Research Summary
The report discusses the launch of licensed basketball games by China’s top mobile publishers, Tencent and NetEase. It explores the games’ performance, their global expansion strategies, and the evolving sports licensing landscape. The report also highlights the growing popularity of basketball in China and globally, and how this influences the gaming market. Additionally, it provides updates on various gaming companies and their recent activities.
Key Takeaways
Launch and Performance of Tencent and NetEase’s Basketball Games
- Game Launches: Tencent and NetEase have launched licensed basketball games, NBA Infinite and Dunk City Dynasty respectively. NBA Infinite entered global scaling in February 2023, while Dunk City Dynasty is preparing for a global launch.
- Game Performance: Dunk City Dynasty has achieved half a million cumulative downloads and around 12K daily active users during its soft launch. NBA Infinite’s daily global revenue is outperformed by Tencent’s earlier domestic product, Super NBA.
Global Expansion and Genre Diversification Strategies
- Global Expansion: Both Tencent and NetEase are focusing on global expansion due to domestic regulations limiting playtime and spend. Tencent’s NBA Infinite targets a broad range of global markets, while NetEase’s Dunk City Dynasty is showing a growing presence on social channels.
- Genre Diversification: Tencent and NetEase are diversifying their game genres due to challenges in exporting MOBAs and RPGs to foreign markets. They are shifting towards new genres such as UGC party platformers and racing sims.
Popularity of Basketball in China and Globally
- Domestic Popularity: Basketball is the most popular sport in China, with 24% of Chinese adults identifying as avid NBA fans. This presents a significant domestic opportunity for NBA Infinite and Dunk City Dynasty.
- Global Appeal: The global appeal of basketball offers Tencent and NetEase a chance to expand their publishing businesses abroad by leveraging the NBA’s globally recognized IP.
Evolving Sports Licensing Landscape
- Licensing Strategies: NBA Infinite uses an official NBA license, while Dunk City Dynasty has licensed individual basketball players directly from the National Basketball Players Association (NBPA). This highlights the fragmentation of sports IP holders.
- Future of Sports Licensing: The future of sports licensing is evolving into a diversified marketplace with a larger pool of licensors, including leagues, college sports, women’s sports, players’ unions, teams, and individual athletes.
Updates on Various Gaming Companies
- Company Updates: The report provides updates on various gaming companies, including VaultN, PlanetPlay, Sharp Alpha, Subscrible, Steel City Interactive, Ubisoft, Nexon, Lego, Epic Games, Microsoft, Crucible, Ukie, and Immutable.
- Funding and Launches: VaultN has secured $1.6 million in seed funding, Subscrible has raised $300,000, and Steel City Interactive has garnered £15 million in funding. Tencent’s Honor of Kings is set for a global launch on June 20th.
Actionable Insights
- Monitor the Performance of Tencent and NetEase’s Basketball Games: As these games expand globally, it will be crucial to track their performance and user engagement to understand their impact on the global gaming market.
- Understand the Evolving Sports Licensing Landscape: The fragmentation of sports IP holders and the diversification of licensors present new opportunities for game developers. Understanding these changes can help in strategizing game development and licensing agreements.
- Consider the Popularity of Basketball in Game Development: The growing popularity of basketball in China and globally can be leveraged in game development to attract a larger audience.
- Stay Updated on Company Activities: Keeping track of the activities of various gaming companies can provide insights into industry trends and potential opportunities.
