Tencent Holdings, a Chinese multinational video game and technology company, shows prospects for worldwide expansion.
Tencent’s game business is expected to push abroad when it was announced at the recent Tencent Game Developers Conference. This comes at a time when the Chinese video game industry is subject to strict rules and is hampered by complicated licensing procedures.
Tencent is reportedly looking to grow its business overseas, as reported by the South China Morning Post. The popularity of some Chinese games is growing, thanks in part to the Middle East, Latin America, and Southeast Asia.
Tencent promotes foreign game business.
Considering the video game market size Tencent Games Vice President, Xia Lin, noted that these markets have more game downloads than China. The most played game outside at the moment is PUBG Mobile, which has fast loading speeds and 15 million daily active users.
Time-restricting rules in China play a key role in the video game market’s downturn, as many experts say. An important factor leading to the decline of the video game market in China is the law limiting playing time for players under the age of 18. That’s why businesses like Tencent are subject to more regulatory scrutiny. In addition, it is becoming more and more difficult to get a license to release new games.
The report said that the domestic game industry in China fell from 8.3% growth in the first half of 2021, down 4.25% in the period from a year earlier. The number of gamers in China dropped to 665.69 million at the end of June from 666.57 million in December, according to a report by the Game Publishing Committee of the Audio-Video and Technical Publishers Association. number of China, while the industry’s overall revenue fell to 1.8%.
The growth of Tencent’s video games in the international market is very promising. In overseas markets such as Latin America and Southeast Asia, Tencent’s mobile games such as PUBG Mobile, Call of Duty: Mobile and Honor of Kings are doing very well, thus driving the expansion of the game business on their whole world.
However, due to slowing growth, these games are not doing well in China. Although revenue in the domestic market fell 1%, Tencent’s revenue increased 4% in the first quarter of 2022.
According to statistics from US analytics company SensorTower, Honor of Kings and PUBG Mobile achieved a total revenue of US$2.889 billion in the first 7 months of 2022. Tencent is focusing on planning multiple conferences. and recruited more foreign speakers to participate in the game developers conference as a result of the company’s international commercial expansion.
The future of China’s gaming industry looks bleak at a time when the global gaming and e-sports markets are booming. China-based conglomerates like Tencent are looking to seize the opportunity by increasing investment in the global gaming business.
