China-based online game developer Shanda Games Limited and Kingsoft Corporation Limited are planning a joint venture to develop online games.

"We are delighted to take our cooperation with Kingsoft to the next level, as we believe the joint venture will allow us to apply the clear synergies between us more efficiently. Putting together the leading online game company and one of the best game software developers in China, we will be even better equipped to produce successful game features and operational models that are driven by dynamic market demand," commented Diana Li, chief executive officer of Shanda Games.

Under their previously announced partnership, Kingsoft's JX World Online and JX 3 are operated and will be operated by both Kingsoft and Shanda Games under joint marketing and operational arrangements, respectively. The new joint venture will focus on enhancing existing Kingsoft games, and bringing these game titles to China and international markets.

The financial details of the deal have not yet been revealed.