Tencent’s PC Games Revenue is Larger than Reports Reflect
According to Tencent’s Q1 2017 financial release dated 17 May 2017, total online games revenue in the first quarter was 22,800 million RMB ($3,360 million). That’s $3 billion in one quarter alone, just from online games! The financial report says that PC client-based games revenue was 14,100 million RMB ($2,070 million) and mobile games revenue was 12,900 million RMB ($1,900 million) – and clearly this does not add up to 22,800 million. This caused confusion among financial and industry analysts following the Chinese games market and major game publishers: 14,100+12,900=27,000 ($3,980 million), but the total was only 22,800 ($3,360 million). Where was the additional $620 million? Niko analysts looked into it and our analysis was confirmed by Tencent. Read the 1,200 word article on our blog.
Amazon in Singapore
Amazon Prime is now available in Singapore as Amazon takes its first steps into Southeast Asia, going head-to-head for the first time with Alibaba (through Redmart, owned by Lazada/Alibaba). Singapore’s Amazon Prime service includes two-hour delivery on thousands of products and it will initially be available without a subscription.
July 26-29 China held the massive annual conference for the digital games industry, ChinaJoy. Niko Partners had several team members in attendance. Lisa gave two presentations and Niko collaborated with SuperData to provide the global view on top of the Asia expertise. The first was on the Global Games Market and the second was on Esports – contact us for more info on those presentations. Intel had a huge presence at the show, and there were giant booths with loud music and stages with competitive gaming from what seemed like hundreds, but possibly was only several dozen, games companies. If you have never been to ChinaJoy it is difficult to explain the size, volume, and scope of the show to you, but there were full schedules of presentations in addition to all of the show of games open to professionals and to consumers several days in a row. Esports was certainly an important theme throughout, and VR had some focus too.
Dota 2 Makes Newbie-Friendly Changes
The International, the world’s biggest esports tournament in terms of prize winnings, will be held next week by Valve Corporation for its game, Dota 2. In order to support growth for the game, Valve has begun making changes to allow the game to be friendlier for newer players. A new player is now restricted to a specific set of 20 heroes for their first 25 games and they will also be paired with gamers who have consistently high behavior scores, per Valve’s algorithms.
Niko’s Latest Analysis on China’s Esports Market
The China Esports Market Topic Report, the fourth of five companion reports to Niko’s 2017 China Digital Games Market Data Report, is now available. This report can be used by itself, but is intended to be paired with the Market Data Report, in which we published the market size and forecast for PC online, mobile and TV-based games.
With more than 200 million fans and the most top competitors and teams, China dominates the global esports market and is also the most advanced in terms of esports infrastructure and venues. Many of China’s leading companies are investing billions to grow the market. The report explains our analysis on the factors that are driving and inhibiting growth as well as which companies, games, and competitors, both foreign and domestic, are important.
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