It seems Alibaba wants to explore every lucrative tech segment. After investing big money in payments-related tech, the company has now made a huge investment worth 1 billion yuan ($145 million) in mobile gaming distribution.
Alibaba to take Chinese gaming to global level
According to CNBC, Jack Ma wants the Hangzhou-based company to give global exposure to games developed in China. Several other companies supporting Alibaba in this endeavor are TFJoy, Mail.Ru Group, ONEMT and Efun. Together, they have formed a “Global Strategic Alliance of Game Distribution.”
Xiaopeng HE, President of Alibaba’s Mobile Business Group, said: “To maximize the value of Game Intellectual Property, Alibaba Digital Media & Entertainment Group will integrate the resources from UCWeb, Youku, Alibaba Pictures, Alibaba Literature to build a circulation chain for the IP derivatives. UCWeb with its massive traffic entry globally will play a significant role in the distribution of Alibaba Games.”
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To keep the traffic distribution upgraded at all times, Alibaba Games integrates the traffic on two of the most popular platforms – iOS and Android. To ensure accurate distribution and a precise recommendation system for individual users, the company is putting big data technology into use.
Focus on developing markets
Though mobile gaming is a tough market, since profits are huge, competitors such as Netease, Xiaomi and Tencent are also making efforts to get a bigger share of the market, notes CNBC. PricewaterhouseCoopers expect the overall video game industry to be worth $12 billion by 2020, with China being the largest market for online gaming.
Along with developed markets, the Chinese firm will also target developing markets like India and Indonesia. The Indian mobile Internet population touched 370 million in 2016, and by the end of 2017, it is expected to hit 500 million. In Indonesia, the mobile Internet population reached 100 million in February.
In both markets, the company has already developed a robust content and game distribution network. Alibaba’s app distribution platform 9Apps is among the top third-party app stores in India and Indonesia.
Taking local games to the global audience won’t be easy. There are several obstacles, of which the most important is government regulations that restrict media and information. Another big challenge will be to overcome cultural and linguistic differences.
On Thursday, Apple shares closed up 1.94% at $105.63. Year to date, the stock is up more than 20%, while in the last year, it is up almost 43%.