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Changyou Company Profile

Changyou Company Profile

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Cyou Company Presentation V3 Presentation Transcript

  • 1. Company Presentation
    May 2010
  • 2. About Changyou
    Changyou (NASDAQ: CYOU) is a leading online game developer and operator in China, principally focused on MMORPG development and operation.
    Subsidiary of Sohu.com Limited (NASDAQ: SOHU)
    Market cap.: US$1.7 billion*
    FY2009 revenues: US$267.6 million
    Key operating metrics**
    Aggregate registered users: 87.40 million
    Aggregate APA: 2.4 million
    ARPU: RMB201
    2
    • As of February 25, 2010
    ** For the quarter ending March 31, 2010. APA refers to active paying accounts. ARPU refers to average revenue per active paying account.
  • 3. Sohu
    • Leading internet brand in China with over 10 years operating history
    3
    Sohu – Leading Internet Brand in China
    www.sohu.com
    Leading Chinese
    internet portal
    • Sole official sponsor of the 2008 Beijing Olympic games
    • 4. Large user base of over 290 million registered accounts
    www.sogou.com
    3rdgeneration search engine
    www.goodfeel.com.cn
    Wireless value added
    service provider
    Sohu Group
    • Over 250 million daily page views
    17173.com
    • Chinese gamers’ top choice for game information
    • 5. 30 million registered accounts, 70 million daily page views and 4.5 million unique visitors
    www.chinaren.com
    First Chinese youth
    online community
    www.17173.com
    Leading game
    portal in China
    www.focus.cn
    Real estate
    information portal
  • 6. Why Changyou?
    Ability to Build and Extend Product Lifecycle
    Successful Game Franchise
    Strong Game Development Capabilities
    Extensive Marketing Network
    4
    1
    2
    3
    4
  • 7. Ability to Build and Extend Product Lifecycle
    5
    Feedback center and customer service team
    • 17173.com’s professional game editors test our games prior to launch
    • 8. Collect game players’ feedback through multiple channels
    • 9. In-game instant messaging
    • 10. 24-hour telephone hotline
    • 11. Online and offline research
    • 12. Online surveys
    • 13. Online discussion forums
    • 14. Events for game players
    Most popular online game portal in China
    Data Collection
    • Over 520 game development personnel
    • 15. Develop and release regular game updates once a week and expansion packs every few months
    • 16. Review game players’ and game testers’ feedback
    • 17. Timely communicate game player’s feedback to product development team
    • 18. In-depth analysis of industry data
    Analysis and Integration
    Application
    Game operation team
    Product development team
    Feedback-driven game development creates successful game franchises with consistent growth.
  • 19. TLBB – A Successful Online Game Franchise
    6
    TLBB ranks in the top 3 surpassing both WoW and AION.
    * Source: www.barchina.net, based on a survey of over 40,000 internet cafes in China
  • 20. DMD – A Highly Anticipated Game
    7
    Success factors behind TLBB
    Lessons learned from competitors
    • Focus on game-playing experience and extending lifespan of our games
    • 21. Frequent game updates and release of expansion packs based on game players’ feedback
    • 22. Strong development team inherited from our successful in house developed game, TLBB
    • 23. Sufficient time for game development and internal testing before commercial launch
    2010 Most Anticipated Online Game by Game Players (Second Place)
    – Annual China Game Industry Conference, 2009
    • Extensive analysis of game players’ demands to introduce innovative game features
    • 24. Strong sales team in second and third-tier cities
    • 25. Systematic management of distribution of ads to significantly increase their effectiveness
    • 26. New game style – cartoon-style graphics with selectable 2D, 2.5D and 3D graphic modes
    Effective marketing strategies
    Differentiating game features
    We believe that these are the building blocks for success for DMD.
  • 27. Extensive Marketing Network
    8
    Pre-launch game review
    Marketing support
    Large user base
    • Direct links to our games on the Sohu portal
    • 28. Advertisements for our games on Sohu’s 17173.com, the leading game portal in China
    • 29. Our games are reviewed and critiqued by 17173.com’s experienced game editors prior to their launch, thereby improving the quality of our games
    • 30. Tap into Sohu’s290 million user base by marketing across the Sohu Group and through Sohu’s single-user ID system
  • Overseas Office Distribution
    U.K.
    U.S.
    Beijing
    India
    Korea
    Veitnam
    Malaysia
  • 31. Why Changyou?
    Understand game development
    Respect creativity and quality products
    Market intelligence and localization support
    Extensive feedback collection system and game reviews, if required
    Abundant operation and technical experience
    Subscription-based to MTX conversion, proprietary anti-hacking and anti-cheating technologies
    Strong marketing platform and support
    At least 6 months market warming and US$1.5 million marketing budget during OB
    10