Chinese Online Game Stocks Take a Bath

Several Chinese online game operators reported disappointing results this week. Some (like Shanda) blamed it on competition, but The9, which saw concurrent usage for WoW drop 8% this quarter, had little excuse.

Hard to say what’s happening here. A government crackdown may be partly to blame. Market saturation may be another (yes, one billion people does not mean one billion potential customers.) One wonders if perhaps service problems are also an issue… anyone know if these companies are maintaining the quality and consistency of the service?

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