3 6 Ke·2024-03-31 00:45Core Insights - Tencent's gaming division is facing challenges with stagnant growth in the domestic market while experiencing growth in international markets [1][4] - The domestic gaming revenue for Tencent in 2023 was 1,267 billion yuan, with only a 2% year-on-year increase, and a decline of 3% in Q4 [1] - International gaming revenue grew by 14% to 532 billion yuan, accounting for 30% of Tencent's total revenue for the first time [1][4] Domestic Market Challenges - Tencent's gaming sector is experiencing a "mid-life crisis" characterized by a lack of innovation and blockbuster games [1][3] - Despite launching 18 new games in 2023, none achieved blockbuster status, with the competition from NetEase's "Egg Party" highlighting Tencent's struggles [1][2] - Key products like "Honor of Kings" and "Peacekeeper Elite" are entering a "semi-decline" phase, with revenue growth slowing since Q2 2022 [3] International Market Opportunities - Tencent has invested in over ten overseas gaming companies, including Riot Games and Ubisoft, to strengthen its international presence [5] - The overseas gaming market is becoming a new growth engine for Tencent, although the overall global gaming market is facing challenges [4][6] - Tencent's strategy relies on acquiring popular game IPs and providing marketing support, but competition remains fierce [4][6] Future Outlook - Tencent plans to release several major titles in 2024, including "Star of Dawn" and "Delta Action," amidst a more favorable regulatory environment for game approvals [6] - The company still holds a strong position in the domestic gaming industry, but the competitive landscape is becoming increasingly challenging [3][6]