Shanda Games Teams up with Taobao.com
Feb 25, 2013 (SinoCast Daily Business Beat via COMTEX) --
Shanda Games Ltd. (NASDAQ: GAME), the online game unit of Shanda Interactive Entertainment Ltd., co-announced with Taobao.com, the biggest C2C ecommerce website in the Chinese mainland, on February 22 that they would launch all-round strategic cooperation in the field of Internet, an effort to build a B2C mode integrating online games and ecommerce.
The cooperation will start from client-side online games and Chen Fang, vice president of Shanda Games, disclosed in an interview that it was huge flow and user size of Taobao.com that caused it to make such a decision. In addition, the partner would provide better service to it in the field of logistics and users of it would get better user experience. The cooperation would well consolidate resources of both sides and Rift: Planes of Telara, a 3D MMORPG developed by US-based Trion Worlds and operated by Shanda Games in the Chinese market, would be launched as the first trial product. In detail, Taobao.com would as the first one and also the sole one trigger the sale of client side for open beta test of the game and the tag would be only CNY 1. All virtual products of Shanda Games would involve in the cooperation and this year, a list of other games including Final Fantasy 14 would be launched.
Shanda Games cooperated with Chinese online retailer Yihaodian.com last year, but the cooperation seemed to do little good to it finally. In line with industry observers, Shanda Games has no other choice but to make such a decision as compared with online Chinese retailers such as 360buy.com and Taobao.com, its user size is much smaller. It has been affected by explosive growth of the mobile Internet and should open up cooperations gradually and expand emerging channels. Data from Enfodesk shows that in the Chinese online game market, size of the client-side game sector, the webpage game sector and the mobile game sector each rose 19.5 percent, 76.6 percent and 41.8 percent year on year in 2012.
Actually, both 360buy.com and Dangdang.com have entered the online game market since last year. Suning.com, the B2C unit of Chinese home appliance retailer Suning Appliance Co., Ltd. (SZSE: 002024), said at the start of this year that it planed to foray into the market, too and did not rule out the possibility of entering into a partnership with an online game firm in the near future.
Taobao.com launched an online market for virtual equipment last June and Ren Wei, an executive with it, said that trading value of the market reached CNY 27.6 billion last year, ranking No.1 in the industry.
(USD 1 = CNY 6.23)
Source: www.nbd.com.cn (February 25, 2013)
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