Over $3 billion of Tencent's overall revenues in Q1 2017 have come from games and all things gaming related. That is more than UbiSoft and Take Two combined for the whole of 2016.
A lot of chatter flies back and forth over the internets, calling the Asian free to play market very profitable. Such claims seem to be a bit of an understatement, as a lot of western businesses pale in comparison with with what Tencent reports on their first quarter of 2017. Here is the full quarterly report for all those among you that juggle numbers and financial lingo better than Telxvi does.
Tencent's Online Games Division generated revenues of $3.3bn in Q1 2017.— Daniel Ahmad (@ZhugeEX) May 17, 2017
More than Ubisoft and Take Two combined for the whole of 2016. pic.twitter.com/lXt8sKa9PG
For the uninitiated, Tencent is currently the largest gaming company in the world, followed by Sony and Activision Blizzard, with a decent gap between the first two. A lot of western companies are trying to breach the market, some on their own and some through partnerships with Tencent, like Paradox did earlier this year. Tencent is likewise breaching right back at the west, and their mobile game Honor of Kings was the most downloaded app on the iOS AppStore in that same incredible first quarter of 2017.
Strangely enough, a lot of the games that made the Chinese giant what it is today could almost be considered shovelware by western standards. But who can argue with over $2 billion in profits over such a short time?