CHINA TOPIX

12/22/2024 10:09:06 pm

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Tencent Brings Supercell's 'Crash Royale' to China

Tencent brings Supercell Oy's newest game 'Clash Royale' to China.

(Photo : YouTube Screenshot) Tencent brings Supercell Oy's newest game 'Clash Royale' to China.

Tencent Holdings Ltd. has brought Supercell Oy's newest mobile game to China, its first joint venture after the Chinese firm agreed to buy the game maker for $8.6 billion.

Just this week, China's biggest online gaming firm officially added the Finnish game maker's Clash Royale to its social messaging platforms, namely, WeChat and QQ, where users can download games.

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The Wall Street Journal noted the quick collaboration between the two companies, which will allow Supercell to bring its highest grossing mobile offerings, such as Clash of Clans, to Tencent's hundreds of millions of users in the mainland.

Experts have noted that this also means an increase in revenue for Supercell, which Peter Warman, CEO of Newzoo, a videogame market research firm, estimated to reach to as much as $1 billion.

"In China, nobody has the power that Tencent has when it comes to bringing users to games," he said.

China is currently the biggest mobile games market in the world, with a reported revenue of $7.1 billion in 2015. The figure is expected to rise by 41 percent to 10 billion this year, according to a Newzoo study.

Despite the fact that Supercell only has four games, its earnings surmount to as high as $766 million in 2015 on revenue of about $2. 4 billion, thanks to its ability to keep its players engaged and to extend the shelf lives of its games through regular updates.

While Supercell's games are free to download, its income is generated through charging for virtual coins used to upgrade characters' weapons or abilities.

Meanwhile, this will also add to Tencent's growing list of mobile games portfolio. In a May 2016 report, Tencent topped the list of the most installed and highest grossing Android games based on revenues in China. Tencent now accounts for a whopping 44.5 percent of all the revenues of China's top 100 highest grossing Android games in May with 23 titles from the top 100.

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