Tencent, NetEase eye global breakthroughs in mobile gaming

Tencent generated revenue of 40.39bn yuan in the three months to September 30, including 18.17bn yuan from its online and mobile games business

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Shenzhen-based Tencent is banking on its acquisition last year of a controlling interest in Finnish mobile game developer Supercell to push its initiatives worldwide. Photo: Reuters

Published: 12:45pm, 3 Jan 2017Updated: 10:24pm, 3 Jan 2017

Tencent Holdings and NetEase are looking to ratchet up their international mobile gaming expansion plans this year, using two very different strategies, to reinforce their position as China’s two largest video game providers.

Shenzhen-based Tencent is banking on its acquisition last year of a controlling interest in Finnish mobile game developer Supercell to push its initiatives worldwide, while Beijing-headquartered NetEase is expecting to attract a global audience with its in-house developed portfolio of titles across a variety of genres.

“The importance of quality game content is becoming more pronounced ... [as] players’ tastes become more demanding,” research analysts at Nomura said in a report last month.

Apart from being Nomura’s top picks in China’s video game industry, Tencent and NetEase were also the two largest Chinese game companies by revenue in the third quarter of last year.

Internet giant Tencent, which also operates popular social messaging platforms QQ and WeChat, generated total revenue of 40.39 billion yuan (HK$45.09 billion) in the three months to September 30, including 18.17 billion yuan from its online and mobile games business.