Tencent, a Chinese gaming giant, has reportedly shifted its mobile marketing strategy away from Arena of Valor, a Westernized version of their popular MOBA Honor of Kings. The move comes as the game continues to struggle in overseas markets.
A Changing Strategy
In an interview with Bloomberg, Vincent Gao, Overseas Marketing Director at TiMi Studio Group (a subsidiary of Tencent), revealed that the company has never had a dedicated team stationed in Europe and is instead focusing on expanding its unit in North America. This move marks a significant departure from the company's previous efforts to grow Arena of Valor in the West.
A Struggling Game
Arena of Valor, released in 2017, has faced numerous challenges in gaining traction in overseas markets. According to Sensor Tower data cited by Mintegral's Jeff Sue, the game generated only $3 million in its first year, a figure that Honor of Kings achieves daily. The game currently boasts around 100,000 daily active users in Europe and 150,000 in North America.
Missteps and Rifts
Arena of Valor's struggles can be attributed to missteps in development and marketing strategy, as well as a rift with League of Legends developer Riot Games. The tension between the two companies escalated when Tencent used notable League players to promote Arena of Valor and its esports tournaments, prompting a two-month freeze in marketing for the game.
A Shift in Focus
Tencent is now turning its attention to more Western-developed independent games, as seen in their acquisition of Swedish studio Sharkmob. Additionally, the company is investing in its WeGame X platform on PC, which is currently in testing phase. This shift marks a significant adjustment in Tencent's mobile marketing strategy.
Conclusion
As Arena of Valor continues to struggle, it seems that Tencent is abandoning its efforts to grow the game in overseas markets. With the company shifting its focus towards other projects and platforms, it will be interesting to see how this move affects their overall mobile marketing strategy.