Tag: newzoo

The tech giant from China is taking aim at gamers and doesn’t plan to slow down any time soon.

Tencent Holdings Ltd. has already grabbed hold of the top spot when it comes to being the leader in the mobile games category in China, but now it is stepping outside its home borders and is aiming to lead the way throughout other marketplaces, as well.

The company intends to start exporting games made in China into the United States and other markets.

In order to accomplish this goal, Tencent is working with San Francisco mobile games publisher, Glu Mobile Inc. Back in April, Tencent purchased a considerable stake in that company and they will now be working together to bring “WeFire”, Tencent’s most successful shooting game app, into the United States as well as other Western countries in 2016. Another one of its games – though the name has not yet been revealed – will be taken into the Japanese market next year by way of Aiming Inc., a local mobile game publisher.

Should Tencent be successful in taking its mobile games into other countries, this could change the entire marketplace.

This will also provide Tencent with a powerful new avenue of growth as the current global mobile gaming marketplace is currently expected to grow to about $30.1 billion this year. That would mean that the figure would nearly have doubled since 2013, when it had been $17.6 billion. This, according to Newzoo research firm statistics.

The WeFire game app from Tencent is currently the most successful shooting game in China. Now it will be brought to the U.S. and other countries in order to go up against the top games in those markets. When a top grossing game reaches a leading spot in a specific market, it can bring in over $1 billion in revenue. However, when it becomes a global sensation, that figure can rise to $3 billion or even $4 billion, said the chief exec of the Kabam Inc. U.S. mobile game company, Kevin Chou.

That company intends to step into the mobile games market in China, next year. Alibaba Group Holding Ltd, a massive rival to Tencent, has a minority stake in Kabam.

Mobile games may be the rulers of the gaming industry in 2015.

According to market research firm, Newzoo, the mobile gaming industry may be exceptionally strong next year, as mobile games are expected to beat console games in revenue, hitting the $30.3 billion mark in 2015, an increase from the anticipated $25 billion in 2014.

There has been strong year-to-date growth in both mature and emerging markets for tablet and smartphone games.

Compared to the predictions of SuperData Research, the Amsterdam-based Newzoo has greater optimism when it comes to mobile games. Newzoo’s rival, SuperDatat Research, expects that mobile games will only reach $21.1 billion by the end of 2014. That being said it is anticipated that by 2017, games for mobile devices will hit $40 billion.

According to the newly revised 2014 Newzoo forecast, Western Europe’s mobile games market revenue is anticipated to grow 47%, while North America’s is anticipated to grow 51%. Of all the markets, Southeast Asia and China are predicted to be the fastest growing and will expand by 86%

Newzoo credits the high mobile growth rate to “organic growth” for boosting the market in general and “cannibalistic growth”, which comes at the cost of other segments. Spending for massively multiplayer online games and online PC games is moving toward tablets and smartphones, while social, casual and handheld console gaming have weakened.

Apple mobile gaming is doing better than Nintendo.

It also appears that the game revenues of Apple could actually be two times greater than Nintendo in 2014. The electronics giant is expected to produce $4 billion in revenue from mobile games sold in iTunes. Meanwhile, Google may generate game revenue totaling $3 billion this year. On the flip side of the coin, Nintendo’s revenues were $2.4 billion in 2013 and this number is predicted to drop in 2014.

Newzoo CEO Peter Warman commented that in the mature Western mobile gaming markets, the battle between Android and iOS is shifting its focus to tablets. Although the iPad gives iOS the advantage in general mobile game spending, the Android market is split across diverse devices and operating systems.