APRIL 7, 2008 • Disney Interactive Studios made its first developer acquisition in China, GameStar Ltd. The Shanghai-based studio is best known for taking out-sourced work from publishers, including Disney. GameStar may create original IP for the Chinese market in the future.

Impact: In 2006, the Walt Disney Internet Group signed a deal with leading China game company Shanda to bring Disney online games to China.  As a large media company, Disney has a very different strategy for its online games.  The focus is not so much on pure revenue generation, but instead a key goal is promoting the overall Disney brand.  Of course, since so many Chinese consumers in the Disney demographic now play online games it makes sense to use games as a way to build the Disney brand.