Asia
Tencent’s next level up: fewer big foreign franchise games, more in-house
In a sea change at China’s Tencent (0700.HK), opens new tab, an easy-to-play game of cute characters tackling obstacle courses has taken precedence over developing a big-budget sophisticated foreign franchise for smartphones.
Since late last year, the world’s largest video games company has, according to sources, redeployed hundreds of people from the team developing “Assassin’s Creed Jade” for mobile – a multi-year project with France’s Ubisoft (UBIP.PA)
They are now working on recently launched “DreamStar” – Tencent’s answer to rival NetEase’s (9999.HK), hit “Eggy Party” and the company’s most high-profile attempt to date at the so-called party game genre which offers simple gameplay, minigames and encourages players to hang out and chat.
As a result, “Assassin’s Creed Jade” – an action-adventure game set in ancient China that has been under development for mobile for at least four years – will likely be released in 2025 instead of this year, according to three sources familiar with the matter. They were not authorised to speak to media and declined to be identified.
The redeployment of resources highlights the trends forcing a strategic pivot at Tencent. Firstly, developing big-name Western franchises for mobile phones tends to yield thin margins.
At the same time, rivals have had breakout hits with ostensibly niche products that offer new takes on gaming such as as NetEase’s “Eggy Party” and miHoYo’s anime-style fantasy game “Genshin Impact”. Moreover, the games were developed in-house so their profits are all their own.
Tencent had, for years, great success by developing for smartphones international hits like Activision Blizzard’s shooter game “Call of Duty” and the battle royale game “PUBG” by South Korea’s Krafton (259960.KS).
But such franchise games – called IP (intellectual property) games – are costly to make. Royalty fees of 15% to 20% of sales are typical, Apple’s (AAPL.O), opens new tab App Store takes a 30% cut while marketing and user acquisition expenses can cost another 30% to 40%, the sources said.
After a string of IP game setbacks, Tencent plans to be more selective. “We’re focusing on fewer bigger budget games. Typically, we’re seeking to make the biggest bets around games that either iterate on a successful IP … or games that are iterating around proven gameplay success within a niche and taking those to a more mass market,” Tencent Chief Strategy Officer James Mitchell told an earnings call on Wednesday.
Tencent is now also pushing for royalty fees to fall to under 10% of sales in some negotiations, according to one person with direct knowledge of the matter. “That would have been almost unthinkable just a few years ago. Tencent used to be far more generous,” the person said.
Tencent declined to comment on details of its strategic shift.
SETBACKS AND BAMBOO SHOOTS
On Wednesday, Tencent reported a slight decline in fourth-quarter gaming sales and also flagged that overall gaming revenue this quarter would be soft compared with the same period last year when gaming sales surged as pandemic restrictions were lifted.
Pony Ma, Tencent’s founder and chief executive, has been blunt that the company’s video game division – which last year generated 180 billion yuan ($25 billion) in sales or around 30%of overall revenue – needs to do better.
Competitors have continued to create new products, “leaving us feeling we have achieved nothing,” he told a stadium of employees in Shenzhen at the company’s annual meeting in January, according to a separate source with direct knowledge of the event.
That month, Tencent also launched its “Spring Bamboo Shoots Project”, aiming to incubate in-house games with novel gameplay and offering budgets of up to 300 million yuan ($42 million) per game. While that is much less than budgets of 1 billion yuan for a major franchise, the initiative signals Tencent is willing to take more risks on non-conventional game design, the sources said.
Some major setbacks have only increased the sense of urgency for change.
Last year, Electronic Arts (EA.O), discontinued “Apex Legends Mobile”, a game developed by Tencent, with executives at the U.S. firm saying it had fallen short of expected quality.
In December, Tencent axed development of a mobile game based on the “Nier” franchise from Japan’s Square Enix (9684.T), in part because the Chinese firm struggled to find a compelling monetisation model given its expensive development costs and franchise rights, sources have said.
“Mobile games studios have learned that IP is not the magic bullet for user acquisition it once was,” says Serkan Toto, founder of game industry consultancy Kantan Games.
Tencent has also seen a key in-house game bomb. “Undawn”, a zombie apocalypse shooting game that Hollywood star Will Smith was hired to endorse, flopped spectacularly despite having a budget of close to 1 billion yuan with more than 300 developers, according to two of the sources.
Last month, one year since its launch, “Undawn” brought in revenue of just $287,000, according to research firm Appmagic.
Western companies have also started to shift away from outsourcing mobile game development to Chinese companies like Tencent. Microsoft’s (MSFT.O), Activision Blizzard, for example, has just launched “Call of Duty Warzone Mobile” which will compete directly with Tencent’s “Call of Duty Mobile”.
Adding salt to the wound, Tencent’s top two games saw revenue slide during the week-long Lunar New Year holidays in February. “Honor of Kings” and “PUBG Mobile”, which are nine and seven years old respectively, suffered 7% and 30% drops compared to the holiday period last year, according to one of the sources who was briefed on the matter.
Source: Reuters
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Building on 15 years of success, G2E Asia + Asian IR Expo is set to make its highly anticipated return to Macau from May 7-9, 2025, at The Venetian Macao.
The 2025 show will introduce a range of new initiatives, including 100 exclusive product launches debuting in Asia for the first time. These will be showcased across more than 30,000 sqm and will cover the full spectrum of the entertainment and travel industries.
The leading event in Asia is expected to attract over 10,000 visitors from 80 countries and regions. To maximise opportunities for attendees, the event will feature a series of high-impact networking sessions, along with a dedicated business matchmaking team coordinating over 400 pre-arranged meetings to streamline connections.
This year’s show will also introduce the new Gaming Innovation Forum, featuring three full days of sessions that will dive into the latest gaming trends and technologies, all presented by G2E Asia Awards winners and nominees. Located in the exhibition hall, the forum will be accessible to all event attendees.
The G2E Asia Awards celebrates excellence and innovation within the gaming and entertainment industry. The awards will spotlight five prestigious categories, each evaluated by a panel of renowned industry leaders: Best Slot Award, Best Electronic Table Game Award, Best Table Game Award, Best Casino Supply Award and Best IR Tech Solution Award. All award-winning products will be prominently displayed in the exhibition, giving attendees the opportunity to experience them firsthand.
The expanded Asian IR Expo will feature a new Smart Hospitality Technology Experience Zone, offering an immersive and interactive onsite experience. This space will showcase emerging innovations across three unique areas: Smart Reception, Smart Cleaning and Smart Hospitality, each providing guided tours and live demonstrations.
The post 100 Exclusive Product Launches to Debut at G2E Asia + Asian IR Expo appeared first on European Gaming Industry News.
SA Gaming is thrilled to announce the launch of Fish Prawn Crab, a timeless dice game that has captured hearts across Asia for generations. Players can predict the roll of three dice and bet on symbols or combinations to win big.
Different from common dice, the dice in Fish Prawn Crab uses symbols instead of numbers represented by dots. The six faces of a die in Fish Prawn Crab are Fish, Calabash, Tiger, Crab, Prawn and Rooster.
The bet types available include Specific Symbols (betting on a specific symbol appearing face up), Specific Double (a specific combination of two different symbols appearing face up), and Triples of the same color or same symbol.
The post SA Gaming is thrilled to announce the launch of Fish Prawn Crab appeared first on European Gaming Industry News.
Asia
Team Zero Gravity Triumphs in Indus International Tournament Powerplay, Secures Spot in LAN Finale
SuperGaming, India’s leading game developer, has successfully concluded the Powerplay Phase of the Indus International Tournament (IIT), the country’s premier grassroots-to-global esports showcase for its Indo-Futuristic battle royale, Indus.
The Powerplay Phase witnessed intense competition among professional esports teams from over 100 organizations. Teams battled fiercely on the map of Virlok, delivering high-stakes gameplay, demonstrating exceptional skill and strategic prowess. With ₹25 Lakhs up for grabs in this leg alone, the pressure was high — and performances, unforgettable.
Team Zero Gravity emerged as the champions of the Powerplay Phase, walking away with ₹10 Lakhs in winnings. The squad’s standout performer and Captain [ZG]SGOD – Sandeep Pandey earned the coveted MVP title, racking up 37 kills and 21,747 damage – an impressive stat line. He was awarded ₹1 Lakh for his outstanding performance.
Powerplay Phase Winners Announced:
Following weeks of intense competition, the teams emerging victorious from the Powerplay Phase are:
1. Team Zero Gravity – ₹10,00,000
2. Marcos Gaming – ₹4,00,000
3. Likitha Esports – ₹3,00,000
4. Heatbeast Esports – ₹2,50,000
5. Golden Hornet – ₹1,75,000
6. 4Ever Esports – ₹1,25,000
7. Autobotz Esports – ₹1,00,000
8. Blind Esports – ₹50,000
These 8 teams have now secured their spots in the upcoming Indus International Tournament LAN Finale, competing for the Champions Trophy and a ₹2 Crore prize pool. The LAN event is set for 18th May, 2025 at Drome Arena, Pune.
One Final Shot: The Last Chance Qualifier
For those still dreaming of the LAN stage, SuperGaming has opened The Final Portal. This is a last-chance qualifier offering one additional spot at the LAN Finale. Registrations are open until 16 April, 5:00 PM IST, with matches kicking off on 19 April, 2:00 PM IST.
Interested players can now form their squad, gear up, and register HERE.
Rising Stars. Real Careers.
More than just competition, the Indus International Tournament is becoming a launchpad for a new generation of Indian esports athletes. The tournament structure is designed to nurture grassroots talent and elevate India’s presence in global esports. For many, this is more than a trophy — it’s the start of a real career in competitive gaming.
Roby John, CEO and Co-Founder, SuperGaming, says,
“At SuperGaming, we’re building a gaming and esports ecosystem made in India—for India and the world. With Indus, we’re rethinking the traditional esports playbook by focusing on grassroots tournaments, creator-led events, and co-ownership opportunities that turn players and fans into real stakeholders.
Instead of chasing unsustainable models, we’re building a community-first framework that drives engagement, retention, and monetization—from in-game items to merch and transmedia content. Esports isn’t just a competitive format for us—it’s a storytelling engine where real-world players become heroes as part of the game’s evolving universe.
We believe India has a unique opportunity to lead the next wave of global gaming—and we’re laying the foundation to make that happen.”
Tournament Highlights:
- The Indus International Tournament features four progressive phases: Homegrown, Nationals, Powerplay, and International, designed to reflect India’s diverse player base and competitive ecosystem.
- Homegrown Phase: Showcased rising grassroots talent. Team Rogue, DGE, and Moggers qualified for the LAN Finale.
- The National Phase concluded with Team Esports Battleground and Brazil-based organisation Team 4Magic advancing to the LAN Finale.
- Kadiliman Esports from the Philippines is set to represent international talent at the LAN Final.
- The Most Valuable Player (MVP) of the Indus International Tournament LAN finale will be awarded a custom Mahindra Thar*.
SuperGaming is thrilled with the overwhelming response and the level of competition seen throughout the tournament. With top teams, passionate fans, and leading creators heading to Pune, the Indus International Tournament LAN Finale is set to become one of India’s most defining esports events. This isn’t just a finale — it’s where the country’s next esports champions will rise.
The post Team Zero Gravity Triumphs in Indus International Tournament Powerplay, Secures Spot in LAN Finale appeared first on European Gaming Industry News.
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