Tencent set for a rebound in 2019 as hit game Peacekeeper Elite expected to rake in US$1 billion
- Tencent’s overall video games business slipped 1 per cent year on year to US$4.1 billion in the first quarter of 2019
Tencent Holdings looks set to put its gaming business back on track with an estimated US$1 billion in annual revenues from its new title Peacekeeper Elite, as the country’s biggest social media and gaming company continues to shake off the impact of last year’s game licensing freeze.
Peacekeeper Elite, also known as Game for Peace, is estimated to have generated US$150 million in gross revenues in its first month of release, and could potentially bring in US$1 billion by the end of the year, according to a report by Niko Partners.
The title, a patriotic replacement for PlayerUnknown’s Battlegrounds (PUBG) Mobile in the China market, brought in an estimated US$70 million in player spending last month, according to data from Sensor Tower. Tencent had previously been unable to get a mobile version of the PUBG title approved that would allow it to take in fees from game skins and other items.
Games revenue is forecast to show “a notable increase” in the second quarter of 2019 with much anticipated titles like Game of Thrones: Winter is Coming in the pipeline, while the company still awaits approvals to monetise internationally popular games including Fortnite, according to the research firm.
Tencent is also stepping up its investment in e-sports with plans to stage more large scale e-sports events with support from local governments. This business segment would eventually become a “more material and profitable venture” for the company as its infrastructure matures, the report said.
Growth in China’s gaming industry stalled last year amid a regulatory crackdown on internet content and efforts to stem gaming addiction, with Chinese authorities suspending the licensing process for new games for nine months, restarting it in December.