Businessweek

Giant Interactive Group Inc., through its subsidiaries, operates as an online game developer and operator in China. The company focuses on massively multiplayer online role playing games (MMORPGs), which are played through networked game servers on which various players are able to connect and interact. The company has built nationwide distribution and marketing networks to sell and market its prepaid game cards and game points. As of December 31, 2011, its distribution network consisted of approximately 137 non-exclusive regional distributors and reached approximately 99,000 retail outlets, including Internet cafés, software stores, supermarkets, bookstores, newspaper stands, and convenience stores. As of December 31, 2011, its marketing network consisted of approximately 421 liaison personnel throughout China. The company also licenses its games to third party operators in other territories, including southeast Asia, Japan, South Korea, Brazil, North America, Europe, Russia, and other Russian speaking territories. In addition, it licenses its ZT Online Green Edition to Shenzhen Tencent Computer Systems Company Limited (Tencent) for operation of such game on Tencent’s QQ game platform in China. In 2011, the company licensed a mobile phone version of Golden Land to Aeria Games & Entertainment Inc. and Vebanaul Holdings Ltd., for publication on the Apple Inc.’s iOS platform in North America, Europe, and Russian-speaking countries. Games The company operates 11 games, including 8 MMORPGs, 2 casual MMO games, and 1 strategy browser game. ZT Online Franchise The ZT Online Franchise consists of the company’s internally developed games under its primary ZT Online 1 Series and ZT Online 2. The ZT Online 1 Series consists of ZT Online, ZT Online PTP, ZT Online Classic Edition, and ZT Online Green Edition. ZT Online ZT Online is a free-to-play 2D MMORPG with an ancient Chinese martial arts theme, and is the first game that is wholly developed by its internal product development team. Players assume 1 of 8 different roles, including soldier and magician, in 10 different kingdoms. Players develop martial arts skills, use magical weapons, and team up with other players to fight against monsters and players from other kingdoms. In addition, ZT Online offers expansion packs and other updates to enrich the overall gameplay experience. ZT Online is free of charge to play, with virtual items and services available for purchase within the game. ZT Online allows players to purchase a range of virtual items and services for their characters using their gold and/or silver coins. These include weapons, clothing, pets, ceremonies, and rites. ZT Online offers an uninterrupted play experience, where players could choose to enter the game 24 hours a day, 7 days a week. ZT Online could be accessed from any location with an Internet connection. ZT Online PTP ZT Online PTP is a pay-to-play 2D MMORPG that the company developed. Although ZT Online PTP is based on ZT Online, ZT Online PTP requires players to pay to play the game by purchasing physical or virtual prepaid game cards from its official game Website or from Internet cafés and other distribution points. Virtual items and services are not sold in the game so players must focus on building up their characters’ experience to advance in the game. ZT Online Classic Edition ZT Online Classic Edition is a free-to-play 2D MMORPG based on the original version of ZT Online. In February 2012, the company launched a new update that allows players to various options to customize their characters and virtual items. ZT Online Green Edition ZT Online Green Edition is a free-to-play 2D MMORPG that features a different in-game economy that is based on gameplay. The game also includes additional maps, skills, and items. ZT Online 2 ZT Online 2 is an internally developed free-to-play 2D MMORPG martial arts sequel to the company’s primary game ZT Online. ZT Online 2 features new 2D graphics with added 3D particle effects that improve the visual display. Various virtual items (consumable or permanent) could be traded within the game among players in exchange for silv