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China online game industry has seen another dramatic growth in 2003 According to the US- based research house International Data Corp IDC the online game industrys actual sales grew by 458 from 091 billion RMB in 2002 to 132 billion RMB US159 million in 2003 The total population of internet users in China has reached 78 million in 2003 and 138 million of them ie 18 of entire internet population are paying a fee for playing online games The total market value of online game industry was projected to reach 8 billion in year 2006 At the time Chinese internet population may reach 141 billion while online game population may be 42 million In addition to the industrys rosy future todays major players are enjoying a superior real cash flow 2 million RMB per day with a 50 profit margin Lured by the unparalleled profitability and astonishing growth potential more and more investors rushed into the industry The number of online game operators has reached 103 and more than 150 online games are currently under operation Founded in 1999 and released its first online game Legend in late 2001 Shanda has remained as Chinas online game market leader in 2003 Now carrying 8 online games Shanda is holding a dominant 311 market share which is almost twice of that of its closest follower As of end May 2003 Shanda has total 140 million registered users on its online game platform with all released games And the number of concurrent users exceeded 850 thousand across 22 provinces over 40 major cities and over 500 clusters of servers over 5000 servers as well as over 350 thousand end outlets Quoted from Shandas website Shandas success can be attributed to following factors 1Its E-Sale system an e-commerce platform enabled the companys direct connection with the most important online game retail outlet in China - net cafes 2With 1200 dedicated Game Administrators Shanda maintained the biggest customer service force
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