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Alibaba strikes at Tencent by offering mobile gaming developers free cloud computing
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ALIBABA Group said today it will launch an open platform for developers to use its cloud computing system as the e-commerce giant plans to take on rival Tencent's dominant position in the mobile gaming platform.
The company will introduce a new revenue sharing mechanism with game developers and aims to build "a healthy industry environment."
"Alibaba will offer cloud computing services for single-player game developers for free and will take 20 percent from the revenue of multi-player gaming," said Liu Chunning, head of Alibaba's digital entertainment business unit, speaking today at the 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 users don't need to register a new account for each new game.
The move in the mobile gaming sector came as Alibaba has made a series of investments in the mobile Internet sector since last year. They include Sina's microblogging site Weibo, mapping service AutoNavi and mobile browser UC Web.
Last year, China's online gaming market value rose 32.9 percent from a year ago to 89.2 billion yuan (US$14.7 billion), as mobile gaming boosted income for developers and platform operators, according to a report by Internet consultancy iResearch Inc.
Tencent remains the dominant player in mobile gaming.
"Alibaba is using a smart business maneuver to strike a blow at the mobile gaming operations of Tencent, which makes up more than two-thirds of income at Tencent,” said iResearch analyst Yan Huawen. “It'll take some time to see the actual results."
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