December 2024 Marked as a Turning Point for Chinese Video Game Developers
Chinese video game developers have made a major breakthrough, thanks to the success of Tencent Holdings’ ‘Path of Exile 2’ and NetEase Inc’s ‘Marvel Rivals’. Bernstein analysts have hailed this moment as a transformative step for Chinese gaming developers, enabling them to challenge Western competitors and expand their presence in the global market.
The release of ‘Path of Exile 2’ and ‘Marvel Rivals’ have garnered significant traction, attracting a large and dedicated fan base. ‘Path of Exile 2’ boasted over a million players during early access, generating revenue through the sale of the game and microtransactions. Similarly, ‘Marvel Rivals’ broke records with 20 million players shortly after launch.
These games are now well-positioned as live-service titles, which can generate revenue for years to come. Chinese developers are advantageous in their approach, enjoying lower research and development costs, innovative intellectual property, and a clearer path due to their ability to avoid contentious cultural debates commonly associated with Western games.
In recognition of these companies’ growing competitive edge, Bernstein maintains an “Outperform” rating for both Tencent and NetEase. This assessment underscores their potential to not only dominate their domestic market but also gain significant ground against global giants such as Blizzard and Electronic Arts in the lucrative live-service gaming sector.