News and Research on Shanda Interactive Entertainment, Ltd. (SNDA)
Business Description
Shanda Interactive Entertainment, Ltd. operates as an interactive entertainment company in China. The company's main online game business includes the operation of online games that are either licensed from third-parties or developed in-house.
In 2006, the company's commercially launched games had approximately 2.45 million peak concurrent users. In 2006, the company commercially launched a MMORPG Archlord and a casual game Crazy Kart, and began open-beta testing for a 3D MMORPG titled Dungeons & Dragons Online. The company also started to test various in-house developed online video games for its EZ Platform in 2006.
In 2006, the company modified its EZ Center platform strategy to focus on providing PC users with console-like game experiences.
The company's operating platform includes its technology infrastructure, distribution and payment system, customer service center, game content management and marketing platform. As of December 31, 2006, the company's technology infrastructure consists of a nation-wide server network with the capacity to accommodate approximately 8.8 million concurrent online users. The company's nation-wide distribution and payment network includes approximately 316,000 distribution points for its pre-paid cards. The company's customer service system includes a 24-hour call center and a walk-in customer service center.
Content
The company's content offerings primarily consist of online games, including MMORPGs and casual games, as well as online chess and board games, a network PC game platform and wireless games. In addition, through its EZ Center platform the company plans to provide PC users with console-like game experiences. As of December 31, 2006, the company has started open beta testing of this new online video game platform.
MMORPGs: The company's MMORPGs are action-adventure based, and draw upon martial arts and combat themes. Each MMORPG creates a virtual world with in which players interact with one another inside the game.
In February 2007, the company entered into a license agreement with its affiliate, Actoz, a Korean online game developer, for the operation of Latale, a side-scrolling role playing game, in China.
In February 2007, Shanda entered into a license agreement with Korean online game developer to operate Changchun Online, a highly anticipated 3D MMORPG, in China. Changchun Online is based on the popular Chinese novel The Romance of Three Kingdoms.
Casual Games: Casual games are typically session based, meaning that a game can be played to a conclusion with in a short period of time.
As of December 31, 2006, the company offers the following casual games: BNB, GetAmped, Maple Story, Three Kingdoms, Shanda Richman, and Crazy Kart. The company has entered into a license agreement to operate Kong-Fu Masters, a domestic 3D martial arts fighting game in September 2006.
In March 2007, the company entered into a license agreement with Korean online game company Nowcom to operate TalesRunner, a 3D online sports-themed running game, in mainland China. In June 2007, the company entered into a license agreement with Korean online game developer Actoz for the exclusive license to operate X-Up, a 3D online table tennis game, in mainland China. In 2006, the company's commercially launched casual games, including the casual games operated by or played on the platforms provided by Bianfeng, Haofang and Gametea, had approximately 1,558,000 peak concurrent users.
Online Chess and Board Games: The company's casual games also include online chess and board games offered through Bianfeng. Through Bianfeng and Gametea, the company offers various casual games, including card games, board games, mahjong and simple arcade games.
Network PC Games Platform: Through Haofang, the company provides a personal computer game network to its end users. Through this platform, users of PC games are able to find and connect through the Internet with other players of the same PC games.
Wireless Games: Through Digital Red, the company develops and offers wireless games to end users of mobile phones. Digital Red has developed approximately 600 wireless games, approximately 400 of which were in distribution as of December 31, 2005. Digital Red primarily distributes its wireless games by pre-loading the games on handsets produced by mobile phone manufacturers and by downloading the games from game portal of the mobile phone service providers.
Wireless Games
Through Digital Red, the company develops and offers wireless games to end users of mobile phones. Digital Red offers approximately 500 individual mobile games and various online mobile games, for example, the mobile versions of Woool and Magical Land, to end users through arrangements with various mobile phone manufacturers. Going forward, Digital Red plans to focus on developing and distributing online mobile games.
Content on EZ Platform
The company provided online video games, music, movie and other entertainment content through its EZ Platform which it introduced in 2005. The company already has Crazy Kart and other various chess and board games available on the EZ Platform.
Significant Events
In July 2007, THQ, Inc. and Shanda Interactive Entertainment Ltd. announced a co-development and publishing agreement for an online-only version of THQ's critically acclaimed 3D Real-Time Strategy (RTS) PC game Company of Heroes. As part of the agreement, Shanda has obtained the exclusive license to operate Company of Heroes Online in Mainland China.
Competition
The company’s competitors include Netease, The9, Zhengtu, Perfect Space and 9you, as well as overseas-based Electronic Arts, NCsoft and Nexon.
History
Shanda Interactive Entertainment Limited was founded in 1999.
