Table of Contents
The gaming industry has undergone significant changes over the past couple of decades. Starting in 2000, online gaming gained prominence, followed by the popularity of web-based games that allowed players to engage at their convenience. With the widespread adoption of smartphones in 2009, mobile gaming experienced rapid growth, prompting gaming companies to invest capital in research and development. By 2017, mobile gaming officially surpassed consoles and PCs, becoming the highest-grossing platform and reshaping the entire ecosystem of the gaming industry. Many gaming companies, unable to introduce games that captivate players, faced unsuccessful transitions and eventual decline.
The left side of the chart illustrates the changes in the top ten revenue-generating companies in the Taiwanese gaming industry over the past five years. From this, it is evident that, aside from Gamania, International Games System, and Soft-world, the rankings of other companies are relatively unstable, indicative of fierce competition. The key to maintaining competitiveness for game developers lies in whether their games can cater to the players’ preferences, keeping them engaged and contributing to continuous revenue growth. However, the industry’s rapid transformation has pressured game developers to innovate continuously. Despite their efforts, many have struggled to create games that resonate with players, resulting in unstable revenue growth.
The transformation of the gaming industry, intense competition among companies, and the instability of revenue have further prompted changes in the ownership of gaming companies. On the right side of the chart, companies that have undergone changes in ownership over the past decade are listed. Many of these companies experienced leadership turnover or transitioned to other industries due to poor business performance. During the period of transformation in the gaming industry, what changes occurred in the ownership of these companies?
This article will analyze companies that have ranked in the top ten in revenue in the gaming industry over the past five years and have undergone changes in ownership. Through this exploration, you will understand how the gaming industry’s transformations have influenced various gaming companies’ operational dynamics.
Wayi (3086) was founded in August 1993 by BoHung Huang. BoHung Huang worked as a comic art editor at a publishing house. In 1993, a friend approached him to start a computer company, and recognizing the future trend of computers, they co-founded Wayi, providing hardware and software services for clients.
At the time, BoHung Huang and colleagues played games during their leisure time and noticed a need for more Japanese games in the market. They decided to approach Japanese game companies for potential representation proactively. After addressing compatibility issues, they started their journey by representing Japanese games.
In February 2000, Wayi released its first online game, “People in Jianghu,” marking its entry into the online gaming operations field. In August of the same year, Beijing Wayi International Digital Entertainment was established to enter the online gaming market in China. Subsequently, in May 2002, Wayi went public on the emerging stock market, and in March 2004, it moved to the OTC market.
In 2004, due to subpar results in developing in-house games and fierce competition, Wayi, like many other gaming companies, faced layoffs. By 2005, the company incurred losses amounting to 200 million NTD. In December 2005, Wayi launched its operations in the mainland Chinese online gaming market and was acquired by Kingsoft for its China business.
In 2013, Wayi returned to losses, and its revenue declined. In June 2016, during a board and supervisor election, BoHung Huang resigned as chairman and general manager, transferring his holdings. Chairman responsibilities were assumed by PeiJing Xu, the legal representative of Chun Tong Investment, with Chun Tong Investment holding only 1.79% of the shares. The largest shareholder remained BoHung Huang’s family. Thus, TEJ did not change the group.
In August 2016, Wayi was listed as full-cash delivery stock because its net worth was less than half of its capital in the Q2 report. In November 2016, Wanin’s Chief Financial Officer, AiYun Wu, was appointed as a director through a by-election. In June 2017, PeiJing Xu stepped down as chairman, and XieJian Zhang, the head of Wanin’s Hongxin Media, took over as chairman, representing Chun Tong Investment. In November of the same year, Wayi introduced funds through private placement, bringing in Wanin’s Given Business Inc. and Huangxin Investment. Wanin thus became Wayi’s largest shareholder.
In June 2019, during a board and supervisor election, XieJian Zhang became the legal representative of Given Business Inc. and continued as chairman. In April 2020, Wayi had five directors and two supervisors, including two independent directors. Wanin obtained three director seats and one supervisor seat, holding 38.13% of the shares. TEJ considered June 2019 to be the time Wayi was included in Wanin.
In January 2020, Wayi represented the Wanin-authorized gambling-type mobile game “Casino Slots.” In December 2020, another private placement brought in funds from Wanin, with Wanin holding more than half of Wayi’s equity and seats. After Wanin gained operational control of Wayi, the cooperation between the two became even closer. Wanin took over its proxy projects and resources through Wayi and provided art outsourcing for the Wanin Group. In 2021, Wanin’s share of Wayi’s sales ratio reached 77.38%.
Softstar (6111) was established in April 1988 by founder Li Yongjin. It went public in July 1999 and was listed on the OTC market in August 2001. In June 2001, Softstar had a total of 8 directors and supervisors. Softstar secured 2 director seats, including 1 chairman, and through YongJin Li and ShuZi Ding, held a 27.1% ownership stake. Softstar became a self-sufficient group from then on.
However, after several years in the OTC market, Softstar’s operations turned from profit to loss in 2005. Operating profit dropped from NT$49,748 thousand in 2004 to an operating loss of NT$350,371 thousand in 2005. YongJin Li couldn’t propose a solution to improve the situation, leading to dissatisfaction among long-term shareholders like LiangCai Wu. In a board meeting in June 2013, the market party led by LiangCai Wu demanded the removal of Chairman YongJin Li. The company and market parties were evenly matched, resulting in a deadlock for the chairman. It wasn’t until an extraordinary board meeting in July, with LiangCai Wu at the forefront, that he secured the chairmanship of Softstar.
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Although LiangCai Wu had intentions to revitalize Softstar, he was unable to take over the company. He sought an external professional team to take over, approaching JunGuang Tu, who was looking to transition to other fields. Tu gained support from FengNian Jiang, also a shareholder of China Communications Media, and successfully persuaded YongJin Li, to relinquish his shares and give up management rights. According to TEJ data, in February 2014, Softstar had a total of 10 directors and supervisors. The Tu family secured 4 director seats and 1 supervisor seat, including 1 chairman, and through Angel Fund (Asia) and China Development Mobile Technology, held a 21.09% ownership stake. TEJ considers the January 2014 board and supervisor election as the time when Softstar returned to China Communications Media Group.
Interserv (6169) was founded by YueWen Cao in April 1989. YueWen Cao was Taiwan’s first female computer salesperson since Hewlett-Packard was established. At 28, YueWen Cao established her own business, initially focusing on multimedia presentations.
In 1991, Interserv formed a strategic alliance with ETEN, making ETEN the first corporate entity to invest in Interserv. In 1997, a strategic alliance with the Acer Group was established, with Acer becoming Interserv’s second corporate investor. Interserv went public in October 1999, listed on the emerging market in January 2002, and entered the OTC market in March 2002.
After turning from profit to loss in 2012, Interserv found retaining players for its in-house and agency games challenging. In November 2015, it collaborated with Game Hours to strengthen the competitiveness of its mobile games. Game Hours acquired a 20% stake in Interserv through private placement.
In January 2016, YueWen Cao stepped down as the general manager, and in June 2016, there was a board and supervisor election at Interserv. In July of the same year, YueWen Cao resigned, and ShuQi Xu took over as chairman. In April 2017, Interserv had 6 directors and supervisors, with Game Hours securing 2 director seats, including 1 chairman, and holding 20% shares, making it the largest single shareholder. TEJ considers the June 2016 board and supervisor election when Interserv became part of Game hours.
After losing managerial control, YueWen Cao and her spouse successively divested their holdings. Under the management of the new owner, Game Hours, Interserv did not return to profitability. Instead, Game hours turned from profit to loss in 2019, prompting a decision to sell shares for liquidity. In November 2019, Game Hours transferred all its holdings in Interserv to Da Duen Investment, a subsidiary of Xin Li Wang Holding.With the sale of shares, Game Hours naturally relinquished its directorship. In February 2020, during a board election, Duen Chen Investment brought in former legislator JinLong Cai as chairman. In April 2020, Interserv had 7 directors, including 3 independent directors. Xin Li Wang International Holdings secured 2 director seats and held a 23.27% ownership stake. TEJ considers the February 2020 board election as the time when Interserv became part of Xin Li Wang International.
