简介

■ A pyramid market. We forecast China’s online game market will grow

37% YoY in 2009 and 32% YoY in 2010. In the three-tier China online game

market, we rate Perfect World, Changyou and Tencent as OUTPERFORM,

with Perfect World and Changyou the top picks of the sector.

■ CS ways to choose right game companies. Different from the market view,

we prefer using ACU for long-term revenue forecasts, instead of APA/ARPU.

In order to achieve sustainable game portfolio growth, we recommend

investors choose game companies that focus on: 1) high quality

management; 2) top online games in the portfolio (mainly in terms of ACU);

3) sustainable game pipeline; 4) developing a diversified portfolio; and 5) the

right mix of self-development and licensing games.

■ Game league table 2.0 launched. After the success of the Credit Suisse

China Online Game League Table 1.0, we launch the second generation of

Credit Suisse China Online Game League Table to improve tracking

accuracy. Game League Table 2.0 includes three game data sources:

1) Baidu’s online game index; 2) the BarChina click rate table; 3) the 17173

software downloading chart. Both Baidu and BarChina are primary data