TENCENT(HK:00700) Xin Lang Cai Jing·2026-01-28 09:27Core Insights - Tencent's gaming business has shown remarkable performance, with CEO Ma Huateng describing it as "terrifyingly strong" and highlighting the Interactive Entertainment Group's (IEG) growth in both domestic and international markets [1] - The gaming sector outperformed the global market, achieving a 23% growth compared to the overall market's 3% increase, driven by several long-standing successful titles [1][2] - The international market contributed 30% of Tencent's gaming revenue, exceeding $10 billion for the year, with significant growth in user engagement for games like "Path of Exile 2" and "PUBGM" [2] Tencent's Gaming Performance - Tencent's gaming revenue surpassed $10 billion, with a 23% year-on-year growth, significantly outpacing the global gaming market [2] - Key titles contributing to this growth include "Honor of Kings," "Peacekeeper Elite," and "League of Legends," among others [1] - The concept of "evergreen" games is gaining recognition in the industry, moving away from the traditional model of constantly developing new games [1] Industry Trends - The Chinese gaming market's actual sales revenue reached 350.79 billion yuan in 2025, marking a 7.68% increase year-on-year, with the user base exceeding 683 million [4] - Self-developed games generated 291.09 billion yuan in domestic sales, an 11.64% increase, while overseas sales reached $20.455 billion, growing by 10.23% [4] Youth Protection Initiatives - Concerns regarding the protection of minors in gaming have been raised, particularly for large companies like Tencent with vast user bases [5] - Tencent has implemented various measures since 2017 to promote healthy online habits among minors, including the launch of the Tencent Growth Guardian system [5] - A report indicated that 71% of minors are limited to three hours of gaming per week, maintaining a consistent rate above 70% for four consecutive years [5][6]