Mar 8 - Fewer Government Financial Incentives for Computer Game Companies

Source: Netease, ChinaScope Financial (Data)

+   The government has started reducing subsidies to computer game companies. The subsidy reduction is attributed to the lack of new products, to the increase in competition from for instance web and mobile games, and to the emergence of other mass entertainment and cultural activities.

+    Giant Interactive Group Inc. (NYSE: GA) reported that in 2009, 2010 and 2011, government financial incentives granted to the company were CNY 88.46 million, CNY 57.4 million and CNY 47.7 million respectively, decreasing year by year. Government financial incentives for other companies such as Shanda Games Ltd. (NASDAQ: GAME) and Kongzhong Co. (NASDAQ: KONG) have also declined.

Government financial incentives for computer game companies decreased in 2011. The net income of companies such as Shanda Games (GAME.NASDAQ) and NetDragon (0777.HK), might drop as a result of the financial incentive decrease.

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n Fewer Government Financial Incentives for Computer Game Companies

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