Tencent’s marquee game generates over RM650mil in first week

Tencent Holdings Ltd’s blockbuster release Dungeon & Fighter Mobile is estimated to have generated over US$140mil (RM658.34mil) in player spending in its first week in China, one of the most lucrative debuts in the world’s biggest games market.

Since its release on May 21, DnF Mobile has grossed US$63mil (RM296.25mil) on Apple Inc’s App Store in China, according to market intelligence firm Sensor Tower. That would translate into more than US$140mil (RM658.34mil) in player spending across all mobile platforms including Android stores, gaming researcher Niko Partners estimated.

DnF Mobile, based on developer Nexon Co’s long-running franchise, has topped the download and grossing charts over the past week, with 2.6 million downloads on iPhones in China, Sensor Tower data showed. In a sign of its overwhelming popularity, Tencent had to suspend the game within an hour of its launch, citing unspecified server glitches.

The game’s arrival in China, delayed by several years by a Beijing crackdown on the Internet industry that included a halt to game approvals, is welcome news for a company in search of its next big profit driver. DnF Mobile pushed perennial Tencent hits Honor Of Kings and Peacekeeper Elite down from the top spots, giving the Shenzhen-based company the top three most profitable games in the country last week.

Now investor interest turns to how well Tencent is able to sustain the initial popularity of its newest action role-playing game. The company did everything possible to ensure a fast launch, including inserting animated ads for the game’s release into WeChat conversations that included mentions of its title or even words like “warrior”.

DnF Mobile’s stellar debut could translate into more than US$1bil (RM4.70bil) in sales for Tencent this year – or roughly 5% of its domestic games sales – should the momentum be sustained, according to estimates by Niko Partners analyst Xiaofeng Zeng.

“Top-notch franchises like DnF have proved their longevity and money-making power,” Zeng said. “That said, it’s still too soon to tell whether DnF Mobile will be the next Honor Of Kings for Tencent. The first-week revenue is in line with our expectation, but that’s the result of aggressive marketing campaigns.”

By comparison, 2020 hit Genshin Impact – from Chinese anime specialist Mihoyo – generated about US$60mil (RM282.14mil) in its first-week revenue globally, Sensor Tower estimated. The data excluded third-party Android stores in China.

New game releases in China were hamstrung by a prolonged pause in license approvals, and Tencent plans to ramp up launches as the year goes along. The company on Tuesday highlighted over a dozen upcoming debuts at its annual games event, including the highly anticipated console title Black Myth: Wukong. – Bloomberg