The9 (NCTY) - notes from the Q4 2004 conference call

| About: The9 Limited (NCTY)

The9 (ticker: NCTY) announced Q4 2004 results today. Here are some key points from the company's conference call:

  • NCTY will announce a major marketing campaign with Coca-Cola (ticker: KO) in March. The campaign will revolve around the company's new online game World of Warcraft (WoW). Financial details were not disclosed.
  • Management remains incredibly optimistic about WoW's prospects. They are encouraged by WoW's success in the US and Korea.
  • Management dispelled concerns that many PCs in China are incapable of operating WoW.
  • They haven't seen any signs yet of pirated servers running WoW.
  • Blizzard, WoW's developer, does not allow the bartering of game objects from the WoW. Some Chinese online game companies have setup forums for gamers to do this.
  • Management sees a major shift in the location of game playing. 60% of gamers are now playing from home - on their PCs - and the remaining 40% are playing in Internet cafes. This represents a major increase in gamers playing from home.
  • Management is also seeing a major shift from 2D to 3D games.

Quick thought: Please post any important points that I may have missed. Thank you.