Tencent is gradually recovering after the end of the game licensing freeze in China. In the second quarter of this year, 10 mobile games of the Chinese giant entered the market at once.
Honor of Kings
In the same quarter of 2018, Tencent was able to release only one game, writes Gamesindustry.biz .
Just shortly before that, licensing was canceled. That’s why in April — June of this year, Tencent’s revenues soared in annual terms.
- In particular, the company earned 8% more on games than in the second quarter of last year. Such major hits as Honor of Kings and the new Game for Peace helped to support Tencent’s revenue growth. All revenue from the gaming direction reached $3.9 billion for the period.
- Mobile games are responsible for most of the revenue. They brought in $3.2 billion (26% more in annual terms). This includes, among other things, income from games on social platforms owned by Tencent.
- Revenue from PC games at the same time fell by 11% to $1.7 billion. Even significant player spending on League of Legends could not improve the situation.
- In general, Tencent earned $12.7 billion in the second quarter (together with the gaming direction). Last year, his income for the period was 21% lower.
The fact that Tencent’s affairs have improved significantly is also evidenced by the success of its last three projects: KartRider Rush, Game of Thrones: Winter is Coming and Dragon Raja. They got into the Chinese top 10 highest-grossing games on iOS. But these titles were released in July, so they cannot be attributed to the second quarter.
Last year’s licensing freeze forced Tencent to pay closer attention to the Western market. The company announced that it will review its strategy for promoting games abroad. But even at home, its position is strengthening, although the regulator did not immediately begin issuing licenses to its games.
Also on the topic:
- In China, the issuance of licenses for the publication of games has been blocked since March 28In China, the issuance of gaming licenses has resumed
- Tencent and NetEase games have finally started to be licensed in China
- Tencent sees Season Pass as a hope for revenue growth after licensing freeze in China