Police arrested the hacker for attacking the servers of the company and extorting a protection fee.
The arrest came after the online games could not run normally, prompting hundreds of complaints from its users.
The hacker attacked the company's 20 servers between July 19 and 21 this year, state-run china.Org. Cn reported.
After the attack, the hacker contacted the company and admitted that he had hacked its servers.
He then extorted a protection fee of 1880 yuan (around USD 296)per month from the company, threatening it with repeated attacks if it refused to pay up.
The company reported the case to the security authorities on July 22 this year.
A number of US firms have complained of hacker attacks originating from China which Beijing consistently refute, saying it is also a victim of cyber attacks.