ByteDance has invested in the mobile gaming business through major acquisitions and has been successful outside of China.
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According to data analytics company Sensor Tower, TikTok owners generated $ 1 billion in player spending across mobile games between June 21, 2021 and June 20, 2022. This is a 16% increase from the same period last year. This number includes data from Apple’s App Store and Google Play, but not from third-party Android stores in China.
ByteDance, best known for its short video app TikTok and the Chinese version of Douyin, aims to aggressively expand into mobile games, a territory dominated by Tencent and NetEase in China. Earlier this year ByteDance has set up a dedicated game business unit in-house..
Last year, ByteDance Acquired major game studio Moonton And C4 is helping to significantly boost overseas efforts by purchasing popular games as part of the deal.
Most of the player spending was spent on games acquired by ByteDance. Mobile Legends: Bang Bang generated $ 317.7 million, accounting for 32% of the $ 1 billion figure annually, Sensor Tower said. C4 Girls Chronicles: Idol Heroine, followed closely by second.
“ByteDance’s deal with mobile legend developer Moonton and Girls Chronicle Studio C4 has revolutionized,” Craig Chapple, a mobile insight strategist at Sensor Tower, emailed CNBC.
“The game business is building so fast that it’s already become an important mobile game publisher, especially in China and Asia. Of course, there’s a long way to go to catch up with big names like NetEase and Tencent, but in the right direction. . “
Comparing June 21, 2021 and June 20, 2022, players spend $ 7.9 billion globally on Tencent mobile games, compared to NetEase’s $ 1 billion compared to ByteDance’s $ 1 billion. That was a total of $ 3.1 billion.
ByteDance has been a global success with the TikTok app, and the Beijing-based company is beginning to make games a success thanks to these acquisitions.
According to Chapple, the company’s largest market is in Asia, with Japan accounting for 34% of players spending on mobile titles, China second and the United States third.
“What I find most interesting is how important the deal between Moonton and C4 was in its international expansion,” he added.
Last year, Moonton’s largest mobile legend revenue market was over $ 50 million in the United States, according to Sensor Tower data. Meanwhile, the C4 Girls Chronicle: Idol Heroine generated $ 303.5 million in Japan during that period, according to data.
International expansion is key to ByteDance as Chinese regulators are increasing surveillance of the domestic gaming sector.Last year, Beijing said that children under the age of 18 are only allowed to play online games. Up to 3 hours a week..And the Chinese game industry Just born from months of approval freeze.. In China, regulatory approval is required to monetize a game.
These rigorous steps have hit Chinese game giants, with Tencent recording the slowest revenue growth ever. Second quarter of this year..
Both Tencent and NetEase have Looking to the international market for growthA tactic that ByteDance appears to duplicate in the headwinds of home regulation.
“The company expanded its business both in China and abroad last year. In the face of regulatory challenges in China, ByteDance could join Tencent and NetEase to further expand its business internationally. This is what the company already has a lot of experience and success with. With Tik Tok. “