Tencent and NetEase's revenue from the international market jumped by 382% in 2018
Problems in China forced Tencent and NetEase to strengthen their presence in the international market. Thanks to this, their total revenue from mobile games in foreign markets jumped by an astronomical 382% this year.
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This is reported by GamesIndustry with reference to the IHS Market report.
According to the publication, from January to mid-November 2018, Tencent and NetEase earned $376 million on mobile games excluding China. For the same period a year earlier, their revenue was much smaller — $78 million.
Most of the total earnings came from NetEase — 72%. Analysts explain the low share of Tencent by the failure Arena of Valor in Western markets. At the same time, in native Chinese, this is the main source of earnings for Tencent.
Despite the high dynamics of sales, these amounts continue to be insignificant in relation to the earnings of companies in China. They account for only 3% of the combined revenue of Tencent and NetEase from mobile games.
In order to provide significant revenue from international markets, which could compensate for the declining dynamics on the local, companies still have a lot to do.
Director of Analytics at IHS Market
Recall that the slowdown in the Middle Kingdom is due to the suspension of the issuance of licenses for the publication of games in the country since the spring of this year. Without this license, local app stores are not ready to publish projects.
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