ByteDance, the parent company of TikTok, recently announced that it generated over $1 billion in player spending across all mobile games between June 21st, 2021 and June 20th, 2022. According to Sensor Tower, this represents a 16% increase from the same time last year.
“ByteDance’s deals for Mobile Legends developer Moonton and Girls Chronicle studio C4 have been transformative,” said Craig Chapple, a mobile insights strategist for Sensor Tower, in an email to CNBC. “It’s built up its games operations so quickly that it’s already becoming a significant mobile games publisher, particularly in China and Asia. It has a long way to go to catch up with heavyweights like NetEase and Tencent, of course, but it’s moving in the right direction.”
Most player spending came from games that were recently acquired by ByteDance. Mobile Legends: Bang Bang accounted for 32% ($317.7 million) of the $1 billion in player spending according to Sensor Tower. C4’s Girls Chronicle: Idle Heroine was the second most lucrative mobile game under the ByteDance umbrella.
ByteDance has been aggressive in its attempts to enter the gaming space. Earlier this year, this organization established an internal gaming business unit. Last year, ByteDance acquired two gaming studios Moonton and C4.
“The company has spent the last year growing its operations both in China and internationally. In the face of regulatory challenges in China, we may see ByteDance joining Tencent and NetEase and expanding its operations further internationally, something the company already has huge experience and success in with TikTok,” Chapple said.
The Profit‘s Take:
While we’re on the topic, go follow the Metaverse TV TikTok channel. This headline shocked me, to be honest. We knew that TikTok was toying with video games. However, they moved from toying with gaming to making a billion dollars very fast. Tencent is still about eight times larger than ByteDance from a mobile game spending standpoint though. In the grand scheme of Bytedance’s business, a billion dollars feels like small potatoes, but it’s a strong start!
(All information was provided by CNBC)