First, let’s check out the highest 10 video video games in 2023 worldwide:
The Legend of Zelda: Tears of the Kingdom
Hogwarts Legacy
Elden Ring
Name of Responsibility: Fashionable Warfare II
Fortnite
Genshin Impression
League of Legends
Roblox
Apex Legends
PUBG Cellular
And right here’s Tencent’s possession:
Fortnite – Partially owned (40% stake in Epic Video games)
League of Legends – Totally owned (Riot Video games)
PUBG Cellular – Partially owned (developed by Tencent’s subsidiary, Tencent Video games)
Genshin Impression – Partially owned (miHoYo has some funding from Tencent)
In abstract, out of the highest 10 video video games in 2023, Tencent has full or partial possession of 4 video games.
World’s Second Largest Video Recreation Firm
In 2023, the annual income of Tencent Interactive Leisure reached $25.5 billion, roughly 85% of its prime rival Sony Interactive Leisure, making it the world’s second-biggest online game firm by income. This isn’t precisely information: Tencent already turned the second-largest online game firm on the planet by income six years in the past, again in 2018.
Whereas Sony good points an enormous chunk of income from its {hardware} gross sales, together with PlayStation 4/5, equipment, and VR headsets, solely 25% of its yearly income comes from digital video games, DLC, and in-game purchases. Tencent’s Leisure division, nonetheless, good points 80% of its income from cell and PC video games.
So how did Tencent change into the world’s second-biggest online game firm?
The reply is: acquisition.
Tencent acquired important stakes in main recreation firms like Riot Video games (100% possession of “League of Legends”), Supercell (84.3% of “Conflict of Clans”), and Epic Video games (40% of “Fortnite”). These investments introduced extremely widespread and worthwhile video games beneath Tencent’s umbrella, considerably boosting its market share and income.
What Video games does Tencent Personal
Right here’s a whole listing of the video games that Tencent personal or partially personal:
Solely three of all these video games have been developed by the corporate itself. All the opposite recreation titles come from the developer firms it acquired as early as 2008.
Cash is the facility right here. However not so simple as that.
Numerous Acquisition
From the desk, you’ll be able to see that their acquisition includes a various portfolio that features varied genres and platforms: From cell video games like “Honor of Kings” and “PUBG Cellular” to PC and console video games like “Fortnite” and “League of Legends,” Tencent covers a variety of participant pursuits, which helps safe a big person base and constant income streams.
And it’s not simply the sport style, Tencent expanded its market presence internationally by means of each acquisitions and partnerships. By investing in firms outdoors of China and collaborating with international builders, Tencent penetrated new markets and leveraged worldwide gaming traits, enhancing its international footprint.
And lastly, Monetization Methods. Tencent has mastered varied monetization methods, together with in-app purchases, subscriptions, and promoting. Its video games are designed to encourage microtransactions, which considerably increase income. This, mixed with its means to scale these fashions throughout its huge person base, has contributed to its monetary success within the gaming sector.
