The9, which purchased controlling interest in Firefall developer Red 5 during 2010, has reported its year end and Q4 fiscal earnings.
Net revenues in Q4 2013 came in at RMB24.8 million (US$4.1 million), a 26.8% decrease from RMB33.9 million (US$5.6 million) during Q3 and a 33.5% increase from RMB18.6 million (US$3.1 million) year-over-year.
The decrease from the previous quarter was primarily due to a decrease in net revenues from several web games. The year-over-year increase was primarily due to an increase in net revenues from Planetside 2 and Firefall, which is in limited beta testing.
Gross profit during Q4 2013 came in at RMB3.0 million (US$0.5 million), compared to gross loss of RMB8.2 million (US$1.4 million) during Q3 and a gross loss of RMB1.3 million (US$0.2 million) yoy. The gross profit for Q4 was primarily due to an increase in net revenues from Planetside 2 and Firefall which were sufficient to cover the cost of services.
Online Game Services revenues from 2011 -2013 amounted to RMB109.0 million, RMB157.4 million and RMB95.1 million (US$15.7 million), respectively. The decrease in revenue from 2012 to 2013 was mainly due to a decrease in revenue from ShenXianZhuan and SUN, partially offset by an increase in revenue from Firefall and Planetside 2.
As of April 2013, The 9 owns 80% of the equity interest in Red 5 which is developing Firefall, a MMOFPS game, which went into limited beta testing in 2013 and expected to formally launch in 2014.
Planetside 2, which the firm licensed from Sony Online Entertainment in 2010 to run in China, commercially launched in the region in June 2013.
The9 said since its acquisition of Red 5 in April 2010, Red 5 has devoted "substantially all of its operating activities to the development of Firefall.