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Rumor: Taobao to Co-Operate Online Game

DoNews, 6/30/10

An industry source has revealed that Chinese B2C and C2C e-commerce company Taobao is making a trial foray into joint operation of online games. Qin Yu, general manager of Hangzhou Snow Wolf Software, a game developer under Giant Interactive's (NYSE: GA) Win@Giant angel investment plan, said that she had received an invitation from Taobao's Jiangsu branch, and will travel to Shanghai tomorrow to discuss cooperation.

Qin said that Taobao has suggested two possible methods of cooperation with Snow Wolf: a Commodity Promotion Solution (CPS), or joint operation of XT Online. Qin said that Snow Wolf is leaning toward the CPS option, as neither Taobao nor Snow Wolf had ever jointly operated a game in the past, and it would be best to start by staying on the safe side. "But anything is possible," Qin added.

Qin said that were the two to cooperate on a CPS model, Snow Wolf would provide Taobao with a data client that Taobao could use for segmented user statistics. Qin did not reveal additional details on the possibility of a joint operation model.

Qin said that XT Online currently has peak concurrent users (PCU) of around 50,000, and will begin partnerships with companies in the soft drink and fast food industries.

Qin said she was unaware of today's rumors that Alibaba chairman Jack Ma had invested in a Hangzhou-based online gaming company.

Keywords: Qin Yu Snow Wolf Giant Interactive online gaming Jack Ma e-commerce Taobao Internet GA Win@Giant PCU XT Online

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