Chinese giant ByteDance, parent company of TikTok, is withdrawing from the video game sector
TikTok's parent company will end its activities in the video game sector: the Chinese giant ByteDance confirmed the news on Monday, November 27, a decision that threatens hundreds of jobs and demonstrates a complete change of strategy.
ByteDance has announced the end of its gaming business. Here, the company's headquarters in Shanghai on July 4, 2023. © Aly Song/Reuters
By: RFI Follow
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China's video game market is by far the largest in the world with 700 million players, $44 billion in annual revenue: it is neck and neck with the United States, one of the most profitable.
ByteDance has long seen it as a way to diversify its business and make TikTok's millions of users profitable. The Chinese giant had spared no expense, buying several studios specializing in mobile games, united under the same umbrella.
Some of ByteDance's biggest hits include "Mobile Legend: Bang Bang" and "Marvel Snap."
In total, the mobile games in its catalog had generated $1 billion in revenue worldwide in 2022: while that may seem like a lot, it's very little compared to Tencent's eight billion and NetEase's four billion, its Chinese rivals.
Above all, it is a negligible sum compared to the 80 billion in revenue generated by TikTok and Douyin its equivalent in China over the same period. At ByteDance, it was decided that it was no longer worth the effort.
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