TikTok creator ByteDance said to be ramping up video games challenge to Tencent

ByteDance, the world’s most valuable start-up, is said to be preparing the release of two new video games this spring, which could intensify its rivalry with internet giant Tencent Holdings.

The upcoming titles, which represent ByteDance’s debut in the non-casual games market segment, will target both domestic and overseas players, according to a Bloomberg report on Monday that cited people familiar with the matter.

The games pipeline of ByteDance, owner of popular short video app TikTok overseas and Chinese equivalent Douyin, includes massively multiplayer online games with Chinese fantasy elements, according to the report. The Beijing-based company, which has built a team of more than 1,000 for its games operation, has acquired studios involved in that genre including Pangu Game Global and Shanghai Mokun Digital Technology.

Representatives from ByteDance and Tencent did not immediately respond to separate inquiries to comment on Monday.

The latest initiative by ByteDance, which has relied mostly on advertising revenue from its core content businesses Douyin and news aggregator Jinri Toutiao to date, shows how China’s major internet companies are competing aggressively in building ecosystems, consisting of various platforms that can host multiple services to attract new users and keep their existing audience.

Douyin, for example, has already integrated external online shopping links from Alibaba Group Holding’s Taobao Marketplace and Tmall platforms. Alibaba is the parent company of the South China Morning Post.