The9 Limited (NASDAQ: NCTY) said it has announced that its joint venture Oriental Shiny Star Limited has entered into a license agreement with Smilegate Entertainment, Inc., a leading Korean game developer, for publishing and operating Cross Fire 2 on an exclusive basis for a five-year term in mainland China.
In consideration for the exclusive license, JVC will make an upfront payment of USD50 million and additional payments totaling USD450 million based on certain development and operation milestones, as well as royalty payments based on future sales.
Cross Fire 2 is the sequel of Cross Fire, a blockbuster first-person-shooter PC online game in China. Both Cross Fire and Cross Fire 2 are developed by SG. Cross Fire 2 is being developed using new game engine. Other than the traditional PVP game mode like Cross Fire, Cross Fire 2 also provides PVE game mode to offer enhanced game experience to players.
Majority of JVC´s equity is owned by System Link Corporation Limited. System Link is a 50-50 joint venture formed by The9 and Qihoo 360 Technology Co., Ltd., a leading Internet company in China. Through its PRC consolidated subsidiaries, System Link will operate Firefall in China.
The9 Limited is an online game developer and operator in China. The9 Limited develops and operates, directly or through its affiliates, its proprietary MMO and mobile games including Firefall and Song of Knights.