Check on China: The9 Limited

It could be said that video games are to today's generation what board games were to past generations. But games have come a long way since cardboard and dice. Unlike the simpler forms of past entertainment, modern video games have transcended weekend family fun to become a part of everyday life for many young people. The meteoric rise of video gaming is not exclusively an American phenomenon; there are legions of followers the world over.

In China, ever-growing PC and Internet usage along with blistering-fast broadband networks have spawned large online entertainment communities filled with tech-savvy gamers. Today, Chinese youth spend hours at home and in Internet cafés fixated on massive multi-player online role-playing games (MMORPGs, for short), where huge numbers of players create their own unique characters and engage in complex adventure and fantasy games.

Chinese online game developer and operator The9 Limited (Nasdaq:NCTY) has used its gaming-design smarts and huge following to become a major force in the multiplayer online gaming business. The9's primary business is subscription-based MMORPGs (The9 has licenses to own and operate seven MMORPGs in China, which may be accessed from any location with Internet access). The company’s MMORPGs include the immensely successful World of Warcraft, an engaging online full-view 3-D game with over 1 million users. The9 also offers other products and services such as game operation support, short message service, Web solutions and advertising services, and sales of Pass9, the company’s integrated membership management and payment system.

As reported May 19 the gaming company's first-quarter 2008 profit surged 36% on higher subscriptions, reaching $12.8 million, or $0.46 per share, while revenue shot up to $65.9 million, a 64% increase over the year-ago quarter. Analysts expected . . .

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