Image source @ Vision China
Business data school, author Wu Minghui, editor Wang Yisu
The competition between byte beat and Tencent is increasingly close to each other.
According to the estimate of Peng Bo, the annual revenue in 2020 is about 175 billion yuan, of which the revenue of game business is 4-5 billion yuan. If calculated by 4 billion yuan, this achievement will surpass Changyou and rank among the top ten game companies in China.
In the follow-up, Zhaoxi guangnian has launched a number of games such as "hot blood street basketball", "war art", "firepower duel", among which "sound jump ball" has been on the top 10 of app store for free for many times, while "Legend of Wonderland ro: the birth of a new generation" launched overseas is said to have a monthly flow of more than 100 million, and byte beat has taken the first step in the development of medium and heavy game content.
In the research and development of game content, there are more than 10 studios, including 6 medium and heavy game studios.
And in the game distribution, the layout is gradually perfect and clear. In terms of the distribution of leisure games, ohayoo has released more than 150 games, with Mau over 80 million; in terms of independent games, byte beat has entrusted its heavy responsibility to the public Pixmain, however, has few opportunities in the public view due to the minority nature of independent games; in the field of cloud games, which is still in its infancy, byte beat also lays out Aoli game. At present, only the most common and important medium and heavy game has not been officially announced.
But on this road, perfect world, the ninth city and NetEase have all done it, but they can't shake Tencent's position. Now, can byte beat become the third pole of Chinese Games?
Dig the backbone, close the company's fast Army
To buy, to buy, is the best way to achieve from scratch in the short term.
In addition, after the merger of Netease Pangu studio into Leihuo studio at the end of 2018, byte beat recruited some core employees of Pangu studio who had developed Oracle, which became the backbone of byte beat's Jiangnan studio in Hangzhou. In Shenzhen, Tencent's headquarters, byte beat also recruited NATO, the former product manager of Tencent mutual entertainment Qiankun game, to be responsible for the construction of game competition system and heavy game distribution.
If digging people is to build a company skeleton, then the most efficient way to build a real working team is to acquire. In 2019, byte beat acquired Shanghai Mo Yu, a subsidiary of Sanqi mutual entertainment, at a price of 110 million yuan. Shanghai Mo Yu, who once developed the novel IP game "choose the sky", with the highest monthly flow of nearly 200 million yuan, became the main body of byte beat Shanghai 101 studio after being acquired.
In addition to the direct acquisition, we also choose the way of shares to further improve the content. A few days after the acquisition of Shanghai Motou, byte beat took a stake in another company, Shanghe, which has made great achievements in women's games, accounting for 45.19%. It is reported that byte beat has acquired or acquired more than 28 game companies so far.
Mobile games start, small program easy to attract money
In the official website of Zhaoxi guangnian, it focuses on nine games with different playing methods.
Among them, "darter", "All Star fight" (SNK), "Naruto: summit duel" and "lingmaozhuan" are IP adapted games, and "the end of the battlefield" (the original "Terminator 2: Judgment Day"), war Art: red tide "," portal man "and" hot blood street basketball "are proxy games. The only remaining" firepower duel "is a self-developed game day and night The form of IP adaptation and proxy may be the main reason to help byte beat quickly open up the situation in the field of medium and heavy games.
(data source: screenshot of the official website of zhaoxiguangnian)
But the number is up, but the effect is hard to say. According to Qimai's data, "dart man" not only topped the app store's free game list on the first day of its launch, but also fell out of the top 100 on the free game list nine days after its launch, now hovering around 130. Other IP adapted games also have a similar fate, and "Lingmao Zhuan" has dropped all the way from the top 15 (free list) when it was launched to the top 1000.
And the game of byte beating agent seems to be mediocre. Take "hot blood street basketball" as an example, although it has been kept within the top 30 in the sports game segment, it quickly fell from the second place on the free (game) list to the 850th place, while other "the end of the battlefield" and "the art of War: red tide" performed worse in their own sub tracks, almost falling out of the top 100.
(data source: Qimai data)
However, in the overseas market, although we also choose the shortcut of re agency, perhaps because the Matthew effect of overseas game industry is not obvious, its overall performance of agency game is better than that of domestic. Among the six medium and heavy games for overseas market, the two-dimensional game "Legend of fairyland ro: the birth of a new generation" developed by Shanghai junmeng network has entered the top 100 in Hong Kong, Macao and Southeast Asia. In the 2020 annual report forecast of Fuchun Co., Ltd., the parent company of Shanghai junmeng network, it clearly shows that its water flow performance is excellent, which confirms the rumor that its monthly water flow exceeds 100 million. However, compared with Netease's "wilderness action" in Japan, Tencent's "Fortress night", "exciting battlefield" and "call of duty Tour" in Europe and the United States, they are still a little thin.
Medium and heavy mobile games need a long time to accumulate. In order to get closer to Tencent, Netease and other game giants in the game field, small program games have become another shortcut. At the end of 2017, wechat opened small games, and "jump" as the first batch of small games became the beneficiary of small program game dividends. In the Spring Festival of 2018, "jump" successfully swiped the screen of major circles of friends and family groups. According to the data released by wechat open class, "Tiao Yi Tiao" was retained for 65% on the next day of that year, 60% on the third day, and 52% on the seventh day. By March 2018, it had 380 million users.
For this reason, tiktok is still started from the interests of the soul, and is drawn into H5 games developers by lower channels. It is reported that the channel fee given by byte jump is 5%, and the first game can be exempted from the channel fee during the first launch period, and the first game also enjoys a certain share discount in the two revenues of advertising and internal purchase, and the discount range is about 10%.
In fact, there are many similarities between WeChat and MAU, which are all the super traffic pools with a MAU above 500 million, and all of them tiktok with social properties. Based on the more generous discounts in front, byte beat has become a rising star in the small program game market, among which many small games such as "my Kung Fu special cow" and "eliminate the virus" have broken through tens of millions, and are becoming the main battlefield for the propaganda of most online red small games.
Can byte become the third pole of Chinese game?
Nowadays, byte beat has been able to compete with wechat games in small program games. In medium and heavy games, which account for more users' time and money, it has the ability of self research and distribution through acquisition and cooperation, and it can basically enter the top 10 of China according to revenue. So, is byte beat likely to become the third pole of China's game industry?
To get this answer, we must first see what barriers exist in the head of the industry and whether the latecomers can break them?
As the absolute king of China's game industry, Tencent has a very thick game barrier. At the strategic level, the game has always been the first level business department of Tencent and one of the strongest cash cows of Tencent. Therefore, Tencent has been eliminating all potential threats through investment and M & A for many years.
Since Tencent established its capital opening strategy after the 3Q war in 2010, Tencent began to invest abroad and set up Tencent venture capital fund in 2011. According to incomplete statistics of private placement, from 2010 to 2020, Tencent has invested more than 700 companies in games and related industries, including Activision Blizzard, which holds a large number of high-quality IP, Epic Games, which is a virtual engine developer, and Betta and tiger teeth, which supplement game competitions. It can be said that all the upstream and downstream companies are caught.
Although under Tencent's carpet investment, there will still be some fish who miss the net, such as MIHA you, who made a popular game "original God", but the impact of the popularity of "original God" on Tencent is only in the first month, pushing "King's glory" out of the top of the income list, but the follow-up is still Tencent's hegemony list, which has no impact on Tencent's game empire. It is reported that Tencent indirectly established equity relationship with MIHA you by investing in apeji.
China's game industry, another pole of Netease, also has its own barriers to competition. From the perspective of business line, Netease, in addition to the absence of small program games, has layout in mobile games, PC games and console games. Its "journey to the west" has long been in the top 10 of the domestic revenue list, while "wilderness action" has long dominated the list in Japan. In addition, Netease also has a layout in the e-sports events. Relying on its games and live broadcasting platform CC, Netease builds the X-game. Although its influence is not as good as Tencent's, sparrow has all five dirty parts.
From a strategic point of view, Netease has also invested in many excellent game companies, including behavior interactive, which develops the PC game "dawn kill machine", Niantic, the developer of mobile game "fairy baokemeng go", which has long occupied the top 10 of the most lucrative game revenue list, and Bungie, which develops the "halo" series of host games And so on, these companies have stronger R & D strength than other investment companies.
Tiktok, referring to the early game of Tencent, which links hundreds of millions of people's social platform QQ to the rapid growth of PC games from QQ game hall to QQ, cross fire, and so on. Now, the flick of the byte beating is a short video platform, and also a live broadcast, an e-commerce, a social platform, and its MAU has exceeded 600 million, which is the same as the QQ of the year. It's quite similar. Netease and even the game companies such as Sanqi mutual entertainment, perfect world and MIHA tour lack such a traffic and central platform, which may be the biggest card for byte beat to become the third pole.
However, for byte beat, the primary goal is to launch more popular high-quality medium and heavy games, so as to make Chanxi guangnian a qualified game company. Let's talk about how to give full play to its product matrix advantages to build a game platform, and even build its own IP platform and E-sports system, so as to open up the upstream and downstream of the game ecology.
In 2018, one third of our advertising business was directed towards games. According to tiktok advertising analysis, game business has become the tiktok advertising industry with the highest proportion of the industry, up to 34.48%; in 2020, according to App Growing statistics, although this figure fell to 13.39%, it is still the first industry of byte beating advertising.
From the perspective of advertising revenue, we can see the potential of business, not only in games, but also in education, culture and entertainment. For example, in terms of entertainment, starting from the tiktok and headlines, the film industry has been deeply involved in the upstream industry chain.
From a single business, horizontal expansion, and then the depth of thickening, byte beating business is still rising ferociously.