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Rumor: The9 to Abandon National Distributor System

Beijing News, 8/06/08

Sources at online game developer and operator The9 (Nasdaq: NCTY) have confirmed the company is preparing to abandoned its national distributor system for its game cards, and will instead focus on developing local distributors by itself. A source connected to senior management at The9 claims the company began adjusting its sales channels in May in response to a downturn in profits as well as a change in the buying habits of users. He explained that users have been switching to purchasing virtual rather than physical game cards, hence reducing the need for a comprehensive distribution network.

Keywords: strategy distribution game developer Internet NCTY sales The9 game card online gaming

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