Our colleagues from techinasia.com they believe that Tencent’s revenue is lower than it could be – and not only because the Asian mobile market is crowded, but also because the Chinese player has its own characteristics.
In the third fiscal quarter, Tencent showed a slowdown in growth and a decline in revenue in the mobile games sector.
According to statistics, a Chinese user deletes the game a couple of months after downloading. You have to create and/or license many projects at the same time and hope that at least one will “shoot”. At the same time, if the title becomes popular, companies are forced to squeeze all the juices out of the paying audience until users get tired of the game and they switch to another one.
In such circumstances, Tencent has chosen an “eco-friendly” approach: the company is going to increase its revenues by improving the quality of titles, and not by “burning out” the audience. Hence the deterioration of financial indicators, the resource believes techinasia.com .
Since, as we have already mentioned, Chinese players tend to lose interest quickly, the company will have to learn how to monetize its games so as to get a high income, and quickly – and at the same time not scare off players.
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- Tencent is one of the largest Internet companies in China.
Founded in 1998. Among its developments are the messengers QQ and WeChat, whose total MAU is more than 1 billion. Tencent accounts for 30% of China’s mobile market.