StockApps has presented data showing that Chinese gaming giant Tencent earned $32.2B from its gaming investment. That figure is the most revenue that a public company made in the eSports sector. Further, Tencent’s earnings grew by almost 10% in year-on-year terms.
Weighing in on the matter, StockApps’ Edith Reads had this to say:
“Tencent’s video gaming assets were all the rage inside and outside China. For example, the MOBA Honor of Kings was a fan favorite domestically. Similarly, Clash Royale and League of Legends were hits internationally. Meanwhile, Tencent’s major challengers Sony and Nintendo keep up with their 2020 successes owing to supply chain issues.”
Top 10 gaming earners
Sony follows Tencent in the second position with earnings of $18.2B, a 2.2% decline from its 2020 revenues. Sony’s fortunes suffered at the back of an unfavorable business environment. Its insistence on consoles when the sector was grappling with supply chain issues was central to its underwhelming performance.
American firms dominate the list of the top ten earners. Apple ($15.3B) leads some four other companies that account for 42% ($53.8B) of the roughly $126B that the ten earned. Other American companies on the list are Microsoft, Google, Activision, and Electronic Arts.
Asian entities hold the remaining five positions. Besides Tencent, China’s other representative is NetEase ($9.6B). Japan has Sony ($18.2B) and Nintendo ($8.1B), while Singapore’s Sea Limited ($4.3B) wraps up the top 10.
What does the future hold for the gaming industry?
Analysts reckon the video gaming market will surpass the $203B mark in 2022. The Asia Pacific region will take the lead with a 47% share, followed by North America (27%) and Europe (18%).
Another feature that will define the sector is the increased consolidation of ventures. Electronic Arts, for instance, had signaled its intention to sell. Sony is also pursuing a takeover bid of Halo. Meanwhile, Bungie, Destiny 2’s developer, and Embracer Group are keen on acquiring several gaming entities from Square Enix.