Video games: Chinese Tencent surpasses Microsoft to become the world’s largest publisher (study)

by bold-lichterman

Its economic model, different from Microsoft or Activision Blizzard, is at the origin of this success …

tencentThe Chinese group Tencent, which publishes the instant messaging application WeChat in particular, overtook the American Microsoft in terms of turnover generated in the video game segment in 2013, according to a study carried out by the research company specializing in the Newzoo sector. The firm would have generated 5.3 billion sales, more than the 4.7 billion of the giant of Redmond or the 4.6 billion of Activision Blizzard. Sony and Electronic Arts complete the top 5 game publishers.

The progress of the Shenzhen giant has been dazzling. While it generated only $ 600 million in turnover in the first quarter of 2011, against a little less than 1.5 billion for Activision Blizzard, the weights gradually balanced, then reversed in the third quarter of 2013 when the Chinese made twice as much as the Vivendi subsidiary. At the origin of this success: the economic model freemium.

“Tencent has experienced very consistent quarterly revenue growth over the past few years due to its focus on free online games and, more recently, mobile games. It is much less dependent on individual blockbusters than traditional publishers and on sales during the Christmas holidays ”explains Peter Warman, President Newzoo.