Tencent kicks off mobile games testing for WeChat
Hopes pinned on first batch of titles to draw revenue from WeChat and Wireless QQ services
Tencent, China's largest listed internet company, has begun testing a much-anticipated mobile games platform for its popular WeChat and Wireless QQ communications applications.
The platform, along with the payment system supporting it, will drive the transformation of the two free-to-use online services into fully fledged, revenue-generating operations for Shenzhen-based Tencent.
We believe it is possible that Tencent could leverage its strength in social networking, communications and data mining capability to create viral traction for its games
In a research note published yesterday, Barclays said Tencent appeared set to release its initial batch of mobile games for testing in successive stages, to be followed by another batch.
"We believe it is possible that Tencent could leverage its strength in social networking, communications and data mining capability to create viral traction for its games," Barclays said. It added that revenue from the new platform could be "at least one to two more quarters away".
Hong Kong-listed Tencent unveiled the mobile games platform last week at its application developer conference in Beijing, where company president Martin Lau Chi-ping said the firm's own payment system would be extended to its updated wireless platforms.
WeChat, which has nearly 400 million users in more than 200 markets, is a social mobile application for smartphones and media tablets that competes against Line and WhatsApp. Barclays said it expected WeChat version 5.0 to be available soon.