Chinese internet firm Tencent has beaten global competition to be ranked as the number 1 online game provider.
According to a report by global gaming market research firm Newzoo, Tencent saw annual growth of 45% during 2013 awarding the Chinese firm an 8% global market share of the $70.4 billion worth global online game industry. The growth is impressive given Tencent was ranked 5th in 2012 coming behind more traditional competitors Activision Blizzard, Microsoft, Electronic Arts and Sony.
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“Tencent has shown very consistent quarterly revenue growth for a few years in a row, due to its focus on online free-to-play games and, more recently, mobile games. It is much less dependent on individual blockbuster releases than the traditional publishers and also on sales during the key Christmas holiday period. At the same time, new opportunities arise in China for Western IP as the market opens up slightly and mobile devices provide a new potential entry point ”.- Peter Warman, CEO Newzoo Newzoo.
Tencent has also been focusing on local growth in China in other industries it focuses on such as mobile social networking, and mobile payments. Tencent is also rumored to acquire a substantial share of online marketplace JD.com to compete with local rival Alibaba.