Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Richard Ji - Morgan Stanley.
Richard Ji - Morgan Stanley
I have two questions. Starting with your Westward Journey II migration, at the end of last quarter you guided us that you planned to migrate Westward Journey II to Westward Journey III. I just want to clarify that the migration will no longer happen and your latest status.
Also relating to the question is that during the quarter have you seen Westward Journey II user volume stabilize or recover after you stopped the migration process?
Michael Tong
What happened is when we launched Westward Journey III we believed that with the new features and the new graphics and engines that we would be able to draw a lot of the uses from Westward Journey II and migrate all of them to Westward Journey III. But it happens that Westward Journey II players are so loyal to the game that even with the new features and all these new graphics that the Westward Journey II players continue to like to stay in Westward Journey II and the majority of those gamers stay in Westward Journey II.
Effectively, what happened is we actually draw a lot of new users into Westward Journey III rather than from migrating from Westward Journey II. As we said in the script that we have done a lot of surveys to see what happens, how the players think about the games and most of the Westward Journey II players, even with the new engine and the new features they still decided to stay on the Westward Journey II.
There is a slight drop with the Westward Journey II players when Westward Journey III was in open beta that drop has been stabilized right now and within the Westward Journey III players we have found that majority, over 50% of the accounts are newly opened accounts, rather than Westward Journey II players.
Richard Ji - Morgan Stanley
Regarding advertising revenue, indeed it climbed nicely quarter over quarter and I just want to find out, what is the price increase that happened during the quarter? Going forward, do you see further price increase in anticipation of the Olympics?
Onward Choi
Well of course our price increase is effective on the first of July basically the beginning of this quarter. The price increase is very complicated. On an overall basis, I would say the price increase is around 10% compared to before. But that is not really the main reason for the increase in advertising business. It really is the increase of our traffic, especially on the content channels and our other products including the email and the blogs. Most of that we are able to commercialize the email better than before.
- To read the full transcript on Seeking Alpha, click here »
