Shanda - A Diamond in the Rough - Online Gaming Versus Online Gambling

Everyone thought that even though land-based casinoShanda has done so well because it has decided to
revenues worldwide are taking a hit because of thisfocus more on online games and online board games
incredibly tough recession that online gaming revenuerather than online gambling games . The potential for
on the other hand would be new to the toughonline game playing in China is incredible and if they
economic times because of the little amount ofcould do this well during the recession imagine how
expenses it takes to operate an online casino but thiswell it will do when we come out of this recession.
hasn't been the case.Even though online gambling hasn't been hit as hard as
Even online casinos worldwide are starting to feel theland-based gambling in China, the one area that seems
pinch of a recession that borders on the depressionto be outpacing them all is the online game arena. I
and you can see this not only from the numbers butthink that American gambling companies should learn a
from all of their forward outlook on future revenues,lesson from this company and try to shift their focus
but there are still some diamonds in the rough as farmore so away from online gambling during the
as online gambling companies to either gamble at orrecession to online games because of the fact that
invest in through the stock market. One of the onlineonline games have become almost a culture unto itself
gaming companies that is growing revenue and netwith the younger generation as we start to move
income like gangbusters is the Chinese online gamingonline at a younger age every year.
firm Shanda.I know this because I have a 42-year-old brother that
While everyone else is losing their shirt financiallystill plays games on his Xbox with his kids and it has
Shanda has announced incredible revenue gains forgotten to the point where they are almost addicted to
the third quarter of 2008. Their revenues havethese games so it goes to show that online games as
increased by 41% over last year's third-quarterwell as online gambling have a big influence even
revenues and net income increased over 20% fromculturally among our young and among our middle-age
last year.population.