×
You will be redirected back to your article in seconds

Tencent And Netease Mobile Game Revenue Rose 382% This Year (Analyst)

Video game publishers Tencent and Netease saw their mobile games revenue grow by 382% in 2018, from January through mid-November, compared to the same time last year, according to analysis company IHS Markit.

Their combined international revenues reportedly rose from $78 million in 2017 to $376 million during the same time frame this year.

Tencent is the publisher behind hit mobile titles like “Arena of Valor” and “PUBG Mobile.” It has majority stakes in “League of Legends” developer Riot Games and “Clash of Clans” developer Supercell. It also owns part of Epic Games, the studio behind the mega popular battle royale title “Fortnite.” NetEase, meanwhile, is responsible for mobile titles like “Fantasy Westward Journey” and “Rules of Survival.” It’s also partnered with Blizzard Entertainment to operate versions of “World of Warcraft,” “Hearthstone,” “Overwatch,” and more in China.

Tencent is currently undergoing its first restructuring in six years. It suffered a drop in market value after the Chinese government decided to largely freeze new game releases in March. For large publishers like Tencent and Netease, these tougher regulations have underlined the importance of international markets for future growth, IHS Markit said.

“Tencent and NetEase have begun to build a stronger international franchise for their games in response to the regulatory environment in their domestic market,” said IHS Markit games research and analysis director Piers Harding-Rolls. “However, even with this stronger focus, in the opening nine months of 2018, direct international revenues from mobile games represented only 3% of the companies’ total mobile games revenue. Both companies still have a mountain to climb to derive meaningful revenues from international markets to offset slowing growth in mainland China.”

NetEase reportedly accounts for 72% of the combined company revenue growth, which underlines Tencent’s limited success in exporting games to international markets, IHS Markit said. “Arena of Valor” is popular in Asian markets but has failed to catch on with Western audiences. “PUBG Mobile” has fared better, yet it represented just 2% of Tencent’s overall mobile games business in the third quarter of 2018.

More Gaming

  • Sony's My PS4 Life Videos Accidentally

    Apparent PS4 Stats Show Player Counts for Top Games Like 'GTA V,' 'Fallout 76'

    Sony recently launched My PS4 Life, personalized videos highlighting the games people played and the trophies they won in 2018. But, one Reddit user said they reveal more information than Sony probably intended. Thanks to a bit of math, My PS4 Life videos can reveal the total number of people who’ve played a game, according [...]

  • Soulja Boy felony gun possession

    Soulja Boy Wants To Build Esports Teams For 'Fortnite', 'Overwatch'

    Rapper Soulja Boy is interested in starting up his own esports franchise, as related to TMZ. Soulja Boy, who recently launched the “SouljaGame Console,” what appeared to be one of several cheap emulator consoles that could be purchased at retailers such as Amazon and Ali Express, is looking to enlist personalities like Ninja for his [...]

  • pokemon go

    Niantic Fans Walked 17,000 Kilometers At Social Impact Events in 2018

    Fans of Niantic’s augmented reality apps, like “Pokémon Go” and “Ingress Prime,” walked about 17,000 kilometers during social impact events, the developer said in a blog post on Friday. That’s almost as far as walking from New York to Tokyo twice, it said. “In the early days at Niantic, we witnessed firsthand the powerful positive [...]

  • Writers Guild strike

    How Video Game Industry Unionization Would Happen

    After years of studio closures, mass layoffs, and long, unpaid crunchtime, unionization is becoming the clear answer for developers looking for a seat at the table in the video game industry. While conversations about the importance of unions happen often on social media and at events like the Game Developers Conference earlier this year, it’s [...]

  • Action-RPG 'Pagan Online' Gets Its First

    Action-RPG 'Pagan Online' Gets Its First Official Gameplay Trailer

    Publisher Wargaming and developer Mad Head Games just released an official gameplay trailer for “Pagan Online,” an action role-playing game coming to PC in 2019. “Pagan Online” features a colorful and cartoonish art style similar to Runic Games’ now-defunct series “Torchlight.” But, that might be where the similarity ends. Where other action-RPGs have you focus [...]

  • 'Kingdom Hearts III' Trailer Drops 3

    'Kingdom Hearts III' Trailer Drops 3 1/2 Minutes of Gameplay, Cut Scenes (Watch)

    The new “Kingdom Hearts III” trailer went live Monday morning, a day earlier than expected, delivering more than three and a half minutes of cut-scenes, gameplay and faux music video to fans of the Disney-meets-Square mash-up game. The final battle trailer was set for a Tuesday release, but game director Tetsuya Nomura took to Twitter [...]

  • 'Evil Ryu' Kage Hits 'Street Fighter

    'Evil Ryu' Kage Hits 'Street Fighter V: Arcade Edition' Monday

    “Street Fighter V: Arcade Edition” got a new character Monday: Kage, the embodiment of Ryu’s internal battle with his own dark side. The character will cost PlayStation 4 and Steam players $6. The character was announced by executive producer Yoshinori Ono as the weekend’s Capcom Cup closed out the game’s season and prepared to launch [...]

More From Our Brands

Access exclusive content