Gamania to trim workforce in Japan

Taipei, April 3, 2003 (CENS)--Gamania Digital Entertainment Co., Ltd. (Gamania), an online game service provider based in Taiwan, will fire staff at its Japanese subsidiary due to losses last year.

Over the past few years, many entertainment software developers and online game service providers from around the world have swarmed into the fast growing Japanese market. However, several of the quick-profit seekers have suffered setbacks in trying to tap the market there.

Gamania is the first Taiwanese online game service provider to penetrate the Japanese market. But the company lost of over NT$100 million (US$2.88 million at US$1:NT$34.7) in Japan last year. The company said its losses in Japan will continue this year.

In an attempt to reduce operating costs, Gamania is reviewing its operating strategy in Japan. The company recently decided to slash its workforce there and a new operating strategy will be introduced by the end of this month.

The company will also review its operations in Taiwan and mainland China.

P.Y. Liu, president of Gamania, said that the actual number of employees to be fired has not yet been determined. He also stressed his company's resolve to stay in the Japanese market.

Gamania said it has invested approximately NT$200 million (US$5.76 million) in Japan.

According to a survey conducted by Gamania, there are more than 100,000 online gamers in Japan. The game "Ragnarok," launched by Japan's Gravity Corp. a year ago, has attracted 80,000 customers in Japan.

Soft-World International Corp., another Taiwanese online game developer, said it is also having a hard time developing the Japanese market and will adopt a more conservative approach there.

To reduce operating costs, Soft-World will team up with a Japanese firm to penetrate the market there. The company plans to set aside NT$50 million (US$1.44 million) to NT$70 million (US$2.01 million) to establish a branch office in Japan in the second quarter of this year.

Soft-World has tapped the online game market in mainland China through its chain of Internet cafes in Shanghai. The company plans to set up a subsidiary in Shanghai this year to expand its business there.

Soft-World and Gamania will distribute dividends of NT$5.0 and N$4.0 per share, respectively, for 2002.