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Rumor: Kingsoft Games to Reveal Restructuring Plans

17173.com, 1/17/11

An industry source said today that Chinese software and game maker Kingsoft (3888.HK) has finished shareholding and corporate restructuring plans for its subsidiary Kingsoft Games, to be announced this week. Kingsoft Games will function under a "one company, two systems" policy with the company split into Kingsoft Games' Beijing base and its Season Studios in Zhuhai.

Season Studio will structure its organization around small project groups, splitting its approximately 500-employee studio into several teams of 20 to 30 people. Based on project requirements, each group will be responsible for one or two pieces of core project functionality, with a product development cycle of 5 to 6 months before market release and an ambit to continually update offerings and strategies according to market demand.

Kingsoft Games will implement a stock-partnership system, with GM and higher-level management at Kingsoft Games all having the opportunity to receive shares in the company. Kingsoft Games CEO Zou Tao reportedly suggested this system after Lei Jun's return to the company, but the suggestion is rumored to have faced obstacles within the company.

The source said that Kingsoft Games president Wu Yimin and CEO Zou Tao, the former in charge of operations and the latter overseeing product R&D, have been at odds within the company. Last year Zou's products division had difficulty getting its games into operation, and insiders say that Wu plans to strengthen his position by increasing the number of licensed games operated by Kingsoft Games.

Editor's Note: For more background on this topic, please see "Kingsoft Games Settles Restructuring Plan" MD 12/31/10 issue.

Keywords: online gaming Lei Jun Zou Tao Kingsoft corporate restructuring Internet R&D 3888.HK Wu Yimin licensed game strategy Season Studio

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