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Giant Stops Marketing MMO, Continues Development

BiaNews.com, 9/17/08

Online game developer and operator Giant Interactive (NYSE: GA) has confirmed that it had recently halted marketing activities for its MMORPG Giant, and that the move was related to bugs recently exposed during open beta testing. After the final phase of closed beta testing, the company managed to address a large number of bugs in the game. A spokesman at the company explained that currently development of Giant is approximately 50% complete and the aim is now to bring the game up to the 70% complete mark. In order to do this, the company plans to focus its efforts mainly on game development. The open beta of the game currently has a PCU count of 340,000.

Since the founding of the company in 2006, Giant Interactive has continually invested in R&D, but currently has only 2 products: ZT Online and Giant Online. ZT Online has three different versions, a free-to-play, a pay-to-play, and a free-to-play classic version. The second product, Giant Online, is currently in-development and has not been warmly received by players.

When asked how founder and CEO Shi Yuzhu will be able to explain it to shareholders if Giant Interactive's profits fall now that he has canceled 90% of fee-based features in the classic free-to-play version of ZT Online, the spokesperson explained that reducing fee-based activities and items in the game doesn't necessarily equate to a reduction in revenues. By canceling these activities, Giant's aim is to reduce the average expenditure required per player and therefore attract new paying customers who previously were put-off by the high cost associated with playing the game. Instead of maintaining a large number of fee-based activities, adjustments to the company's fee structure that expand its total paying user base are more beneficial to the long-term sustainable development of the company.

Editor's Note: By having three separate versions of its game ZT Online, Giant is aiming to appeal to several different game player segments. The free-to-play classic version, with a reduced number of fee-paying items and activities, is positioned as an entry-level game for cost-conscious players who don't want to spend too much money on the game. The main free-to-play version is targeted at wealthier players who may not be the most skillful, but don't mind paying more money to advance in the game. The pay-to-play version is aimed at more hardcore gamers who prefer to play with others who advance via game skill rather than money.

Keywords: strategy GA Giant Giant Interactive Internet MMORPG PCU online gaming marketing

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