Tencent sharpens focus on ‘evergreen’ video games in mainland China as domestic industry matures

In 2023, mainland video game sales increased 14 per cent year on year to 303 billion yuan, according to data from the Game Publishing Committee of the China Audio-Video and Digital Publishing Association. That was in stark contrast 10 years ago, when the industry saw a nearly 40 per cent annual growth amid the rapid expansion of mobile internet users in the country.

Tencent’s acquisition strategy in the video gaming sector has also changed as a result, according to Ma, who is also responsible for video game publishing unit Tencent Games’ international distribution.

“In 2007, when China was still an emerging market … everyone paid more attention to the short term, and the companies we invested in basically achieved [good] results within two or three years,” Ma said. “Today, we’ve extended the timeline, and I am very open to plans which last five to 10 years.”

“When the industry pays more attention to long-term opportunities, you need to have faith, believe in it, love it and persist with it for a long time to reap the fruits,” he said. “This can discourage some [industry players], but the benefit here is that we can see who really has faith over the long term.”

DnF Mobile has already achieved US$9.86 million in weekly revenue to rank as the No 3 top-selling game on the China App Store, behind Honour of Kings and Peacekeeper Elite with revenue of US$12.96 million and US$12.15 million, respectively, according to Qimai’s estimates.