![]() This may be limited to China, but as app stores receive more regulatory scrutiny worldwide, similar dynamics may eventually gain traction elsewhere (or even in new forms like cloud gaming via browsers or instant games). In other words, the combination of video platform and games platform could grow more competitive - YouTube + Google Play, Bilibili + TapTap, TikTok + new Bytedance platform - and might ultimately make 0% revenue share the norm. The obvious name missing is Bytedance therefore, it wouldn’t be surprising to see Bytedance launch a self-developed gaming hub to counter TapTap with TikTok as its primary means of driving user acquisition. Tencent increased its position to 18% in 2020, Alibaba took a 10.8% stake back in 2019, and Sony bought in at $400M for 4.98% in 2020. Things get more interesting when you look at who owns a stake in Bilibili. It will fascinating to see how others follow suit. This powerful combo is already proven - miHoYo launched Genshin Impact in China primarily through a collaboration between Bilibili and TapTap, skipping the traditional Android app stores. XD’s Interim Report 2020 shows that TapTap’s advertising revenue sits at $38M, a 20% increase from the previous year.īack to X.D Networks’ investors: Bilibili’s investment signals a closer collaboration between China’s most popular long-form video network and China’s most popular gamer hub. Devs can now direct their Android user acquisition efforts towards TapTap, which creates a win-win-win situation: TapTap gets more users, the players get an amazing gamer hub, and devs don’t pay any store fees. ![]() ![]() While TapTap is available on both Android and iOS, only the Android version allows players to download games directly (the iOS version serves only as the community hub). While X.D Network has many successes as a game developer, its mobile game platform TapTap plays a more important role in China’s gaming ecosystem and is likely the key to investor interest.įor the uninitiated, TapTap is a community-focused mobile game platform that allows studios to distribute their games at 0% revenue share. Bilibili recently announced it will invest $123M for a 4.72% stake while Alibaba bought 0.76% for $20M. Shanghai-based X.D Network is in the center of the action, and the company just welcomed two new prominent investors to its roster. This is most striking in China, where developers are increasingly questioning the legacy app store distribution and business model. It’s clear that as anticompetitive pressures rise, content providers in certain regions are beginning to gain leverage in an evolving ecosystem with new models of user acquisition. For example, ByteDance acquired Moonton, known for its MOBA Mobile Legends, for $4 billion last month.There are major momentum shifts happening in mobile games distribution around the world: Apple vs Epic, app store fee reductions, Genshin Impact bypassing major Chinese app stores at launch, etc. Both Bilibili and Alibaba will be seeking to elbow in on the lucrative gaming sector and secure greater access to XD’s self-developed games and its game sharing community TapTap. Large companies continue to invest in and buy other studios, trying to diversify their businesses and increase their revenues. Bilibili has bought a 4.72 percent stake in XD for HKD960 million (USD123.5 million) and Alibaba 0.76 percent equity for HKD155 million, XD said today. He also said that TapTap’s success helped games like Genshin Impact skip traditional Android distribution channels dominated by Tencent.īilibili’s latest move is another example of tough competition in the Chinese video games market. Network, which runs Chinese game distribution platform TapTap mobile games accounted for 40 of Bilibilis 2020 revenues. “TapTap is disrupting how games are distributed in China with its community-focused platform and 0% take rate fee on IAP,” Niko Partners senior analyst Daniel Ahmad commented. It helps developers release games outside of traditional distribution models and get rid of the high fees charged by other companies, like Xiaomi and Huawei. Watch Demon Slayer: Kimetsu no Yaiba, Attack on Titan Series, JOJO's Bizarre Adventure Series, etc. Network also publishes games but platform TapTap is its biggest product. ![]() However, the earnings from games fell drastically (compared to 71% ratio in 2018), so the company is now seeking new ways to drive revenues. It published a few titles for the Chinese market, which accounted for 40% of total revenue in 2020. The deal will help the Chinese giant to strengthen its position in the game market.Īlthough its video streaming platform remains its main business, Bilibili isn’t new to the video games industry. Network’s common stock, which will give it a 4.72% stake. According to TechCrunch, Bilibili will purchase 22.66 million shares of X.D.
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