Superdata predicts China will buy up more western gaming publishers

    
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Superdata has released a summary of its research on the worldwide digital games market for February 2016, claiming that the digital games market sales have increased by 10% year-over-year. League of Legends, Crossfire, Dungeon Fighter Online, World of Tanks, and Dota 2 lead the pack for “F2P MMO Games” by revenue, while the top-grossing sub MMOs by revenue are World of Warcraft, Lineage, TERA, Star Wars: The Old Republic, and Blade & Soul. Yes, we are likewise puzzled over the classifications.

The firm predicts more sales of western companies to China, headlined by the impending sale of British-owned Jagex to a mining company overseas:

“Chinese companies will scoop up 1-2 western publishers a month from here on. The lesson to be drawn from Chinese mining company Shandong Hongda (600532.SS) in talks to buy RuneScape developer Jagex for $300 million is that it will happen again. The reason: China’s industrial firms are aggressively diversifying as the country’s economic growth slows. Western firms like Jagex allow Chinese companies to expand into new industries and regions. While the 15-year-old RuneScape does not have the mindshare it once did, remaining players continue to spend, and the browser-based MMO earned $6.2 million last month. On March 23, Jagex also released the open beta for Chronicle: RuneScape Legends, the company’s first entry in the $1.3B digital collectible card game market. Given the higher valuation of tech companies in China’s current market, we anticipate several more acquisitions to follow in the months to come.”

As always, we must point out that Superdata is a research firm that sells its data analysis; it doesn’t disclose its methodology or sources for peer review or looky-loos unless you pay for it.

Source: Superdata
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greendavidmiller70
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greendavidmiller70

The reason why Chinese comps are buying US and other countries companies etc is because of the currency devalue happening in China,,expect more.

Ten10K
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Ten10K

Your telling me FFxiv didn’t make that list? … But Tera did.. Yaaa I smell something fishy

DJjazzy
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DJjazzy

corey1 DJjazzy Qarran 
Right but where do you put a buy to play game in their classification grouping? On sub games it looks like they are using sub revenue, on free to play they are using micro transactions.

Bannex19
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Bannex19

I agree with everything about your post.

Damonvile
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Damonvile

SallyBowls1 Damonvile That’s a pretty grim positive, but I guess as long as you’re one of the few a pay check is better than no pay check. For a the gamers I’m not sure it’s a win either way.

SallyBowls1
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SallyBowls1

Damonvile SallyBowls1  But I maintain that the not-going-well CN/DBG did keep employment up – the alternative was shuttering the studio.  
So an industrial company buying a not very successful gaming company is probably doomed to fail.  But the employment will be higher than if the gaming company were drifting down to death without the cash infusion.

schmidtcapela
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schmidtcapela

SallyBowls1 
Actually, depends on how the companies purchasing the game studios act; as long as they either don’t try to interfere with the game development process, or else hire someone with the needed expertise to directly deal with the development process, the fact the parent company is of a wildly different field shouldn’t be much of an issue.

It’s akin to how many of the most successful CEOs don’t have much specialized knowledge in the product their companies sell; they don’t need to, they just need to know how to manage a business, they can hire other people to deal with the technical aspects of their companies’ products.

mysecretid
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mysecretid

I guess I’m not really surprised. 
Western game investors always seem to be searching for the “big score” or the “billion dollar payday”, while eastern investors/companies appear to take more of a “shotgun” approach — have a lot of things on the go simultaneously, in the hope that one or two of them do well enough that the process can continue.

I dunno,. I’m not a businessperson — it’s just what it all looks like from my computer desk.

Cheers,

Damonvile
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Damonvile

SallyBowls1 Will it keep employment up in these companies. If daybreak is any indication of what happens when a company buys a developer for profits we’re in for some pretty dark times in the gaming industry if ppl keep selling out.

We’ll have to wait and see what happens with jagex and how interested they really are in the long term of that company.

MetaDune
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MetaDune

PurpleCopper It’s because a lot of the Chinese gaming companies like to copy and aren’t as experience and developed as KR, US and JP so if you think the games are bad here, they’re worse over there.