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Chinese MMO Developer ChangYou Beats Expectations In Profitable Quarter

Chinese MMO Developer ChangYou Beats Expectations In Profitable Quarter

August 1, 2011 | By Frank Cifaldi

Chinese online game developer and operator ChangYou reported its fifth consecutive double digit growth quarter on Monday, reporting $54.2 million in profit off the continued success of its flagship MMO, Tian Long Ba Bu.

The $54.2 million represents a 28.8 percent increase from the $42.1 million reported a year ago. Revenue was up as well, up 35.1 percent to $105 million.

Tian Long Ba Bu, now in its fourth year, continues to grow with each new expansion pack released, according to the company. Packs were released in March and July of this year, with a third expected in September.

The company released its second in-house game, Duke of Mount Deer, on July 22 after four years of development. While player statistics were not provided, the company did say that it increased its server count from 64 to 110 over the past ten days to meet player demand. There has been no impact on Tian Long Ba Bu following its release, the company said.

ChangYou acquired a majority stake in browser game maker 7Road earlier this year to diversify its portfolio outside of traditional MMORPG games. According to the company, 7Road's DDTank continues to be one of China's top five web-based games according to search rankings.

ChangYou contributed $327 million in revenue to a $5 billion Chinese online game market in 2010, according to recent research.

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