GameMakers Chinese Gaming Giants: Tencent vs. Netease | Pixels & Profits
Aug 18, 2024
Explore the fierce rivalry between Tencent and NetEase, two giants of the gaming industry. Discover Tencent's expansive business strategies and the challenges of penetrating Western markets. Hear personal anecdotes about Tencent's collaborations and internal efficiencies. Get insights into NetEase’s growth opportunities and the competitive dynamics shaping their future. Delve into the regulatory hurdles both companies face within China, revealing the complexities of their global expansion efforts.
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Tencent's Games Are Core Profit Engine
- Tencent derives roughly half its revenue from value-added services, with games making up the majority of that segment.
- Gaming remains a core profit center, not a peripheral business like Xbox is to Microsoft.
World-Class Internal Studio Muscle
- Tencent's internal studios like TiMi and Lightspeed rank among the world's best in technical capability and genre dominance.
- These studios give Tencent structural advantages in genres such as shooters and mobile RPGs.
Glu's Experience With Tencent
- Brian Pignoff recalled working with Tencent when Glu had Tencent board members and close collaboration on UA strategies.
- He described the relationship as helpful for guidance and expertise without heavy-handed control.