24 June 2019

Tencent makes easy money with simple hit

Despite all the hype about Tencent Holdings Ltd.’s (00700.HK) WeChat, China’s most popular instant messaging platform, a new simple big hit indicates that online games will remain the core earner for the tech giant — even in the mobile era.

Tian Tian Ku Pao, or Cool Running Everyday, is an incredibly popular and easy-to-use online game in Tencent’s growing stable of mobile entertainment. Players have to collect coins to outrun their competition over an obstacle course. It’s all designed to help people kill time and has proved a winning formula, racking up more than 100 million yuan (US$16.41 million) in revenue in just 12 days.

Better still, Timi Studio, which developed the game for Tencent, has just 10 core staff members, reported, suggesting that returns on the product should be handsome.

According to portal website PCgames, the 100 million yuan-plus turnover is split three ways: 30 percent goes to the app stores and 70 percent is shared by Timi and WeChat or QQ, another Tencent chat unit, if users play in groups via the services.

Since players can choose to play with their friends on the go, Cool Running Everyday has the added benefit of helping Tencent’s social networking arms grow.

The success of Cool Running Everyday has prompted a U-turn in creative thinking at Tencent’s other developer studios. Some complex games have reportedly been axed midway and developers are putting more emphasis on simpler mobile diversions with shorter and less-expensive development cycles.

– Contact the writer at [email protected] 




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