Press Release

International Mobile Games Revenue from Tencent and NetEase Rose 382 Percent This Year, IHS Markit Says

Want to learn more?
Have an expert contact you.

The two games publishers face a long road to scale international business, comparable to the opportunity in mainland China

Combined international mobile games revenue for Tencent and NetEase grew by 382 percent, from January through mid-November, 2018, compared to the 2017 calendar year. The companies’ combined international revenues rose from $78 million in 2017 to $376 million in the same time frame, based on a recent analysis of appScatter Group title data by IHS Markit (Nasdaq: INFO), a leading global business information provider.

New games releases have been largely frozen in mainland China since March 2018 because of a stiffening regime of regulations surrounding mobile games usage by minors. For the largest games publishers like Tencent and NetEase, these regulations have underlined the importance of international markets for future growth.

“Tencent and NetEase have begun to build a stronger international franchise for their games in response to the regulatory environment in their domestic market,” said Piers Harding-Rolls, games research and analysis director, IHS Markit. “However, even with this stronger focus, in the opening nine months of 2018, direct international revenues from mobile games represented only 3 percent of the companies’ total mobile games revenue. Both companies still have a mountain to climb to derive meaningful revenues from international markets to offset slowing growth in mainland China.”

NetEase was responsible for 72 percent of this combined company revenue growth, underlining Tencent’s relatively limited success in exporting its games to international markets. A huge hit in the domestic market, Tencent’s multiplayer online battle arena (MOBA) title “Arena of Valor” has failed to ignite Western audiences. Tencent’s PlayerUnknown's Battlegrounds Mobile, “PUBG Mobile” released this year, has performed better than “Arena of Valor” in select markets -- often ranking in the top 50 highest-grossing Apple iPhone games apps in the United States. However, to put its performance in perspective, “PUBG Mobile” represented just 2 percent of Tencent’s overall mobile games business in the third quarter of 2018.

About the data

IHS Markit recently entered into a data-sharing partnership with appScatter Group (AIM: APPS), the intelligent app management platform. AppScatter now provides IHS Markit with country-level mobile apps data to support analysis of the mobile games market, mobile games companies and title performance. The combination of appScatter’s title-level mobile apps data and the extensive expertise of IHS Markit in the app economy and mobile ecosystems will deliver deeper insight into these market opportunities.

####

About IHS Markit (www.ihsmarkit.com)

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2018 IHS Markit Ltd. All rights reserved.

If you prefer not to receive news releases from IHS Markit, please email press@ihsmarkit.com. If you would like more information, read our Privacy Policy.

 
Related Research:
Console hardware: Q3 2018 update
Games Console Sales Database - Premium - Quarterly

Share facebook Twitter Google Plus Linked In Add This Contact Us