Monday, July 25, 2011

Sohu swim year "play" out of 2 billion yuan profit of 590,000 yuan per capita

The reporter Dong Changqing

"A group of young people, but the total number of 2,000, only several layers of office space resources, the creation of profits equal to the sum of the past several large state-owned enterprises, which in the past is unthinkable."

Shijingshan District officials make a "unthinkable" is called "Sohu tour" of the online game company. Its predecessor was the Sohu games division, in 2008 settled in Shijingshan. Year operating income of 10 billion, paid for the Shijingshan District, nearly 300 million yuan of tax. The adjustment is in the relocation of Shougang, revenue for the area over the same period 28 million. "If there are 10 such enterprises to Shijingshan, you can make up for the relocation of Shougang to bring the 'loss'." The official calculations.

Profit of 590,000 yuan per capita

The end of April this year in the U.S. Nasdaq-listed Sohu tour announced first-quarter earnings report: January to March, revenue totaled $ 97.1 million, an increase of 35%. If this figure is not beautiful, $ 52.8 million net profit, 54% profit margin, then the people themselves.

In the first quarter, the company employs 2,300 people, equivalent to per capita to create a $ 92,000 a year (about 59 million yuan) profit; office area of ​​21,800 square meters, the profit per square meter a year to create nearly 10,000 dollars. The Beijing 2010 per capita GDP was more than $ 10,000.

"Great French writer Gustave Flaubert said, the more forward, more artistic to scientific, and science and art should be." Vice president of Social Sciences in Beijing, Zhongguancun Innovation Development Research Institute, said Zhao Hong, cultural and technological innovation a combination, will burst out of energy. Online games, is an embodiment of a combination of both.

Sohu tour explained in a quarterly, online games operating income increased primarily due to online game "Tian Long Ba Bu" players in the country continued to be welcomed. Sohu previously disclosed in the prospectus swim, game of the fourth quarter of 2008 alone, China's domestic revenues reached $ 56,410,000.

5 years to build the "suck Golden King"

Sohu tour this become "sucked Golden King" game, a few years of independent research and development results. "In 2002, China's online game market comes from overseas, many companies take the agency route." Sohu tour Wei Huang, vice president, said Sohu games division was set up, from a start position for independent research, the first goal is to " Tian Long Ba Bu. "

However, the development of the road, but over the thorns.

"At that time can not now, not many domestic universities professional animation and games, online games do people mainly the United States and Japan." Latitude memories, the game division's members are halfway decent, and art to make IT-based , even the game division head, Sohu CEO Wang Tao is also a school tour of electronic engineering.

Grave shortage, lack of funds. "The first two years of research and development of the most difficult, the team only a few dozen start-up period, no income, the division has been Sohu's investment department." Huang Wei said that the difficulties lie in front of multiple, can be accepted after the release of the game also doubtful, the game division of some key employees chose to leave.

All these have failed to shake the entrepreneurial team's determination to do independent research boutique. 5 years later, the game to market. Sophisticated art making, user-friendly features designed to enrich the life skills ... ... to play a lot of new multi-point, the players create a virtual martial arts world, to be favorable for the player. Subsequently, Sohu tour for the "Dragon" has launched a series of information films, games, community and sustainable development of the player groups, growing profit point.

Valuable virtual items

Since the launch of four years, the game has been one of China's most popular online games. "A popular game for four years, and the numbers continued to increase, which made online games in is rare." Huang Wei said. "Dragon" hot, but also to the successful listing of Sohu tour.

Currently, Sohu tour of the game is no charge, income mainly by selling virtual items. But do not underestimate the virtual props, 2010, Sohu tour of the $ 327.1 million of total revenue, equivalent to 20 billion yuan, representing an increase of 22% the previous year, net profit of $ 174.9 million, both record total revenue and net profit high.

"Dragon" a great success and further strengthened the confidence of independent research and development Sohu tour. In the "Dragon" released that year, Sohu tour that began "The Deer" R & D, 4-year total cost of $ 80 million collection of local and South Korea game talents to Hollywood film-fantasy 3D effect . Last week the game was released.

"Elements into the online game industry has undergone fundamental change from the past, traditional industries of energy and material inputs, into knowledge and creative input, not to spend extra energy, so that revenues and profits are green." Zhao Hong said.

The reporter Dong Changqing

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