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ByteDance Readying Assault on Tencent’s Mobile Gaming Kingdom

By Bloomberg / Jan 20, 2020 10:52 AM / Business & Tech

ByteDance is preparing a major push into the mobile arena’s most lucrative market, a realm Tencent Holdings has dominated for over a decade: games.

The world’s most valuable startup has rapidly built a full-fledged gaming division to spearhead its maiden foray into hardcore or non-casual games, according to people familiar with the matter. Over the past few months, ByteDance has quietly bought up gaming studios and exclusive title distribution rights. It’s embarked on a hiring spree and poached top talent from rivals, building a team of more than 1,000. Its first two games from the venture will be released this spring, targeting both local and overseas players, one person said.

Gaming in China has long been a Tencent fortress, with Netease a distant second. But ByteDance might be the one company capable of upsetting that status quo, having already defied convention by surviving and flourishing outside the orbit of Alibaba Group Holding and Tencent, who between them have locked up much of the country’s internet sphere. Toutiao is a key channel for Chinese game publishers to acquire new users, with 63 of the top 100 ad spenders among mobile games in 2019 devoting most of their ads to the news app, according to data tracked by Guangzhou-based researcher App Growing.

Representatives for ByteDance, Tencent and Netease declined to comment for this story.

Related: ByteDance Integrates Lesser-Known Short Video Platform Douyin
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