This study wants to understand and explore that competitive edge of Taiwan’s on-line game industry. Therefore, the purposes of this research are as follows: 1. buy gathering and analyzing the secondary data, this study wants to understand Taiwan and Korea’s on-line game industry in terms of market structure, development and current environment. 2. Based on the Porter’s diamond model, this study wants in identify the strength and weakness of on-line game industry of Taiwan and Korea. At last, this study tries to establish Taiwan’s on-lien game industry long-term competitive strategy by giving them suggestions.