Investing.com– Bernstein analysts hailed December 2024 as a transformational moment for China’s video game developers, citing the global successes of Tencent Holdings (OTC:) Ltd (HK:) ‘Path of Exile 2’ and NetEase Inc (HK:) ‘Marvel Rivals ‘.
The games represent a major step forward in China’s push to capture a larger share of the $165 billion global gaming market outside of the $45 billion domestic sector, analysts said in a note.
Tencent’s ‘Path of Exile 2’ has emerged as a significant rival to Blizzard’s ‘Diablo II’, boasting polished gameplay and a dedicated fan base. In early access alone, more than a million players spent $30-$60, a testament to its strong appeal, according to Bernstein analysts.
Meanwhile, NetEase’s (NASDAQ: ) ‘Marvel Rivals’ broke records, attracting 20 million players shortly after launch. This success signals a strategic shift for NetEase, which is now targeting a user base comparable to the 40 million achieved by its earlier hit, ‘Naraka Bladepoint’.
Both titles have gained significant popularity on platforms such as Steam, with the highest number of concurrent users reaching 579,000 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 highlights Chinese developers’ strategic strengths of cost-effective R&D, innovative intellectual property, and freedom from the contentious cultural debates of Western gaming.
Bernstein maintains “Outperform” ratings on Tencent and NetEase, citing their ability to challenge Western rivals such as Blizzard and Electronic Arts Inc (NASDAQ: ) in the lucrative live gaming space.
