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Chinese Gaming Giants Boost Global Market Expansion Amid Domestic Challenges
2025-05-08

Recent developments indicate a strategic shift among China's leading video game developers as they increasingly focus on international markets. According to an analysis by Zhang Shule from CBJ Think Tank, companies are placing greater emphasis on exporting high-quality games abroad due to sluggish domestic growth. This approach has proven fruitful for industry giants such as Tencent and NetEase, which have long been pioneers in expanding the global footprint of Chinese gaming.

Tencent, currently the world’s largest gaming company by revenue, reported significant financial achievements in 2024. The company experienced an impressive 68% profit increase year-on-year, reaching 194 billion yuan. A major contributor to this success was the 9% rise in revenue from international gaming operations, amounting to 58 billion yuan. One standout title driving this performance was PUBG Mobile, which ranked second in overseas earnings for Chinese developers, according to Sensor Tower data. Meanwhile, Hangzhou-based NetEase also achieved modest growth, with its gaming revenue increasing by 2.5% to 83.6 billion yuan, although specific details about its international segment remain undisclosed.

As these companies continue to prioritize overseas expansion, their stock performances reflect investor confidence in their strategies. On Thursday, Tencent's shares rose 1.67% to close at HK$498, while NetEase slightly declined by 0.12%, closing at HK$165.90. These trends underscore the importance of diversifying revenue streams beyond the domestic market, showcasing how innovation and adaptability can drive sustainable growth even in challenging environments. By embracing new opportunities abroad, China's gaming sector demonstrates resilience and a commitment to fostering global connections through digital entertainment.

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