Renren loses on games

The postponement of a number of game releases cost the largest Chinese social network losses of $29 million, as well as sales, 10% less than expected.

Time is money. An old saying that still does not lose relevance.

The Chinese social network Renren has long planned to launch a line of new mobile and cross-platform games in its native market. But their release was delayed. As a result, the second quarter of this year, ending June 30, the company met with revenue of $49-50 million, instead of the planned $55-57 million, and operating losses, according to preliminary calculations for the second quarter, amounted to $ 29 million. 

The fact that games are to blame for the losses, according to analysts of the company itself, who had high hopes for entertainment applications. 

“At the moment, we are continuing to prepare for our penetration into the Android market. Our goal is to ensure that the games are fully ready, as well as to think carefully about their distribution strategy,” Renren CEO Joseph Chen justifies himself in an official press release.

But if they don’t hurry up in the future, the company may have more tangible problems. The appearance of games in the WeChat messenger can potentially deal a very strong blow to the social network.