Giant to Spin Off New Game R&D Teams
Sina Tech, 5/07/09
Liu Wei, president of Chinese online game operator Giant Interactive (NYSE: GA) confirmed today that his company was contemplating a major restructuring as part of its strategy for new game development. Under the plan, Giant would look to spin off R&D teams focused on new game development, creating independent subsidiaries. The subsidiaries would be responsible for development of new games, with Giant then taking charge of operating the completed games. Liu explained that each game development team would hold 49% equity in its own unit, with Giant holding the other 51%.
Prior to development of the new plan, on which Giant has been working since the beginning of this year, the company also launched its Win@Giant game developer incubation plan. Through its Win@Giant plan, Giant provides outside game development teams with support in the form of capital, technology, marketing, and game operation, and then takes a share of future revenues.
Giant's new R&D restructuring plan will be applied only to newly added game projects, and only to browser games. Existing games will, for the time being, continue to be operated under the current framework, so as to ensure stable corporate earnings.
Keywords: strategy GA game developer Internet Liu Wei Win@Giant browser game Giant Interactive online gaming
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