Chinese online game company Shanda Interactive Entertainment Limited announced its unaudited consolidated financial results for the second quarter ended June 30, 2010, and showed its game revenue dropped.

The company stated that while consolidated net revenues increased 4% quarter-over-quarter and increased 10% year-over-year to USD200.6 million, Shanda Games’ revenue decreased 3% quarter-over-quarter and decreased 4% year-over-year to USD163.9 million. Likewise, Shanda Online’s revenues decreased 2% quarter-over-quarter and decreased 4% year-over-year to RMB248.9 million.

Other revenues, including Ku6 (formerly named Hurray! Holding Company Ltd.), literature, chess and board games platform, e-sports platform and other businesses, increased 42% quarter-over-quarter and increased 150% year-over-year to USD39.5 million.

Consolidated gross profit was USD122.3 million, representing a 3% decrease from the first quarter of 2010 and an 8% decrease from the second quarter of 2009. Gross margin was 61.0% in the second quarter of 2010, compared to 65.5% in the first quarter of 2010 and 72.7% in the second quarter of 2009.