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Tencent

Alliance set to drive China gaming

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Three firms to combine technology for slice of market action

An alliance between Shenzhen Domain Network, Huawei Technologies and United States-based Advanced Micro Devices (AMD) looks set to fire up China's internet gaming market.

The three companies said they will jointly support the development and marketing of a new-generation online gaming network, based on their technologies. No investment figures were given.

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The online gaming market in China is forecast to grow from US$580 million last year to US$1.7 billion in 2010, according to research firm DFC Intelligence.

Online gaming carrier and software firm Shenzhen Domain Network will run the advanced network as a vehicle for its premium games, including the upcoming Huaxia2.

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Hong Kong-listed Tencent Holdings, an instant messaging and internet game portal operator on the mainland, is a minority shareholder in the company.

It will adopt equipment based on the Telecommunications Standard Service Platform from network gear-maker Huawei and chip supplier AMD. The computer and networking infrastructure is designed to speed up and boost play for the large multiplayer community and casual gamers.

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