Posts Tagged ‘Zynga’

GameLook Today:More overseas social game companies will enter Tencent’s platform

Today’s most important news is Zynga’s cooperation with Tencent. We noticed that Tencent had said Zynga was the first foreign game company entering Tencent’s platform; Zynga would not be the only foreign game company but it would always be the most important one. We can see that in the future more overseas social game companies will enter Tencent’s platform.

Tencent’s VP announced today that their open platform had nearly 80,000 registered developers since it launched a month ago. Currently 40,000 applications are entering the platform and 3 game applications have 10 million users respectively. Tencent’s social platform has 100 million active users and some games have already got revenue of 10 million Yuan.

Though the user base is quite large now, GameLook believes the income is far from reaching the peak. DeNA’s social games had revenue of just $5.6 million 2009Q3, while in 2011Q1 it was $393 million (as shown below). Thus Tencent’s platform will also enjoy a rapid growth stage. Who will be the winner depends on the game’s time of launching and the developer’s relationship with Tencent.

Zynga Launches CityVille in China with Tencent

Tencent is partnering with Zynga, the largest developer of games on Facebook Inc.’s site, and launching a Chinese version of CityVille. The game will first launch in beta on Tencent’s Pengyou platform, and will later launch on its main QZone platform. It will be developed by Zynga’s Beijing-based Zynga China studio, featuring elements inspired by China’s pop and traditional culture. The new game is part of Zynga’s strategy to build a “truly localized offering,” the company said in a statement.

As mobile platform has become very important in global game industry now, GameLook has asked Tencent and Zynga whether they have any specific cooperation plan on mobile scoial games. The two companies did not answer it directly but we believe they do. The biggest question is what the share proportion of game income might be. GameLook makes a guess at fifty fifty, as most Chinese social game companies get less than 50% while Tencent has a larger appetite.

This is the first time for Tencent to bring foreign social game companies to its social network, indicating Tencent’s opening up to the world. GameLook has heard many foreign game companies are negotiating with Tencent and Zynga is the most prominent and important one. Many of them are seeking overseas agency for their games, which come from Facebook, South Korea, Japan and etc. Now the situation for Chinese social game companies is becoming very complicated for they are competing directly with foreign game giants.

The comparison between Zynga and EA

July 5 news. Social gaming giant Zynga has filing an initial public offering (IPO) with the US Securities and Exchange Commission (SEC) .The Company estimates aggregate initial sales of $1 billion in class A common stock.The annual income of Zynga has not reached $1 billion and the annual income of EA has already close to $4 billion. The valuation of Zynga is about $20 billion, but the valuation of EA is just $8 billion. The valuation of Zynga even more than the world’s biggest video – game company Activision Blizzard. The valuation of Activision Blizzard is $13.5 billion.

TOC2011: platform of Tencent is attractive

I think the platform of Tencent is attractive. The platform of Tencent differs from Facebook.Facebook mainly offer users resources , but nothing else.Facebook will not offer help and support to developers .As for Tencent ,it not only have opening up platform but aslo will build a ecological environment, ecological chain to support developers .The Market Positioning between Tencent and Facebook is different.