Former Ourgame CEO Blames Decline on Searainbow
DoNews, 3/15/10
Xie Wen, former CEO of Chinese online game developer and operator Ourgame, said the company is currently only worth USD 50 mln, and that its parent company Searainbow Holding (000503.SZ) is responsible for Ourgame's current situation.
Xie believes that Ourgame's most valuable asset is its loyal user base, the value of which he estimates to be USD 50 mln. Xie said he doesn't believe that Ourgame's other assets, such as its massively-multiplayer online games, contribute substantial value to the company.
According to company data, Ourgame had nearly 200 mln registered users in August 2009, with over 10 mln online users per week, 15 mln active users each month and PCU exceeding 600,000 users.
Xie said Searainbow has made serious errors by failing to provide Ourgame with enough long-term investment and failing to make good management decisions about personnel or strategy, which prevented Ourgame from making any significant breakthroughs. Xie said Ourgame's market share dropped from 85% in 2000 to less than 1% in 2010.
Ourgame has reportedly already begun downsizing and canceling certain projects.
Keywords: Searainbow 000503.SZ Ourgame Xie Wen Internet market share active users PCU registered users online gaming
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