Shenzhen-based TiMi Studios, which is also a subsidiary of Tencent Games reportedly generated $10 billion in 2020, according to Reuters in an exclusive report. TiMi is known for developing popular mobile games like Call of Duty Mobile, Honor of Kings, and Arena of Valor. If the sources are to be believed, Tencent’s Timi Studios will become the world’s largest developer after it has generated $10 billion. This will also give a push to Tencent’s ambitions to expand in ‘AAA’ titles on various platforms. The platforms include the likes of PC, PlayStation, Nintendo Switch and Xbox. TiMi Studios is also behind the release of the upcoming mobile game title of Pokémon UNITE. The MOBA game is also expected to do well in the market, receiving a positive response from the community.
Why is Tencent trying to expand in AAA titles?
In 2020, Tencent reported $23.79 billion (156.1 billion yuan) in overall online game revenues. PUBG Mobile developer Lightspeed and Quantum studio contributing 29% to the amount. Looking forward, Tencent has an aim to derive half of its game revenue from overseas. Going through the data available on the internet, the game revenues from overseas were 23% in the fourth quarter of 2019. To achieve this goal, Tencent is also building studios overseas and targeting the US, Japan, Korea and European regions.
AAA titles are video games developed by major publishers with a high budget, for the development and marketing of the game. AAA titles will help Tencent become top-grosser worldwide. As Tencent’s TiMi studios generated $10 billion, it looks possible. It will be interesting to see how other major game developers and publishers respond to Tencent’s growing influence.