Chinese video game giant NetEase is aggressively expanding overseas as its domestic market slows amid tighter regulations. He now has wholly-owned game studios in the US, Europe and Japan, with a focus on mobile and his non-PC games.
Arjun Karpal | CNBC
Netease announced Wednesday that it has acquired a French game developer as the Chinese tech giant continues its aggressive international expansion.
Headquartered in Hangzhou, China, the company acquired Quantic Dream to create Europe’s first wholly owned game studio.
NetEase and its rivals Tencent As the domestic game market in China slows down due to stricter regulations, we are stepping up our efforts overseas.
Over the years, Tencent has invested heavily in acquiring and investing in overseas game companies. NetEase is now catching up.
NetEase has typically focused on PC and mobile games, which are very popular in China. Mobile games account for over half of global gaming revenue. But recently The tech giant is expanding into console games.
According to a press release, the 25-year-old studio will focus on “creating and publishing video games on all platforms, as well as supporting and publishing titles developed by third parties.”
This underscores NetEase’s intention to grow across mobile, PC, and consoles.
The acquisition of Quantic Dream is in line with NetEase’s strategy of acquiring well-known international characters and franchises. Quantic Dream is currently developing a game called Star Wars Eclipse. Based on the Disney space adventure movie. NetEase has already released mobile Games based on Lord of the Rings and Harry Potter.
NetEase’s international move comes as Chinese regulators continue to scrutinize the gaming market, but there are signs of easing.Last year, authorities Restricting how long under 18s can play online games We have frozen the approval of new titles. In China, you need a go-ahead from regulators to release and monetize your game.Them Approval resumed in April.
In an interview with CNBC last yearHu Zhipeng, vice president of NetEase and one of the top bosses of the tech giant’s video game business, aims to capture 50% of the company’s gaming revenue from overseas, up from around 10% today. said.
Competition in the global game market is intensifying.