Tencent management emphasized that the game industry still has great potential but it is cyclical. When innovation or new supply is insufficient, it may fall into a slump.
Tencent's financial report shows that the core gaming business has shown signs of recovery. Domestic market game revenue reversed the decline of the previous two quarters, increasing by 9% to 34.6 billion yuan, and international market game revenue reached 13.9 billion yuan, achieving a growth of 9%.
Among them, Tencent attributed the growth in the domestic market to the revenue growth of "Honour of Kings" and the successful release of "Dungeon and Warrior: Origins", while the revenue of flagship games such as "Honour of Kings" and "Peacekeeper Elite" also resumed year-on-year growth.
Tencent management mentioned at the earnings conference that the gaming business performed strongly in the second quarter, but the highly challenging business environment the industry has faced in recent years cannot be ignored. Firstly, it is becoming increasingly difficult to launch very successful new games that meet players' expectations, as they must have extremely high quality or differentiated gameplay. Secondly, it is important to sustain the existing franchise and continue to provide innovation for the users.
Management emphasized that the game industry still has great potential but it is cyclical. When innovation or new supply is insufficient, it may fall into a slump.
Huajin Securities released a research report stating that the heat of the hot new games continues to rise, and veteran mobile game community platforms are expanding into the PC market. With the joint effort, it may help the industry heat up and empower the development of the game industry. Steam's pre-sales data is eye-catching, and the performance forecast of "Black Myth" has started to help the continued growth of popularity, it is expected to empower the upstream and downstream technologies and publicity, and help the summer game box office continue to improve. TapTap enters the PC market and cooperates with well-known game IP to develop its own ecosystem. Previously, the TapTap platform focused on the mobile game side. In order to better extend the PC ecosystem layout, TapTap has recently announced the introduction of 4070 cloud computers that can be used on both mobile and PC sides, which is expected to bring more convenience and empower the development of the game industry.
Guolian Securities released a research report stating that starting from May 2024, the domestic game market will enter a product cycle, and the number and volume of new head games will be higher than the same period in 2023. With the release of supply-side initiatives and the rapid growth of small game channels in the middle of the year, the prosperity of the game industry in the second half of the year is expected to continue to rise.
Gaming industry chain enterprises include:
Game industry chain companies include: Tencent Holdings (00700), NetEase-S(09999), Bilibili-W(09626), XD Inc(02400), China Ruyi(00136), Pop Mart (09992), iDreamSky(01119), etc.