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In This Issue - July 2009

+ Online games market in Korea up 20%+, despite recession
+ Casual Connect in Seattle July 21-22
+ Excerpts from available Pearl Research studies

Meet up with Pearl Research at Casual Connect in July
We'll be attending Casual Connect in Seattle, July 21-22. Let us know if you would like to meet up. Contact us at research (at) pearlresearch.com or call 415-738-7660.

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- Digital Music

- Taiwan, India and other emerging markets

- Online Games Market

- Casual Games

Online Games Market in Korea Up 20%+, Despite Recession

NEW study - click link below to view Pearl Research's newly-released study: http://www.pearlresearch.com/files/Pearl_Korea_KoreaReport_090626_WEB.pdf

Pearl Research forecasts the online games market in South Korea grew 20%+ in 2008. These key findings are contained Pearl Research’s new “Online Games Market in Korea” study. Highlights from the study:

- South Korea has one of the highest personal computer (PC) ownership rates worldwide with an 80% adoption rate.

- The top five game operators in Korea in 2008 are NHN (revenues up 51% year-over-year); Nexon; NCsoft (revenues up 5% year-over-year); Neowiz (revenues up 29% year-over-year), and CJ Internet (revenues up 21% year-over-year). The robust revenue growth for these game operators, despite an economic downturn, demonstrates the resilience of online games in Korea.

- Top online games include NCsoft’s Aion and Lineage series, CJ Internet’s Sudden Attack, EA’s FIFA Online 2, Nexon’s Dungeon and Fighter and Activision Blizzard’s World of Warcraft.

Top online games portals in Korea by unique visits

While South Korea has a robust online games market, critical challenges include intense
domestic competition; a government crackdown on web board games; lack of capital for smaller publishers; and rising development costs.

The “Games Market in Korea” report provides an in-depth analysis of the Korean
online games market and contains an executive summary; 2008 to 2014 forecasts for
the online games platforms; inhibitors and drivers to growth; deep marketplace
analysis; discussion of key market players, and strategic conclusions. To purchase
this report, please call (+1) 415-738-7660 or email research@pearlresearch.com.

TABLE OF CONTENTS: http://www.pearlresearch.com/files/Pearl_Korea_KoreaReport_090626_WEB.pdf

Studies and Updates

i. Online Games Market in China

Pearl Research forecasts the online games market in China will exceed $5.5 billion in 2012. The market grew more than 63% to reach $2.8 billion in 2008. These findings are contained in Pearl Research’s new 140-page “Games Market in China” study, with an excerpt below.

Many Chinese game operators continue to be optimistic in 2009, stating that the
worldwide economic downturn has had little effect on their business. Games constitute a
small-ticket item and users have not cut back as much on this type of discretionary
spending.

Pearl Research’s findings:
- China’s most popular online game, Netease’s “Fantasy Westward Journey”
achieved 1.8 million peak concurrent users, followed by Giant’s “Zhengtu
Online” with 1.5 million users, Tencent’s “Dungeon and Fighter” at 1.2 million
users, and Blizzard’s “World of Warcraft” at 1 million. Average concurrent user numbers are also available in the report.

- Game operators in China experienced strong revenue growth in 2008. Six game
operators, Tencent, Changyou (CYOU), The9 (NASDAQ: NCTY), Netease
(NASDAQ: NTES), Shanda (SNDA: NTES) and Giant (NYSE: GA) crossed the
$200 million revenue mark.

The report contains 2006 to 2013 forecasts; inhibitors and drivers to growth; deep marketplace analysis; profiles of key market players; and strategic conclusions. Please call (+1) 415-738-7660 or email research (at) pearlresearch.com to purchase this report.

Table of contents: http://www.pearlresearch.com/files/PearlResearch_2009_Chinareport_TOC.pdf

ii. Emerging Markets: Online Games Market in Vietnam

Click below for more info about our Vietnam digital entertainment study, available now. This study tracks emerging trends, identifies any opportunities for international companies and examine lessons learned from the this emerging digital entertainment market.

This comprehensive study contains an executive summary, market forecasts, deep marketplace analysis, company profiles and strategic recommendations.

For the Vietnam table of contents, visit this link: http://www.pearlresearch.com/files/Sample_PearlResearch_OnlineGamesVietnam_0811_TOC.pdf

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