Social games help drive growth for China's Tencent network

Before you go, we thought you'd like these...
Before you go close icon
The largest social network in the world's largest country just keep getting, um, larger. And social games are a big part of that ever-increasing largeness, according to the latest financial results from China's TenCent.

Sure, services like instant messaging, bundled SMS packages and events like the World Cup also contributed to Tencent's 65% increase in year-over-year for the first half of 2010. But their latest financial report highlights many areas where social games helped drive growth, including:
  • Tencent mobile business, which saw revenue from mobile social games increase.
  • Tencent's QZone blogging platform, where revenue increases were "mainly fueled by enhancements in bundled privileges relating to social games."
  • Tencent's online game revenues increased due to 5.9% on the strength of "improved monetization" for games like Cross Fire. These games are expected to do even better in the third quarter because of the "improved seasonality" of the summer school holiday.
  • "Our recently launched game titles, namely Dragon Power, a hardcore 2D MMOG, and World of Fantasy, a self-developed MMOG, also contributed to the growth in revenues."
It's not all peaches and cream for Tencent gaming, though. Looking ahead, the company expects "the success rate and extent of success for new game titles may decrease" because of "slowing industry growth, intensifying competition and increasing sophistication of gamers." And the company has recently come under fire for rampant game copying and efforts to push smaller players out of the market. Remind you of anyone?
Read Full Story

People are Reading