Red Arrow - Myth Creation Studio

Weekly Game Media Report

3/1- 7/1 2022

2022-01-10

[Important – Financial]

Tencent said it will sell over US$3 billion worth of its stock in Southeast Asian tech giant Sea Group, dragging the Chinese internet company’s shares to end nearly 13% lower on Tuesday
Tencent’s equity interest in Sea will fall from 21.3% to 18.7% , and said it will keep the “substantial majority” of its equity in Sea “for the long term” and not sell any more shares for the next six months
Sea Group has also announced its plans to increase the voting power rights of CEO Forrest Li to 57% from the current 54%. At the same time, it will reduce the voting power rights of investor Tencent to less than 10%
Sea has scaled significantly to become a leading global consumer internet company, it is in the best interests of the company in pursuing its long-term growth strategies to further clarify its capital structure through the contemplated changes outlined above

PlayPark, one of the leading online game publishers in Southeast Asia under Asiasoft Corporation Publick Company Limited, welcomes the brand new year with a logo revamped touting the concept of Play plus Infinite FUN
PlayPark now has a brand new mission: ushering the company to embrace the Play To Earn era, with new game roadmaps for both PC and mobile games this year
Right now, the company is preparing for blockchain technology and NFT to games to truly meet the lifestyles of the new generation of gamers

PSVR 2 will have new controllers dubbed PSVR 2 Sense Controllers. It will have new sensory features, enhanced controls and tracking, and greater visual fidelity
PSVR 2 will have foveated rendering and 4K visuals that will make you feel the game in a more “visceral way”
Sony showed off a new game, Horizon: Call of the Mountains from Firesprite Games and Guerrilla Games. That game is being made from the ground up for VR
Trailer

MI Team’s thoughts: More and more Chinese gaming companies will put more resources & seek more opportunities in oversea markets like Southeast of Asia, meaning more competitions & opportunities for VNG
Regulators have not released a list of approved new video game titles since the end of July, marking the longest suspension since a nine-month hiatus in 2018
As a result, about 14,000 small studios and gaming-related firms in China went out of business over the past several months
Larger firms such as TikTok owner ByteDance, online search giant Baidu and Tanwan Games trimmed their losses by laying off a number of employees involved in the video gaming segment of their operations; Tencent Holdings and NetEase are putting more resources in overseas markets
The total number of game licenses is 755 in 2021, a decrease of 46.26% YoY
Many waifu games also urgently modify the character image & names, games include Genshin Impact, Honor of kings, F/GO, LoL
The game licenses has entered a state of suspension, but the supervision on games has been strengthened

In 2021, there is a total of 209 investments in the game industry in China, with a total amount of approximately RMB 25.88 billion(US$4 billion). In the past two years, investment activity in the game market has increased significantly
TOP10

Top 10 companies accounted for more than 60% of the total market investment
Tencent accounted for 44% of the entire game market, and accounted for nearly 80% of the disclosed investment amount
From 2016-2021, Top 10 investment events generated more than ￥60 billion(US$9.4 billion)
Among them, the number of investment events that Tencent participated in accounted for 60%
From December 2020 to August 2021, the sum of the market value of the TOP10 game companies in the China market has changed, falling by more than ￥700 billion(US$110 billion)

Nearly half of the invested companies have been established for less than three years; The proportion of equity acquired by investors in the past two years is mostly concentrated in 10%-30%
In 2021, Tencent invested in about 92 domestic and foreign game companies. On average, Tencent invested more than 7 game every month
Between 2020 and 2021, Tencent has invested in more than 20 companies related to the waifu products; Waifu element is what the top game companies focus on right now
BIlibili invested in 21 gaming companies in china in 2021
Three popular investment areas: waifu games, metaverse and VR companies

PlayPark, one of the leading online game publishers in Southeast Asia under Asiasoft Corporation Publick Company Limited, welcomes the brand new year with a logo revamped touting the concept of Play plus Infinite FUN
PlayPark now has a brand new mission: ushering the company to embrace the Play To Earn era, with new game roadmaps for both PC and mobile games this year
Right now, the company is preparing for blockchain technology and NFT to games to truly meet the lifestyles of the new generation of gamers

In New Year's Letter, the exec commented on the biggest trends of 2021, including the metaverse and NFTs
He claimed that traditional gaming offers "no explicit incentive" for anyone who wants to play to contribute, exists only for self-expression and has not produced "major game-changing content" so far
Token economies will provide those incentives and therefore motivation, which will lead more people to devote themselves to contributing to a game economy
Building NFT titles will be a major strategic theme for the company in 2022

It seems like TiMi Studios and EA are now working on a new online open-world mobile game in the Need for Speed franchise, codenamed Need For Speed Online Mobile, that will be designed in Unreal Engine 4
Tencent has began hiring employees for the new Need for Speed mobile game

Apple became the first company to reach a stock market value of $3 trillion, before closing the day at US$2.99 trillion
Since 2018, the firm has decreased its reliance on iPhone sales revenue from over 60% to 52% in the 2021 fiscal year