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The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.



) --

Perfect World


recently noted in its latest earnings impressive revenue growth that was driven primarily by its international gaming operations.

While its user base in China has shrunk over the last couple of years, dragging down its overall revenue growth, its international gaming revenue has nearly doubled in 2011, according to our estimates.

Check out our complete analysis of Perfect World


Perfect World operates localized versions of its games in international markets such as those in Europe, North America and Japan through its partners. It licenses its games to publishers in other markets where its offerings compete with games such as "World of Warcraft" by

Activision Blizzard

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Perfect World announced some of the latest developments related to its international gaming operations following its earnings release. It has made a series of significant launches, which should drive its revenue in the coming years.

It licensed one of its most popular games, "Battle of the Immortals", to Mentez LLC in Brazil. It also launched "Forsaken World" in Indonesia through its partner Datarindo Fortuna and unveiled "Blacklight Retribution," a new game developed by its partner Zombie Studios in North America.

Going forward, we expect Perfect World to focus more on its international gaming operations and overseas gaming licensing to drive revenue growth as its Chinese game operations have gradually taken a back seat.

Perfect World's market price jumped nearly 30% after its fourth-quarter earnings report, which supports our

$23 Trefis price estimate, which now stands around 45% above the market price.



to find out how a company's products impact its stock price at Trefis.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.