In a trend-setting move for the Chinese online games industry, Perfect World announced it will purchase more than 30 million shares of Shanda Games for $100 million in cash, and will join an acquisition alliance in a consortium with Primavera Capital (Cayman) Fund. The alliance proposed acquisition of Shanda to the Shanda Games' board of directors in January, for the price of $3.45 per share. This is significant as Shanda and Perfect World are two of the biggest online game operators in China, competing against each other and others for several years. In addition to this move, Giant Interactive had previously announced its intent to go private in 2014 and turn attention to the mobile games segment in addition to PC online games. 

On April 21, the government of Shanghai announced "China (Shanghai) Free Trade Pilot Zone Cultural Market Open Project Implement Regulations in Details." According to the regulations, foreign-invested enterprises will be allowed to manufacture game hardware, and sell in China as long as the games are approved by the Ministry of Culture and the consoles and games adhere to several other stated regulations. 

We will release more information on the details in our 2014 Chinese PC Online & Console Games Market Report, to be published by the end of April.

Chukong Technology submitted IPO documents to SEC on April 19, hoping to finance $150 million. Morgan Stanley, Deutsche Bank and China Renaissance will be the underwriters.

Giant Interactive has launched its mobile games subsidiary, Giant Mobile, including a management team comprised of internal and external hires with a goal to publish 10 mobile games in 2014. Li Gaowen came from Shanda Games where he ran the mobile card RPG Million Arthur, Gao Wei came from Muhe Network where he ran the mobile MMO card game Mystical Card, and Du Fang came from Giant's overseas business expansion group.