Mobile gaming presents are huge opportunity for online growth in 2014, and we are seeing some unique players enter the market. One such name is Alibaba Group, an e-commerce group that is known for selling a wide range of consumer products online. This week, Alibaba announced the launch of a new open platform that will allow developers to create games for the mobile gaming marketplace.
To compete with Tencent, Alibaba’s new service will be free of charge to users for the first year. All gaming revenue that is earned by developers that use the new system will be split in the following way: 70% for the developer, 20% for Alibaba and 10% to fund rural education programs. Alibaba is looking to knock Tencent out of its position as the top tech company in China.
Tencent has recently announced plans to work with independent developers to create free mobile games. The move will serve to offer huge expansion for Tencent, and Alibaba wants to intercept. “Alibaba is using a small part of its business to strike a blow at the mobile gaming operations of Tencent, which make up more than two-thirds of income at Tencent,” says iResearch consultant Yan Huawen.
Mobile games are some of the biggest money-makers in the gaming market, so it is no surprise that we are seeing so many new players in the mobile industry. Games like Candy Crush make millions of dollars from in-game purchases and ad revenue. However, trends come and go very quickly in this market, so operators are always looking to launch the next big thing.
This year, we expect to see plenty more new mobile gaming releases from both gambling operators and play-money gaming developers. 2014 will be an exciting time in the mobile marketplace.