Sohu's New MMORPG in Beta - Analyst Blog
April 01 2013 - 7:10AM
Zacks
Sohu.com’s
(SOHU) online gaming subsidiary
Changyou.com (CYOU) recently
announced the open beta version of the upcoming new game Dou Po
Cang Qiong. Players will be able to access the beta version of
the game from Apr 10, 2013 onward.
Developed by Changyou, the new game
is based on a popular online novel of the same name. Dou Po
Cang Qiong is a 2.5 D massively multiplayer online
role-playing game (MMORPG) powered by the PyroEnigma game
engine.
Changyou continues to launch new
MMORPG’s such as Dou Po Cang Qiong, on a frequent basis,
which expands its product portfolio in a highly competitive Chinese
online gaming market. This will not only help Changyou to maintain
its existing customer base but also attract new subscribers.
This is particularly evident from
the fact that aggregate registered accounts for Changyou's games
jumped 41.0% from the year-ago quarter and 11.0% sequentially to
248.1 million in the recently concluded fourth quarter.
Moreover, the addition of new games
significantly reduces Changyou’s dependence on Tian Long Ba
Bu (“TLBB”), its longest running MMORPG in China. Sohu expects
to release four expansion packs for TLBB in 2013.
Besides Dou Po Cang Qiong,
Changyou plans to launch at least a couple of new MMORPG’s and a
number of new web games. We believe that this strong product
pipeline will drive Changyou’s as well as Sohu’s top-line growth
going forward.
Online games contributed
approximately 54% of total revenue and surged 32.0% year over year
in 2012. Online gaming revenues grew on the back of expanding user
base and improved monetization.
For the first quarter of 2013, Sohu
expects online game revenues to be in the $160.0–$165.0 million
range, representing 26% to 29% year-over-year growth. Revenues are
expected to increase in the range of 1.0% to 4.0% sequentially.
We believe that Sohu’s innovative
product pipeline, strong gaming monetization base and incremental
revenues from Sogou will drive top-line growth in the near term.
However, increasing operating expenses and stiff competition from
the likes of Baidu (BIDU) and
Youku Tudou (YOKU) will keep
margins under pressure going forward.
Currently, Sohu has a Zacks Rank #3
(Hold).
BAIDU INC (BIDU): Free Stock Analysis Report
CHANGYOU.COM (CYOU): Free Stock Analysis Report
SOHU.COM INC (SOHU): Free Stock Analysis Report
YOUKU.COM- ADR (YOKU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Youku Tudou Inc. American Depositary Shares, Each Representing 18 Class A Ordinary Shares. (NYSE:YOKU)
Historical Stock Chart
From Jun 2024 to Jul 2024
Youku Tudou Inc. American Depositary Shares, Each Representing 18 Class A Ordinary Shares. (NYSE:YOKU)
Historical Stock Chart
From Jul 2023 to Jul 2024