Oh, and we’re not talking about some law in China but the Securities Exchange Act of 1934, the law governing the secondary trading of stocks, bonds and the like in the United States of America.

High-profile law firm Coughlin Stoia Geller Rudman & Robbins LLP has filed the class action lawsuit against The9 on behalf of its shareholders with the Southern District Court of New York.

In the complaint, The9 shareholders alleged that The9 and certain directors and officers failed to disclose that the company was unlikely to renew its licensing contract with Blizzard Entertainment for World of Warcraft. As a result of the non-renewal of the license, The9 shares dropped 18 percent to USD$8.35 on July 15th after The9 reported a USD$36.9 million or 72 percent reduction in its 2008 net income.

Since it’s a class action suit, other parties may join. In fact, the law firm that’s handling the case is encouraging other shareholders to join. Here’s an excerpt from the announcement it made regarding the lawsuit:

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via email at djr@csgrr.com. If you are a member of this Class, you can view a copy of the complaint as filed or join this class action online. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

Pretty legalese, eh. Never mind if you can’t sift through the jargon. One thing is for certain, The9’s goose is cooked.

For more World of Warcraft news, stay tuned to MMOtaku or WoW Obsessed.

Post from: MMOtaku

According to online games portal 17173, Blizzard Entertainment co-founder and president Mike Morhaime clarified that the joint venture between Blizzard and NetEase would focus on providing technical support to World of Warcraft and wouldn’t be involved in other aspects of operation.

An article on 17173 also tagged The9, former operator of World of Warcraft in China, as the culprit behind the dissemination of rumors that the joint venture was established to operate several Blizzard games.

It is forbidden for foreign companies to operate online games in China either through joint venture or sole investment.

Last month, reports pegged the issue as mere rumors that stemmed from an announcement story by Blizzard late last year that said the company was entering into a joint venture with NetEase to operate other Blizzard games on the Battle.net platform such as StarCraft, Warcraft III: Reign of Chaos, and Warcraft III: The Frozen Throne.

So what’s really going on? This issue is getting out of hand, and the truth is we have heard only from Blizzard Entertainment and nothing from NetEase and the Chinese government. Not that I’m expecting them to give any statements.

And is it true that The9 instigated the rumor? Here’s exactly how 17173 put it:

Former WoW operator The9 (Nasdaq:NCTY) has claimed that the JV was established to operate several Blizzard games …

Very petty of The9 to do that. Sour grapes? And then again, it might just be an error in translation on the part of the China-based online games portal.

Here’s my two cents worth: It’s supposed to be a non-issue. First, it’s pretty clear that Blizzard Entertainment is merely ensuring that fans of World of Warcraft are getting their money’s worth by providing quality service through, of course, its licensee NetEase. Hence, the joint venture.

Blizzard isn’t going to profit from doing that since it’s part and parcel of licensing out a massively multiplayer online game like World of Warcraft. Besides, NetEase is paying Blizzard for the license to operate the game.

Let us review the brief but drama-filled saga of World of Warcraft in China:

WoW Expansion Still Under Review In China?

China Probing Blizzard-NetEase Venture?

The9 Opens New World of Warcraft Server

World of Warcraft Prompts Hiring at NetEase

World of Warcraft Slips From The9’s Grasp

Post from: MMOtaku

All this talk, however, is premature. For one, World of Fight isn’t even a reality yet—at least, based on whatever is coming out of the rumor mill.

The speculation is built on top of two facts: that The9 lost the license to Blizzard Entertainment’s World of Warcraft to another Chinese online games operator, NetEase; and that The9 has launched a new website that says, among other things, World of Fight is coming out soon.

World of Warcraft! No, wait, it’s not!

Industry insiders are, however, correct in assuming that The9 might just be trying to retain in its fold World of Warcraft players by introducing a similar game with an almost similar title.

It’s now a wait-and-see game.

Post from: MMOtaku

About a week ago, MMOtaku reported a rumor that The9 had lost the license to the popular Western MMORPG franchise, which developer Blizzard Entertainment awarded to NetEase, another China-based online games operator. This supposedly tall tale was later confirmed by all three companies—Blizzard, NetEase and, surprisingly, The9.

Now comes news that The9 has opened a new server for World of Warcraft in China. What gives? I mean, why open a new server if you’re going to give up the franchise anyway?

Checkout the scoop from our friends at online games portal 17173:

The9 Opens New Server for WoW

Although The9 will lose the Chinese license for World of Warcraft in China, the Chinese operator is hardly giving up. Today, The9 opened a new server for WoW.

We visited the new server three hours after its opening. The players on the server act just like usual. No panic, no complaints. They seem not worried much despite the announcement of a change in operator.

Since I can’t find any suitable image to share with you guys, I’ll settle for this hilarious video—a fan-made adaptation—of World of Warcraft in China:

Post from: MMOtaku

Open Beta Test for EA Sports FIFA Online 2 to Begin on April 22, 2009, in China

SHANGHAI—The9 Limited, a leading online game operator in China, and Electronic Arts Inc., a leading global interactive entertainment software company, has announced in a press conference held at Shanghai Pu Dong Expo Center that the highly anticipated game EA Sports FIFA Online 2 will begin its open beta test in mainland China on April 22, 2009.

FIFA Online 2 is the latest online version of EA Sports’ officially licensed FIFA football video games. Built upon over a decade of success from the EA Sports FIFA video game franchise, EA Sports FIFA Online 2 features 30 licensed leagues, over 10,000 real players, 31 stadiums, and authentic team kits. The game has enhanced player controls so that gamers can direct each of their in-game team’s players to perform real football moves. EA Sports FIFA Online 2 also highly focuses on player interactivity. Gamers can set up matches, track each others’ scores, chat in the game, and enjoy other community functions. EA Sports FIFA Online 2 brings the ultimate online football gaming experience that mirrors the sophistication, finesse and beauty of the real-world sport.

“EA Sports FIFA Online 2 epitomizes a global sports game. During the closed beta test in China, it has received not only extremely positive feedback from game players but has also generated awareness and anticipation among football fans. The9 has been working actively with EA to add features that are tailor-made for local players and to prepare for all aspects of the game’s operation in the Chinese market. From April 22, gamers and football fans will enjoy the excitement about this brand new online sports game,” said Xiaowei Chen, president of The9.

For more information about the game in China, visit the official FIFA Online 2 website.

Post from: MMOtaku

Here’s the nitty-gritty from China-based online games portal 17173:

Source: China Daily

The official website of NetEase has recently posted a recruitment ad for customer service of World of Warcraft in China.

NetEase is mainly looking for game master, customer service specialist, trainer, GM leader, customer service manager, and quality assurance personnel. Specifically emphasized is the need for previous experience.

The work location is in Zhang Jiang Wei Electronic Harbor in Shanghai, which is very close to The9. The two companies are only a few buildings apart.

I smell pirates! :p

Now let’s see if this is another case of “If you can’t beat ‘em, join ‘em.”

Post from: MMOtaku

Check out the headline on China-based online games portal 17173:

The9 May Have Lost Control of World of Warcraft in China

Late yesterday, multiple sources reported that The9, the operator of World of Warcraft in China, had broken up with Blizzard Entertainment. NetEase, another Chinese game operator, is more likely to get the license instead, which will take over the operation of World of Warcraft in China this June.

The site goes on to say that it got it hands on a copy of an email from Chen Xiaowei, president of The9, to the company’s employees that claimed “some company” had made a competitive offer to Blizzard and even had the gall to ask The9 to “transfer” the operation of World of Warcraft to them.

The supposed deal for the transfer included a monetary offer of USD 22 million for the World of Warcraft China servers and USD 1 million for the staff that handles the operations.

The9’s situation is a far cry from the optimism the company showed last year just before its license to operate World of Warcraft was renewed by Blizzard.

Apparently, if the news is true, the main cause of the “break up” is the censorship and non-release of World of Warcraft’s last update, Wrath of the Lich King.

It’s a wait-and-see game for the Chinese online games industry.

Screenshot downloaded from official World of Warcraft website, copyright Blizzard Entertainment.

Post from: MMOtaku

Going back to the topic, yes, Atlantica Online is set to conquer China, with The9, the company that brought in popular Western massively multiplayer online role-playing game World of Warcraft, at the helm.

Here’s the announcement story, courtesy of China-based online games portal 17173:

The9, a leading Chinese online games developer and operator, has announced that Atlantica Online, a 3D turn-based MMO developed by NDOORS, will enter closed beta on April 28, 2009, in China.

The9 got the license to operate Atlantica in mainland China on April 22, 2008.

Very brief, eh? Well, it doesn’t really matter. What concerns me the most is how the launch of the China server will affect the North American server of Atlantica Online.

In our guild, the Guardians, alone, we have a few China-based players (at least, they claim to be from China). The question is, will they abandon they’re characters on the international servers of Atlantica Online and go play on the local server?

Musician versus Vampire: Atlantica Online character Cooky rushes Dracula at the heart of Bran Castle.

Screenshot taken by Joel from the online game Atlantica Online, developed and operated by NDOORS.

Post from: MMOtaku

Let’s take a closer look at the announcement courtesy of China-based online games portal 17173:

The9 Gets FIFA Online 2 Beta Version to China

The development of open beta version of FIFA Online 2 is almost finished. On March 13, 2009, a group of executives from The9 flew to Korea to confirm the final copy of the game, which they plan to bring back to China in a new few days.

The two parties, The9 and (presumably) EA Sports, have discussed several issues including optimizing the online gaming experience of Chinese gamers.

Post from: MMOtaku

Electronic Arts and The9 have recently jointly announced that the Chinese open beta of EA Sports’ FIFA Online 2 will start this April.

FIFA Online 2 is the latest version of the FIFA series. The game has the official authorization of FIFA, introducing over 30 leagues, over 10,000 famous, real-life football stars, and 35 stadiums and club jerseys.

As a casual sports game newly introduced into the Chinese market, FIFA Online 2 has stunning graphics and motion, realistic interaction, unique role-playing game elements, and a huge fan base. It’s believed that the game will bring a deep gaming experience to Chinese players.

Wondering about the action? Check out this video:

Post from: MMOtaku