Chinese Internet tech giant ByteDance is reportedly preparing to release a couple of new mobile video games to take on its more experienced rival Tencent Holdings. The upcoming games that will be released by the owner of the popular short video app TikTok will be its first foray into the non-casual mobile game segment.
According to reports citing sources close to the matter, ByteDance is planning to release the new games in China and in other overseas markets. The same sources claim that the new games will be massively multiplayer online role-playing games (MMORPG) that will include Chinese fantasy elements. This will include elements from popular local mythologies and stories.
To develop its games, ByteDance hired more than 1,000 software developers to be part of its video games operation. The company also made substantial acquisitions over the years, including the buying out studios such as Pangu Game Global and Shanghai Mokun Digital Technology.
Just like its rival Tencent, ByteDance is hoping to create its own online ecosystem that will incorporate its various platforms. This will effectively allow the company to offer multiple services in its various online platforms. This strategy should allow the company to attract new users from one platform to its other platforms, while at the same time keeping its existing audience.
As of the moment, ByteDance's Douyin app, which is basically the Chinese equivalent of TikTok, already features an online shopping section that shows products from Alibaba Group Holding's Taobao and Tmall online marketplaces.
While ByteDance may be the world's most valuable company, with an estimated market capitalization of more than $78 billion, it will likely still have a hard time competing with Tencent in the mobile video gaming industry. In comparison, Tencent is a behemoth in the sector as it currently is running the world's largest video game business in terms of revenue.
ByteDance will still have to play catch up with Tencent given that its only experience in the sector is its casual game called Music Jumping Ball, which was released via Douyin early last year. ByteDance's chief of strategy and investment, Yan Shou, believes that the company does have what it takes to become competitive in the space given its vast size and its ability to hire the right people for the job.
Analysts tend to agree; with most claiming that ByteDance could become a major player in the mobile video game industry in the next five years. The company has apparently shown that it has foresight in developing products that meet the demand of its users.
