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In a news story that we’re sure will surprise precisely nobody at all, The9 — China’s previous operator for World of Warcraft — has reported a serious decline in profits for this last quarter. Since last year when The9 still had World of Warcraft in its stable of games to now, they have seen a staggering 94% drop in revenue. Since the split became final in June of this year, there was also a 91% drop between last quarter and this one. Between The9’s lawsuit against Blizzard for (among other things) software copyright infringement and selling nearly 15% of its shares to Activision Blizzard competitor, EA, The9 has pretty well ensured that there’s never going to be any kissing-and-making-up over this whole mess.

Still, not everything is completely negative for The9. In the on-again-off-again World of Warcraft presence in the Chinese market altogether, owing to the squabble between The Ministry of Culture and the General Administration of the Press and Publication (GAPP), they’ve seen an increase in players from when they initially lost World of Warcraft. According to reports, the increase — a modest bump from 3.2 to 3.4 million players — is owing largely to a new update to Soul of the Ultimate Nation, as well as their other games Sword of the New World, FIFA Online, and Atlantica Online. Now, so long as more of their shareholders don’t wind up suing them for making misleading statements about their connection with Blizzard, things might just start looking up for this former major player in the Chinese MMO market.

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The9 sees enormous drop in profits after split with Blizzard originally appeared on Massively on Sun, 29 Nov 2009 12:00:00 EST. Please see our terms for use of feeds.

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China’s General Administration of Press and Publications (GAPP) has ordered NetEase, which has been operating World of Warcraft in the region since September, to cease collecting subscription payments and signing up new players for the game immediately, calling these acts “illegal behavior.” According to a report by the site JLM Pacific Epoch, the GAPP (most recently in the news for outlawing foreign investment in Chinese online gaming) has suspended its review of the game and returned NetEase’s application to operate it in the country.

For its part, NetEase claims it has yet to receive any sort of official decree from GAPP. At the same time, an official from China’s Ministry of Culture is said to have stated that GAPP’s actions are “not appropriate.” The situation now becomes one of which agency has final say, and if it’s simply “shut it down,” why.

We’re pretty sure this isn’t the kind of Cataclysm Chinese WoW fans were hoping for.

[Via WoW.com]

Source — GAPP Halts WoW Review
Source — GAPP Says No for the Operation of WoW in China
Source — NeatEase statement regarding announcement by GAPP

JoystiqWoW ‘rejected’ in China, government at odds with itself over decision originally appeared on Joystiq on Tue, 03 Nov 2009 01:00:00 EST. Please see our terms for use of feeds.

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You can frequently get asked to prove an awful lot in MMOs — that you actually know how to beat this boss, that you really have insider access to the game developers, or perhaps most commonly that you are who you say you are. Aurora Technology over in China has apparently decided to cut out the middleman in the equation — they’re banning any male players who play female characters, requiring players to confirm their gender via webcam in order to enforce the ruling.

The ruling currently only affects the Aurora-developed game King of the World, but there’s always the possibility that this action could have further-reaching consequences. After all, Aurora is a subsidiary of Shanda, a company responsible for publishing Aion and Dungeons and Dragons Online in the region, which are names slightly more familiar to players on this side of the pond. China is a fair bit more litigious than the US when it comes to its online games, and the country as a whole has taken some surprising moves already. While this ordeal has been going on for over two years now, we can’t help but wonder if this will herald the start of some rather restrictive policies. We’re assuming that you’ll need to provide pictures or it didn’t happen.

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Chinese company bans gender-bending originally appeared on Massively on Tue, 27 Oct 2009 15:00:00 EST. Please see our terms for use of feeds.

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Online gaming revenues soared in China to 6.18 billion RMB (USD 906 million) in the second quarter of 2009, according to Reuters. They cite data from Analysys International, a research firm which states China’s online game revenues for Q2 2009 were up 39.5 percent over last year. Among the top three earners (trailing behind Tencent Holdings and Shanda Games) was NetEase, the company which is presently the licensed operator of World of Warcraft in China. Reuters states that NetEase saw revenues of 780 million RMB (USD 114 million) in the second quarter of this year.

This continual growth of online gaming in China has been a key issue with legislators in recent years. The Chinese media’s coverage of internet and gaming addiction has intensified, and there is now increased government scrutiny of the virtual currencies and economies these games have given rise to. It’s not just a China issue, as foreign companies are either operating online games in the country or have been eyeing this lucrative market. As we mentioned on Monday, the issue of regulating foreign game operation in China may be coming to a head with the current struggle between the General Administration of Press and Publications (GAPP) and the Ministry of Culture. Whatever agreement is reached between these government agencies will determine the future of foreign online game operations in the country.

[Via GamePolitics]

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Online gaming revenues soar in China originally appeared on Massively on Thu, 15 Oct 2009 12:00:00 EST. Please see our terms for use of feeds.

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