3.	Why online games company fails – A general view
Internal factors
There are several reasons. First, they give poor game experience because they ignore players’ opinion. Second, they manage their games poorly, allowing cheaters prevailing in the games. Third, they distribute resources in a messy way, investing resources only on popular games and ignore the less popular ones. Furthermore, their quality of service is bad: disconnection and server break down happens frequently. Additionally, there are almost no differentiations between any games so that they fail to attract players to stay to play. Finally, they fail to balance the freemium strategy. The players who do not spend money on virtual products often are oppressed by the premium players. Since premium players virtually dominate the games, fewer people are willing to join. They fail to generate a network effect in the game and eventually leads to poor brand loyalty.