Tag: mobile gaming

Tencent to bring more mobile games and free video streaming to WeChat and QQ

| November 11, 2015

Tencent is finding success in offering inexpensive content

Tencent is one of China’s largest Internet and commerce businesses, but it does have strong competition from others that have established a foothold in both of these sectors. In order for Tencent to beat out the competition, the company is beginning to focus on providing consumers with inexpensive entertainment, ranging from mobile games to free video streaming services. Tencent expects to see significant growth in the coming year, despite the slowing economy in China.

Mobile games and free HBO streaming are likely to generate strong interest among consumers

Tencent is responsible for the massively popular WeChat and QQ messaging applications. Both of these apps will soon support new mobile games that are coming to the country. They will also offer free streaming of HBO’s successful “Game of Thrones” series. Mobile games, in particular, are likely to drive significant growth, as many consumers in China prefer to play these types of games because they represent a very convenient form of entertainment.

China’s economy is growing slowly

Tencent - Mobile GamesBy coupling mobile games with free video streaming through WeChat and QQ, Tencent expects that it will see a 28% surge in sales. This is four times faster than the rate of domestic economic growth in China. The country’s economy is currently growing at the slowest rate it has seen in 25 years. Several companies have managed to find success despite the slowing economy through a focus on the mobile sector. These companies are supporting mobile commerce, as well as various forms of mobile media.

Mobile games continue to find success in China

Mobile games are likely to become a primary focus for Tencent, but not the company’s sole focus, of course. Tencent has a long history of supporting mobile gaming and by expanding the capabilities of its WeChat and QQ apps, it will likely connect better with gamers in China. Many new games are coming to China, with developers seeing significant promise in the country. This has made China one of the fastest growing markets for mobile games in the world.

Activision Blizzard may enter mobile games space with recent acquisition

| November 10, 2015

Activision Blizzard acquires King Digital

Activision Blizzard, a leading publisher of games and parent company of both Blizzard and Activision, has successfully purchased King Digital, makers of the massively popular Candy Crush franchise of mobile games. The company purchased King Digital for $5.9 billion, which is more than Disney paid for the rights to the famed Star Wars franchise. Mobile games are becoming a prominent focus for many companies involved in the game industry, as these particular games have proven to be quite lucrative.

Mobile games market expected to reach $55 billion by 2019

According to Activision Blizzard, the mobile gaming space is expected to reach $36 billion this year, growing to $55 billion by 2019. This explosive growth is creating a great deal of interest among investors, as mobile games could represent a major return on investment in a relatively short amount of time. Investors have been pressuring Activision Blizzard to enter into the mobile games market for several years, but the company has only done so in a limited capacity, focusing its efforts on its more popular franchises for consoles and PC.

Mobile games are very simplistic and do not appeal to the core audience of Activision Blizzard

Mobile Games AcquisitionOne of the reasons that Activision Blizzard has been slow to enter into the mobile games space is because its most popular games are not suited for mobile devices. The attraction of these games are their graphics, immersive experiences, and interactive multiplayer options. Mobile devices have very limited capabilities when it comes to providing an expansive and immersive experiences, but they excel at offering consumers access to easy-to-play and simplistic games, in both style and mechanics. Moreover, Activision Blizzard’s core audience is not incredibly involved in mobile games, as they prefer to play their games on consoles and computers.

King Digital could help Activision Blizzard break into the mobile gaming space

The purchase of King Digital may allow Activision Blizzard to begin establishing a strong presence in the mobile gaming space. In the past, King Digital saw major success with its mobile games, but has struggled to replicate this success after 2014. The company has developed some 200 mobile games, but only its Candy Crush franchise has done well, both financially and in terms of player adoption.