Traditional Chinese online game operators have seen the writing on the wall about the success of social networking service (SNS) games, and are making strides to incorporate them into their business lines. The9 announced a partnership with 51.com to produce SNS games and Shanda stated that SNS games will be a focus, even investing 700 million RMB into 42 SNS game projects so far. Giants in the SNS space in China include Tencent, Kaixin001, and Oak Pacific's Renren.com. The market will get crowded with several participants. Facebook is the runaway worldwide SNS leader, and throughout Asia has taken considerable market share (for example, Indonesia has the 2^nd highest number of Facebook users in the world behind the United States). Facebook is not yet in China, and faced with a fragmented market dominated by the powerhouse Tencent, it might have significant struggles there.

Zeebo is planning expansion into China by bringing its mobile Internet based set-top box to market as a low-priced system that focuses on family education and edutainment. Zeebo is currently available in Mexico and Brazil where they offer the system to be online by riding on cell phone reception or a 3G phone modem. Even if a house doesn't have broadband, people can use their Zeebo to still get online. The system is based on low-cost hardware and is designed for developing markets. While this console is barely known in the U.S., anyone with an eye on the global industry should definitely keep a watch on it. In China there are many regulations that have hampered console deployment, but mobile games are not yet regulated and the distribution of Zeebo's games is via the mobile Internet and not the fixed-line Internet. Another entrant in the world of somewhat-like-consoles-in-China is China Telecom's Somatic Gaming, though it is not a stand-alone console, but rather more like a set-top box add on feature.

Mr. Tuo Zuhai announced more regulations for online games, saying that there will be an inspection of all online games starting in the first half of 2011 to make sure the games meet the Ministry of Culture standards. Each game will receive an inspection form. Mr. Tuo said separately that he wants games targeting younger gamers to consider closing operations at night as part of youth protection efforts.