Tech giants rush for piece of China’s burgeoning mobile esports market

Arena of Valor university tournament in Beijing. Photo credit Tencent.

China is a country of gamers: it’s the world’s largest gaming market by revenue. And as China’s smartphone population continues to grow – it’s about double the size of the US populace – mobile esports, a nascent but fast-rising segment of competitive gaming, will be an important growth driver.

“In Asia and China, the mobile phone is especially important in people’s everyday lives, even more so than in the West,” Jurre Pannekeet, market research firm Newzoo’s head of esports, tells Tech in Asia.

That, combined with increasingly sophisticated smartphones and competitive mobile games, such as Tencent’s smash hit Arena of Valor, “sets up the stage for mobile esports to become huge [in Asia],” he explains.

In Asia and China, the mobile phone is especially important in people’s everyday lives, even more so than in the West.

The esports market, which includes popular PC games like League of Legends, is thriving in China. According to Newzoo, China is the second-biggest market after North America for esports revenue, accounting for 16 percent of the global total in 2017 or US$105.6 million. Industry analysts estimate that there are already 125 million to 200 million esports fans in the country.

Mobile esports could bolster China’s esports market further by drawing in more gamers and fans, thanks to its broad appeal and low barrier to entry. The last few years have seen the rise of competitive mobile titles that could become esports mainstays – not only in China, but also in other mobile-first regions like Southeast Asia, where multiplayer games like Arena of Valor (previously known as Honor of Kings) and Mobile Legends are already seeing traction.

Image credit: Newzoo

Mobile versions of PlayerUnknown’s Battleground (PUBG), a Hunger Games-like title by South Korean publisher Bluehole, have also skyrocketed in popularity. The survival game, where players run around on an island scrounging for weapons and killing each other, has seen so much traction that Tencent, NetEase, and Xiaomi launched their own versions last year.

None of China’s tech biggies want to be left behind, whether it’s organizing their own tournaments and professional leagues or cultivating livestreamers – another money-making opportunity.

“PC esports traditionally focus on hardcore gamers, whereas mobile esports has found success across both hardcore, midcore, and casual games,” observes Lisa Hanson, managing director at consulting firm Niko Partners. “For gamers who do not have a PC at home, mobile esports are even more important.”

Starting young

Jian Xian, who plays Arena of Valor and Tencent’s mobile version of PUBG, is one of the top live streamers on Chushou / Photo credit: Chushou

Baby steps