Asia
Tencent’s next level up: fewer big foreign franchise games, more in-house
In a sea change at China’s Tencent (0700.HK), opens new tab, an easy-to-play game of cute characters tackling obstacle courses has taken precedence over developing a big-budget sophisticated foreign franchise for smartphones.
Since late last year, the world’s largest video games company has, according to sources, redeployed hundreds of people from the team developing “Assassin’s Creed Jade” for mobile – a multi-year project with France’s Ubisoft (UBIP.PA)
They are now working on recently launched “DreamStar” – Tencent’s answer to rival NetEase’s (9999.HK), hit “Eggy Party” and the company’s most high-profile attempt to date at the so-called party game genre which offers simple gameplay, minigames and encourages players to hang out and chat.
As a result, “Assassin’s Creed Jade” – an action-adventure game set in ancient China that has been under development for mobile for at least four years – will likely be released in 2025 instead of this year, according to three sources familiar with the matter. They were not authorised to speak to media and declined to be identified.
The redeployment of resources highlights the trends forcing a strategic pivot at Tencent. Firstly, developing big-name Western franchises for mobile phones tends to yield thin margins.
At the same time, rivals have had breakout hits with ostensibly niche products that offer new takes on gaming such as as NetEase’s “Eggy Party” and miHoYo’s anime-style fantasy game “Genshin Impact”. Moreover, the games were developed in-house so their profits are all their own.
Tencent had, for years, great success by developing for smartphones international hits like Activision Blizzard’s shooter game “Call of Duty” and the battle royale game “PUBG” by South Korea’s Krafton (259960.KS).
But such franchise games – called IP (intellectual property) games – are costly to make. Royalty fees of 15% to 20% of sales are typical, Apple’s (AAPL.O), opens new tab App Store takes a 30% cut while marketing and user acquisition expenses can cost another 30% to 40%, the sources said.
After a string of IP game setbacks, Tencent plans to be more selective. “We’re focusing on fewer bigger budget games. Typically, we’re seeking to make the biggest bets around games that either iterate on a successful IP … or games that are iterating around proven gameplay success within a niche and taking those to a more mass market,” Tencent Chief Strategy Officer James Mitchell told an earnings call on Wednesday.
Tencent is now also pushing for royalty fees to fall to under 10% of sales in some negotiations, according to one person with direct knowledge of the matter. “That would have been almost unthinkable just a few years ago. Tencent used to be far more generous,” the person said.
Tencent declined to comment on details of its strategic shift.
SETBACKS AND BAMBOO SHOOTS
On Wednesday, Tencent reported a slight decline in fourth-quarter gaming sales and also flagged that overall gaming revenue this quarter would be soft compared with the same period last year when gaming sales surged as pandemic restrictions were lifted.
Pony Ma, Tencent’s founder and chief executive, has been blunt that the company’s video game division – which last year generated 180 billion yuan ($25 billion) in sales or around 30%of overall revenue – needs to do better.
Competitors have continued to create new products, “leaving us feeling we have achieved nothing,” he told a stadium of employees in Shenzhen at the company’s annual meeting in January, according to a separate source with direct knowledge of the event.
That month, Tencent also launched its “Spring Bamboo Shoots Project”, aiming to incubate in-house games with novel gameplay and offering budgets of up to 300 million yuan ($42 million) per game. While that is much less than budgets of 1 billion yuan for a major franchise, the initiative signals Tencent is willing to take more risks on non-conventional game design, the sources said.
Some major setbacks have only increased the sense of urgency for change.
Last year, Electronic Arts (EA.O), discontinued “Apex Legends Mobile”, a game developed by Tencent, with executives at the U.S. firm saying it had fallen short of expected quality.
In December, Tencent axed development of a mobile game based on the “Nier” franchise from Japan’s Square Enix (9684.T), in part because the Chinese firm struggled to find a compelling monetisation model given its expensive development costs and franchise rights, sources have said.
“Mobile games studios have learned that IP is not the magic bullet for user acquisition it once was,” says Serkan Toto, founder of game industry consultancy Kantan Games.
Tencent has also seen a key in-house game bomb. “Undawn”, a zombie apocalypse shooting game that Hollywood star Will Smith was hired to endorse, flopped spectacularly despite having a budget of close to 1 billion yuan with more than 300 developers, according to two of the sources.
Last month, one year since its launch, “Undawn” brought in revenue of just $287,000, according to research firm Appmagic.
Western companies have also started to shift away from outsourcing mobile game development to Chinese companies like Tencent. Microsoft’s (MSFT.O), Activision Blizzard, for example, has just launched “Call of Duty Warzone Mobile” which will compete directly with Tencent’s “Call of Duty Mobile”.
Adding salt to the wound, Tencent’s top two games saw revenue slide during the week-long Lunar New Year holidays in February. “Honor of Kings” and “PUBG Mobile”, which are nine and seven years old respectively, suffered 7% and 30% drops compared to the holiday period last year, according to one of the sources who was briefed on the matter.
Source: Reuters
Asia
JETSYNTHESYS WELCOMES GOPAL SRINIVASAN, MADHUSUDANAN R, AND ARJUN SANTHANAKRISHNAN AS CHENNAI FRANCHISE OWNERS FOR GLOBAL E-CRICKET PREMIER LEAGUE SEASON 2
JetSynthesys, a global leader in digital entertainment and technology, announces the addition of prominent industry leaders including Gopal Srinivasan, Chairman of TVS Capital Funds Limited, Madhusudanan R, Co-founder of M2P Fintech and Arjun Santhanakrishnan, Group CEO of GS Global as the team owners for the Chennai franchise in the second season of its popular IP, Global e-Cricket Premier League (GEPL).
Gopal Srinivasan, Madhusudanan R and Arjun Santhanakrishnan bring a wealth of expertise to GEPL’s growing ecosystem. Their acquisition of the Chennai franchise sheds light on the city’s deep-rooted connection to cricket, a sport that goes beyond entertainment to serve as a cornerstone of Chennai’s cultural identity. Their leadership and vision, coupled with their passion for innovation, will be instrumental in shaping the future of cricket esports in India and beyond.
The Global Esports Premier League (GEPL), hosted on the mobile app Real Cricket, JetSynthesys’ category-defining cricket video game, delivers the most authentic, immersive, and feature-rich cricket simulation experience for mobile users. Last year’s tournament attracted over 200,000 registrations and culminated in a rigorous selection process that identified the top 64 players who formed eight teams. The action-packed finale saw these eight teams play-off each other in and compete for global esports glory. With cumulative multiplatform reach of 70mn+, GEPL S1 was also streamed on JioCinema and witnessed a significant viewership of over 1.1mn+ mins.
Mr. Rajan Navani, CEO and founder, JetSynthesys, expressed his enthusiasm about these developments, “We are incredibly excited to have Gopal Srinivasan, Madhusudanan R and Arjun Santhanakrishnan join as the team owners of Chennai franchise. Their combined experience brings a fresh perspective that aligns perfectly with our vision to push the boundaries of cricket esports globally. Their involvement strengthens our resolve to not just grow GEPL, but to create an entire ecosystem where gaming, technology, and cricket intersect to inspire a new generation of gamers.”
The new team owners also shared their excitement about joining the league.
Mr. Gopal Srinivasan commented, “As a firm believer in the transformative power of technology, I’m happy to support the Global e-Cricket Premier League and the Chennai franchise. Esports offers a unique platform to nurture talent and foster inclusion. I look forward to witnessing the incredible skills and passion of our players and expanding India’s influence in the global esports landscape.”
Mr. Madhusudanan R added, “Cricket has always been a unifying force in India, and esports is rapidly transforming how we connect with the sport. Being part of the Chennai franchise in the GEPL allows us to tap into a growing digital audience and offer them a platform to showcase their skills. I am excited about the potential this league holds for fostering talent and pushing the boundaries of competitive eCricket.”
Mr. Arjun Santhanakrishnan said, “eCricket is redefining the boundaries of sports, and I am thrilled to be a part of this journey with the Chennai franchise in the Global e-Cricket Premier League. The blend of cricket, technology, and esports is creating new opportunities for fan engagement and innovation, and I look forward to witnessing the next generation of esports talent from Chennai rise on the global stage.”
Mr. Rohit Potphode, CEO & League Commissioner of GEPL, enthused on the occasion, “We are thrilled to have Gopal Srinivasan, Madhusudanan R and Arjun Santhanakrishnanonboard as the franchise team owners for Chennai. Their participation adds immense value to the league, not just from a leadership standpoint but in terms of fostering innovation and new opportunities for players. As we look ahead to Season 2, we are working hard to expand the league’s footprint and deliver an unparalleled competitive experience that will captivate both players and fans alike.”
The second season of GEPL is set to introduce an expanded team format, new league guidelines, and a more intense competitive framework, building on the success of Season 1. Real Cricket 24 continues to set the standard for cricket simulation with nuanced mechanics, challenging gameplay, and a focus on strategy. The finals for GEPL Season 2 are scheduled for January 2025, where the top teams will once again compete for the prestigious title of ‘e-Cricket Icon’ on a global stage.
Asia
SuperGaming Announces IIT Homegrown Qualifiers Winners; Teams Advance to Compete for ₹2 Crore Prize Pool
Pune, India, 11th December 2024 – SuperGaming is proud to announce the winners of the IIT Homegrown Qualifiers, showcasing India’s emerging esports talent.
The winning teams are:
- Team Rogue – ₹6 Lakhs
- DGE – ₹3 Lakhs
- Moggers – ₹1.5 Lakhs
Sankalp ‘Frosty’ Kore was named the MVP of the tournament with an impressive 43 Kills, taking home a cash prize of ₹1 Lakh for his exceptional performance.
These top teams have secured their spots in the IIT LAN finale, where they will compete for a massive ₹2 Crore prize pool.
In a related highlight, the recent playtest in the Philippines saw Kalidiman Esports emerge victorious, earning their place in the LAN finale and adding an international flair to the competition.
The next segment of the tournament is the IIT Nationals Qualifiers, where players will represent their respective states. Registrations for IIT Nationals Qualifiers (State Open Circuit) are now open. This stage features a prize pool of ₹10,00,000, with the top two teams advancing to the IIT LAN Finale.
Players can register here: https://forms.gle/6MFp6bdeZss22bd97
Through its ‘Clutch India Movement’ SuperGaming continues to elevate the Indian gaming ecosystem by nurturing homegrown talent. This initiative aims to empower homegrown players to compete and excel whilst driving India’s rise in the thriving global gaming industry.
Asia
Delasport Teams Up with Betable Group in UK and Philippines Partnership
Leading iGaming supplier Delasport has agreed a strategic partnership with Betable Group, that will see the pair working closely together in both the UK and the Philippines.
The deal means Betable Group brands in both markets will gain access to Delasport’s comprehensive sportsbook solution, on top of the existing Betable Gaming platform that offers both casino and bingo.
The strategic partnership will initially launch in the Philippines, before expanding to the UK shortly.
“This partnership is a win-win-win for Delasport, Betable, and their customers,” said Delasport’s CEO Oren Cohen Shwartz. “The UK and the Philippines are extremely appealing markets – one is mature and developed, while the other is emerging and full of potential. Thanks to Betable’s professionalism and reach, we can now quickly deliver our award-winning solution to more operators worldwide.”
Charlie Noble, COO at Betable Group, added: “Integrating Delasport’s sportsbook product now allows our partner operators in the UK and the Philippines to offer players a complete gaming experience. We’ve been extremely impressed by Delasport’s sportsbook product, and this partnership underlines our commitment to delivering the very best to both our operator partners and the end user.”
Delasport’s Plug & Play iFrame solution is an operator favourite, due to a range of unique features that sport bettors love to engage with.
-
Balkans1 day ago
Gamanza Games launches in Bulgaria with inbet partnership
-
eSports1 day ago
BETBY ENHANCES ESPORTS EXPERIENCE WITH EXPANDED OUTRIGHTS AND PLAYER PROPS PORTFOLIO
-
Aquisitions/Mergers2 days ago
PolarLotto Acquires Competitor and Strengthens Market Position
-
Latest News1 day ago
3 Day Countdown Starts for Ortak x B.F.T.H. Arena Awards 3.0
-
Compliance Updates1 day ago
New Zealand Introduces Racing Act Changes to Extend TAB NZ Monopoly
-
Latest News1 day ago
Fire up the fun with sizzling wins, multipliers and free spins and a delicious a max win potential of 102,840x
-
eSports1 day ago
Abios enhances esoccer solution with bet builder launch
-
Latest News1 day ago
Kambi Group plc repurchase of shares during 4 December – 10 December 2024