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By ANDREW SIEGFRIED

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By STAFF EDITOR

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By AMY CHEUNG

China Netcom to launch IM, Advertiser focused on InGameAd Interactive
SIG Capital and DBS form venture capital fund


By AMY CHEUNG
Telecom market research firm IDC recently released a report showing that the contribution of China's online game market to telecom revenues has increased significantly.  While foreign and local games are popular diversions among netizens, online games also serve as a marketing and sales tool for many companies.

By AMY CHEUNG
Netease.com Inc, one of China's leading online services providers, attracts people with its online game services to Internet users through the licensing and the in-house development of large multi-player online role-playing games, including Fantasy Westward Journey, Westward Journey Online II and Datang. However, its third-quarter financial report aroused concerns that with its two major games starting to decline, what can the company do to stay competitive in China’s online gaming market?

By AMY CHEUNG
CDC Games, a business unit of CDC Corporation, today announced in a statement that it has signed an exclusive distribution license in China for the online game, The Lord of the Rings Online(TM): Shadows of Angmar(TM), the official online game based on the original literary works of J.R.R. Tolkien. The agreement is between CDC Games and the developer of the game, Turbine, Inc., a premier developer, publisher and operator of online subscription entertainment in the United States.

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Online game market in China is expected to generate about 900 million US dollars in revenue this year, nearly double the 500 million US dollars in 2005, according to various estimates. Chinese gamers prefer the online format to home-based systems such as Microsoft\'s Xbox and Sony\'s PlayStation because of its pay-as-you-go nature does not require people to buy the consoles that they cannot afford. Foreign game publishers include EA have found China a tough market, despite the market\'s rapid growth and potential, due to government policies that favor home-grown players like market leaders NetEase.com Inc., Shanda Interactive Games Ltd. and The9 Ltd..

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