Alibaba moves to strike back at Tencent
Print Edition
Competition in the mobile gaming market is set to heat up after Alibaba Group said yesterday that it will launch an open platform for developers to use its cloud computing system as the e-commerce giant takes aim at Tencent’s dominant position.
Alibaba will introduce a new revenue-sharing mechanism with game developers and aims to build “a healthy industry environment.”
“Alibaba will offer cloud computing service for single-player game developers for free and will take 20 percent from the revenue of multi-player gaming,” Liu Chunning, head of Alibaba’s digital entertainment business unit, said at China Mobile Game Industry Annual Summit in Hangzhou.
It will also allow game developers to connect with Alibaba’s payment service and account system so that game players don’t need to register a new account for each new game.
“Alibaba is using a small part of its business to strike a blow at the mobile gaming operations of Tencent, which make up more than two-thirds of income at Tencent, so it’s more like a slogan and it’ll take some time to see the real results,” said Yan Huawen, analyst at Internet consultant iResearch.
Alibaba’s move in the mobile gaming sector came after it invested in Sina’s microblogging site Weibo, mapping service AutoNavi and mobile browser UC Web.
Last year, China’s online gaming market grew 32.9 percent from a year ago to 89.2 billion yuan (US$14.7 billion), with mobile gaming the largest growing sector and making up about 17 percent of overall revenue, said an iResearch report.
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