So why are investors running for the exits?
- The9 (ticker: NCTY) agreed to make extensive royalty payments to Vivendi, the parent company of game developer, Blizzard. So, The9 will presumably be handing over the bulk of the economics of this agreement to Vivendi. More here.
- Despite achieving roughly 600,000 subscribers in the first week of beta testing, Blizzard was forced to deal with some unanticipated infrastructure issues. See interview with Blizzard employee here.