2) Tencent Holdings
$5.9 billion
If you needed any convincing that the mobile game market is fast becoming the most lucrative sector of the gaming industry, Tencent provides a case study. In 2017, the Chinese holdings company recorded its biggest annual jump in revenue for four years. Beyond the incredible popularity of its messenger service, WeChat — which Tencent said has now reached 889 million monthly users worldwide — the publisher is enjoying sensational success in gaming.
Tencent has its roots in PC gaming, finding huge success in the Asian market, publishing titles such as Crossfire and Call of Duty Online, and now it is making waves in mobile. In fact, Tencent recently announced that for the first time, mobile gaming topped PC gaming last quarter.
The company’s most notable acquisition is its majority share in billion dollar game maker Supercell (Clash of Clans, Boom Beach), but it also makes its own games and partners with publishers to distribute titles in China and the rest of the world. App Annie recently ranked it as the top mobile publisher of 2016 based on revenue (Supercell placed second).
Comparing year-on-year records highlights striking revenue gains. In Q4 of last year, Tencent said smartphone games pulled in $1.55 billion in revenue; in Q2 of this year, Tencent reports $2.2 billion revenue from mobile games alone. The mobile market has helped the firm’s profit rise by 70% versus the same period last year.
PC gaming still plays an important role, too. Tencent stated that Honor of Kings reached 50 million daily users last year to become its most popular game to date. The PC division contributed $2 billion of revenue last quarter, and the online games business grossed $3.6 billion, showing Tencent still has a major presence beyond mobile.
