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Since Korean game developers have a high level of dependence on Chinese gaming giant Tencent in terms of the distribution in the Chinese market, there is controversy over its “power trip.” Therefore, Korean companies are recently trying to work with other Chinese emerging game companies, such as NetEase Games and LongTu Game, as alternatives to Tencent.
According to industry sources on Oct. 20, many domestic game companies are giving positive consideration to partnering up with other Chinese game developers than Tencent as local distributors this year.
After watching Tencent’s “power trip” that thwarts domestic games entering the Chinese market, Korean game developers have started making use of NetEase and LongTu as a “pick-off throw,” industry watchers say.
Until now, Tencent has been abusing its prominent position as an exclusive distributor in China. After purchasing domestic games, the company has been thrusting strict conditions and terminating service contracts by reasons of failure to meet internal standards.
Having no domestic game companies that can equally compete with Tencent, Korean game companies have decided to increase their options as much as possible. Currently, they are paying attention to NetEase and LongTu, which opened Korean branches last year and this year, as the alternatives.
NetEase is expanding the mobile gaming business with “Fantasy Westward Journey,” a mobile game listed among the world’s “top 10 bestseller apps” for three months in a row, and “Tom and Jerry,” which reached the number 1 chart position in the App Store free games list, rapidly going after Tencent.
In fact, many domestic game developers have chosen them as a local distributor or development partner this year. Other than Tencent, which has been in charge of providing the “CrossFire” service in China from 2008, its developer has picked another Chinese game company as its partner for the mobile version. Tencent will develop CorssFire’s mobile first person shooter game version, while LongTu Korea will make the third person shooter game version.