Archives

Gaming

Selfie app maker Meitu eyes overseas gaming market with $340 million deal

China’s largest selfie app maker Meitu has been busy working to diversify itself beyond the beauty arena in China. On Wednesday, the Hong Kong-listed company announced in a filing that it has agreed to pay about HK$2.7 billion ($340 million) for a 31 percent stake in game publishing company Dreamscape Horizon.

Dreamscape Horizon, a subsidiary of Hong Kong-listed games group Leyou, specializes in making video games for personal computers and consoles and owns 97 percent of Canada-based studio Digital Extremes. This global connection will potentially hasten Meitu’s overseas expansion and the foray into games, on the other hand, will help the Xiamen-based firm capture more male users. (Operating out of Xiamen might have also been convenient for Meitu to meet the coastal city’s booming hub of game developers.) Out of Meitu’s 110 million monthly active users overseas, only 30 million are male.

“The collaboration with Leyou is not only focused on mainland China but also the global market,” says a Meitu spokesperson in a statement. “Mainland China currently accounts for the majority of Meitu’s earnings. The acquisition will broaden our business scope and diversify the geographic streams of our income.”

The overseas move appears to be a tactful one as the domestic market is crowded with established players like Tencent, NetEase and hundreds of smaller contenders. The local environment has also turned hostile to gaming companies as Beijing steps up scrutiny amid concerns of titles being violent and harmful to young players. The result was a months-long halt in game approvals that dragged down Tencent’s stock prices and prompted a major reshuffle in the giant. And before long Tencent announced it would deepen its ties with Garena to distribute games in Southeast Asia. The hiatus ended in December, but companies are still feeling the chill as China is reportedly mulling a further pause this week.

Meitu is most famous for its suite of photo-editing and beautifying apps, but hardware has been its major income source for years. For the first half of 2018, the company generated 72 percent of its revenues from selling smartphones optimized for taking selfies, a category proven popular in a country where touched-up photos have become the norm. But Meitu’s hardware business is shrinking as smartphone shipment slows in China and phones from mainstream brands like Xiaomi and Huawei now come equipped with filters. It’s, however, found a new home for its barely mainstream smartphone brand after Xiaomi gobbled it up in November to lure more female users.

Study says US Twitch streamers raked in roughly $87 million in 2017

A new study estimates that revenue-earning American Twitch streamers grew to nearly 9,800 in 2017 (a 59 percent increase from 2016) and made an estimated $87.1 million (representing a 30 percent YOY increase).

Twitch is one of the fastest-growing platforms for American content creators. In terms of year over year growth in number of creators themselves, Twitch falls just behind Instagram and YouTube, and ranks second behind Instagram in YOY revenue growth for those creators. (Fun Fact: Instagram’s creator-based revenue growth grew nearly 50 percent from 2016 to 2017 to $460 million, according to the study.)

Recreate Coalition says these numbers are very conservative based on the methodology of the study and the fact that it’s limited to the U.S.

The growth of Twitch is predicated on a few obvious trends, as well as a very nuanced relationship between a streamer and his or her respective audience.

In the case of the former, “live” digital experiences continue to be a fascination for startups and consumers alike. While Twitch and YouTube have offered live broadcasts for a while, social media companies have followed along with their own live-streaming products. In fact, Betaworks dedicated a season of its accelerator program to “live” startups, calling the program LiveCamp.

With regards to the latter, things get more interesting. The relationship between a viewer and a streamer is similar to our relationships with other famous celebrities, artists and athletes, but puts the viewer far closer to the action.

Streamers don’t just pop up briefly in articles, TV interviews or on Twitter or Instagram. They spend hours and hours each day just sitting there, doing whatever it is they do on stream and chatting with their viewers. You can get to know their personality, talk to them and they talk back to you!

It’s a bizarre combination that has proven financially fruitful for these streamers, especially at a time when the gaming industry itself is growing by double-digit percentages YOY for the past two years.

A tier of elite, hyper-popular streamers such as Shroud, DrDisrespect, Dakotaz and of course Ninja are leading the way for others as they continue to gain followers. In fact, Ninja just partnered with Wicked Cool Toys to introduce to the market a line of actual toys. Ninja himself made nearly $10 million in 2018.

But as the gaming world explores new genres and esports grow, there seems to be plenty of room for streamers to make a name (and a pretty penny) for themselves.

Editor’s Note: An earlier version of this post included a few too many zeroes, stating that U.S. Twitch streamers made $87 billion instead of $87 million. It has been corrected for accuracy with my apologies.

Razer is closing its game store after less than a year

Razer is one of the dominant brands in gaming when it comes to buying equipment to play, but one of its biggest efforts to own a larger slice of digital spending hasn’t gone according to plan. After less than a year, the company announced it will close its digital game store at the end of this month “as part of realignment plans.”

The Razer Game Store launched worldwide in April 2018 with the aim of taking a slice of a game sales business that is dominated by Steam. Razer’s offering tied into its gamer credit (virtual currency) strategy to incentivize its customers to buy hardware and digital content with the promise of discounts. The company didn’t comment on why the store is closing, but you’d imagine that it didn’t go as well as Razer had hoped.

It sure takes a lot to bite into digital game sales, but the rewards are potentially lucrative.

Steam made $4.7 billion in 2017 (we don’t yet know its total for 2018) and Epic Games, buoyed by the runaway success of Fortnite, banked a $3 billion profit last year across its entire business, sources previously told TechCrunch.

Amazon-owned Twitch — which dominates the live-streaming space — had its own store before it closed, while Epic launched a very competitive offering at the end of 2018. The Epic Games Store, though, is fairly sparsely populated at this point. It is a long-term project, but the fact that even a company of the size and influence of Epic needs time goes to show the struggle that any new entrant will face.

The Razer Game Store will close on February 28

The Razer Game Store will close its doors at 1am PST February 28. All purchased games will continue to work and pre-ordered titles will ship as planned, according to Razer. Discount vouchers must be used before that date, however.

In a Q&A accompanying the announcement, Razer said it would “continue bringing games to gamers via other services.”

“We will be investing in other ways to deliver great content and introduce game promotions through Razer Gold, our virtual credits system,” the company said, perhaps hinting at tie-ins with other game stores in the future.

Razer went public with an IPO in Hong Kong in 2017.

Note: The original version of this post has been updated to correct that Twitch’s store has in fact already closed, such is the challenge of rivaling Steam. Thank you to reader James Binns for spotting the error and writing in.