Shanda's (SNDA) CEO Chen Tianqiao says many parents in China refuse to let their children visit Internet cafes, believing they are a bad influence for adolescents' growth. As a result, Shanda faces great risk in the marketplace and has turned towards IPTV as a technology that can give it revived revenue strength.

Quoted in local media, Chen says Shanda is working towards new hardware to supplement the company's entertainment offerings. In 2004 it commissioned Intel to develop a chip combination framework for IPTV with which it planned to provide a set-top entertainment box, much like Microsoft's Xbox or Sony's Playstation. Development is continuing on the box and there is no word yet on when it will be completed.

Chen says that Shanda would cooperate with more hardware manufacturers, providing technology to them free of charge, and helping them promote jointly-developed products.

Shanda has been keeping close contacts with both Lenovo and the Shanghai Media Group. Shanda has recently announced cooperation with the latter in entertainment-related fields.