Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Investing.com– Bernstein analysts hailed December 2024 as a turning point for Chinese video game developers, highlighting the global success of Tencent Holdings (OTC:) Ltd’s (HK:) ‘Path of Exile 2’ and NetEase Inc’s (HK:) ‘Awesome Teams’.
The games represent a major step in China’s progress to capture a larger share of the $165 billion global sports market than the $45 billion domestic sector, analysts said.
Tencent’s ‘Path of Exile 2’ has emerged as a notable opponent to Blizzard’s ‘Diablo II’, boasting polished gameplay and a dedicated player base. Early access alone saw more than a million players spend $30–$60, a testament to its strong appeal, according to analysts at Bernstein.
Meanwhile, NetEase (NASDAQ:)’s ‘Marvel Rivals’ broke records, attracting 20 million players shortly after launch. This success marks a strategic pivot for NetEase, which has now targeted users comparable to the 40 million reached by its earlier hit, ‘Naraka Bladepoint’.
Both titles have great performance on platforms such as Steam, with peak concurrent users reaching 579,000 for ‘Path of Exile 2’ and 481,000 for ‘Marvel Rivals’ . Bernstein analysts emphasize that these games are well positioned as live service titles, capable of generating revenue for years to come.
The success of this launch also highlights the strategic advantages of Chinese manufacturers, which are cost-effective R&D, new technology assets, and freedom from the traditional arguments of Western sports.
Bernstein maintains “Outperform” ratings on Tencent and NetEase, citing their ability to challenge Western competitors such as Blizzard and Electronic Arts Inc (NASDAQ: ) in the lucrative gaming space.
