Investing.com — Bernstein analysts hailed December 2024 as a turning point for Chinese video game developers, highlighting the global successes of Tencent Holdings (OTC:) Ltd's (HK:) “Path of Exile 2” and NetEase Inc (HK:) ) “Marvel's Rivals”.
Analysts said in a note that these games represent a major step forward in China's efforts to capture a larger share of the global gaming market worth $165 billion, beyond its domestic sector of $45 billion.
Tencent's “Path of Exile 2” has emerged as a noteworthy competitor to Blizzard's “Diablo II,” boasting polished gameplay and a dedicated fanbase. Early access alone has seen more than a million players spend between $30 and $60, demonstrating its strong appeal, according to Bernstein analysts.
Meanwhile, NetEase's (NASDAQ:) game Marvel Rivals broke records, attracting 20 million players shortly after its launch. This success signals a strategic pivot for NetEase, which is now targeting a user base similar to the 40 million user base achieved by its previous success, “Naraka Bladepoint.”
Both games have gained significant traction on platforms like Steam, with 579,000 concurrent users for Path of Exile 2 and 481,000 for Marvel Rivals. Analysts at Bernstein stress that these games are well-positioned as live-service titles, capable of generating revenue for years to come.
The success of these launches also underscores Chinese developers' strategic advantages of cost-effective R&D, innovative intellectual property, and freedom from contentious cultural debates in Western games.
Bernstein maintains “outperform” ratings on Tencent and NetEase, citing its ability to challenge Western rivals such as Blizzard and NetEase. Electronic Arts Company (NASDAQ:) in the lucrative live-service gaming space.
