First, let’s check out the highest 10 video video games in 2023 worldwide:
- The Legend of Zelda: Tears of the Kingdom
- Hogwarts Legacy
- Elden Ring
- Name of Responsibility: Trendy Warfare II
- Fortnite
- Genshin Influence
- League of Legends
- Roblox
- Apex Legends
- PUBG Cell
And right here’s Tencent’s possession:
- Fortnite – Partially owned (40% stake in Epic Video games)
- League of Legends – Totally owned (Riot Video games)
- PUBG Cell – Partially owned (developed by Tencent’s subsidiary, Tencent Video games)
- Genshin Influence – Partially owned (miHoYo has some funding from Tencent)
In abstract, out of the highest 10 video video games in 2023, Tencent has full or partial possession of 4 video games.
World’s Second Largest Video Sport Firm
In 2023, the annual income of Tencent Interactive Leisure reached $25.5 billion, roughly 85% of its prime rival Sony Interactive Leisure, making it the world’s second-biggest online game firm by income. This isn’t precisely information: Tencent already turned the second-largest online game firm on this planet by income six years in the past, again in 2018.
Whereas Sony beneficial properties an enormous chunk of income from its {hardware} gross sales, together with PlayStation 4/5, equipment, and VR headsets, solely 25% of its yearly income comes from digital video games, DLC, and in-game purchases. Tencent’s Leisure division, nevertheless, beneficial properties 80% of its income from cell and PC video games.
So how did Tencent turn out to be the world’s second-biggest online game firm?
The reply is: acquisition.
Tencent acquired vital stakes in main sport corporations like Riot Video games (100% possession of “League of Legends”), Supercell (84.3% of “Conflict of Clans”), and Epic Video games (40% of “Fortnite”). These investments introduced extremely common and worthwhile video games beneath Tencent’s umbrella, considerably boosting its market share and income.
What Video games does Tencent Personal
Right here’s an entire record of the video games that Tencent personal or partially personal:
| Sport Identify | Developer Firm | Yr of Purchase | Present Share % | Nation | Income/Price |
| League of Legends | Riot Video games | 2011 | 100% | USA | $1.75 billion (2022) (TechNode) |
| Conflict of Clans | Supercell | 2016 | 84.30% | Finland | $1.4 billion (2021) (TechNode) |
| PlayerUnknown’s Battlegrounds | Bluehole | 2017 | 11.50% | South Korea | $1.5 billion (2022) (TechNode) |
| Path of Exile | Grinding Gear Video games | 2018 | 80% | New Zealand | $108 million (2021) (TechNode) |
| Fortnite | Epic Video games | 2012 | 40% | USA | $5.8 billion (2022) (TechNode) |
| Name of Responsibility: Cell | Activision Blizzard | 2013 | 5% | USA | $1 billion (2021) (TechNode) |
| Black Desert On-line | Kakao | 2018 | 13.50% | South Korea | $1 billion (2021) (TechNode) |
| Warhammer: Vermintide 2 | Fatshark | 2019 | 36% | Sweden | $75 million (2022) (TechNode) |
| Elite Harmful | Frontier Developments | 2017 | 9% | UK | $100 million (2021) (TechNode) |
| Cities: Skylines | Paradox Interactive | 2016 | 5% | Sweden | $20 million (2021) (TechNode) |
| Conan Exiles | Funcom | 2020 | 29% | Norway | $65 million (2021) (TechNode) |
| Ring of Elysium | Tencent | 2018 | 100% | China | $20 million (2022) (TechNode) |
| Crossfire | Smilegate | 2008 | Publishing Rights | South Korea | $12 billion lifetime (2018) (TechNode) |
| Honor of Kings | TiMi Studios (Tencent) | 2015 | 100% | China | $10.7 billion (2024) (TechNode) |
| Area of Valor | TiMi Studios (Tencent) | 2016 | 100% | China | $140 million (2018) (TechNode) |
| Moonlight Blade | Tencent Video games | 2015 | 100% | China | $100 million (2021) (TechNode) |
| Chess Rush | Tencent | 2019 | 100% | China | $15 million (2022) (TechNode) |
| The King of Fighters Future | Yinhan Video games | 2017 | Publishing Rights | China | $10 million (2021) (TechNode) |
| Warframe | Digital Extremes (beneath Leyou) | 2020 | 100% | Canada | $80 million (2021) (TechNode) |
| Gears Techniques | Splash Harm (beneath Leyou) | 2020 | 100% | UK | $50 million (2021) (TechNode) |
| Miniclip | Miniclip | 2015 | Majority Stake | Switzerland | $50 million (2022) (TechNode) |
| Roblox | Roblox Company | 2020 | Undisclosed | USA | $2.2 billion (2021) (TechNode) |
| Sumo Digital | Sumo Group | 2021 | 100% | UK | $1.28 billion (2021) (TechNode) |
| Sharkmob | Sharkmob | 2019 | 100% | Sweden | $10 million (2021) (TechNode) |
| Yager | Yager | 2020 | Undisclosed | Germany | $20 million (2022) (TechNode) |
| Klei Leisure | Klei Leisure | 2021 | Majority Stake | Canada | $10 million (2021) (TechNode) |
Solely three of all these video games have been developed by the corporate itself. All the opposite sport titles come from the developer corporations it acquired as early as 2008.
Cash is the facility right here. However not so simple as that.
Numerous Acquisition
From the desk, you possibly can see that their acquisition entails a various portfolio that features numerous genres and platforms: From cell video games like “Honor of Kings” and “PUBG Cell” to PC and console video games like “Fortnite” and “League of Legends,” Tencent covers a variety of participant pursuits, which helps safe a big consumer base and constant income streams.
And it’s not simply the sport style, Tencent expanded its market presence internationally by means of each acquisitions and partnerships. By investing in corporations exterior of China and collaborating with international builders, Tencent penetrated new markets and leveraged worldwide gaming developments, enhancing its international footprint.
And lastly, Monetization Methods. Tencent has mastered numerous monetization methods, together with in-app purchases, subscriptions, and promoting. Its video games are designed to encourage microtransactions, which considerably enhance income. This, mixed with its skill to scale these fashions throughout its huge consumer base, has contributed to its monetary success within the gaming sector.