experience set in a European-style magical world.
Competition
The company competes principally with the following three groups of competitors in China: domestic online game developers and operators in China, including CDC Corporation, Kingsoft Corporation, Perfect World Co., Ltd., Shanda Interactive Entertainment Limited, Tencent Holdings, Ltd and The9 Limited; Internet portal operators in China, including NetEase.com, Inc. and major Chinese Internet portals; and overseas online game developers, including Blizzard Entertainment, Nineyou International Limited and Webzen, Inc.
The company’s MMO games are competing with the following MMO games in China: Fantasy Westward Journey, developed and operated by NetEase.com, Inc.; World of Warcraft, developed by Blizzard Entertainment and operated by The9 Limited in China; Tian Long, developed and operated by Sohu.com Inc.; Zhu Xian, developed and operated by Perfect World, Co., Ltd.; and MIR, developed and operated by Shanda Interactive Entertainment Limited.
History
Giant Interactive Group, Inc. was founded in 2004.
