Chinese Online Game Companies Doing Well

Week ago I expressed my worries regarding the intensifying competition on the Chinese online game markets. I still think that the market is getting crowded and the margins will sink, but for now there are no worries in investors minds. Since the previous week, stock prices of game companies have climbed again. Both Shanda, and The9 had considerable improvement. Especially Shanda’s star was rising overnight, because they announced good financial results. Massively multiplayer segment was not doing too well compared quarter-on-quarter, but casual online gaming grew rapidly.