If you were ever in doubt as to just how big Tencent is, try this little nugget for size: Tencent’s gaming revenue for 2017 was bigger than Activision Blizzard, Electronic Arts, Ubisoft and Take-Two combined.
The figures come via Daniel Ahmad, an analyst at Niko Partners and a bit of a specialist in game sales data. His data indicates that the Chinese megacorporation raked in $18.6 billion from its gaming division alone in 2017, aided by its full ownership of League of Legends developer Riot Games, 48% stake in Epic (Fortnite), along with a number of Asia-exclusive titles such as FIFA Online 3, Call of Duty Online, and NBA 2K Online.
On the mobile side of things, it’s got all sorts of generic sounding, microtransaction-driven F2P titles that appear to be raking in the cash also, including the imperious Clash of Clans.
Not only does provide a great barometer of the incredible growth of the Chinese and free-to-play markets, it’s also a strong indicator for why the likes of Activision, EA, Ubisoft and Take-Two are striving towards service-driven games. There’s an incredible amount of money to be had there and Tencent is continuing to expand at an incredible. Only recently it helped bring the mobile version of PUBG to China, while yesterday we heard how it’s struck a deal with Ubisoft to bring its games to Asia.
It’s little wonder Tencent is now one of the 10 largest companies in the world. One has to wonder the impact if Tencent could put together a serious Western competitor to Steam in the same way it’s dominated China with WeGame.
Can anyone stop this train? Will Tencent eventually become the single most dominant force in gaming, is it perhaps already? Let us know your thoughts!