EA Is Actively Seeking Mergers, Apple, Disney, Amazon An

By April

Magic Weekly Report, review the news of the week and learn the latest industry trends.

Investment and financing

Game giant EA is actively seeking mergers, with Apple, Disney, Amazon and others among potential buyers

Sources revealed that gaming company EA (Arts top up mico codashop , Electronic Arts) has been actively seeking mergers, and the company has negotiated with "some potential sellers" in the past year, including Apple, Disney and Amazon. With a large number of acquisitions in the gaming industry in early 2022, including Sony's $3.6 billion acquisition of "Destiny" game studio and Microsoft's $68.7 billion acquisition of Activision Blizzard, EA is more confident in achieving its goal of being acquired.

Take-Two completes $12.7 billion acquisition of Zynga

In January this year, Take-Two announced a $12.7 billion acquisition of mobile gaming giant Zynga. More than four months after the deal was announced, the shareholders of the two companies have reached an agreement on all the proposed terms of the acquisition, and the deal will be completed on May 23. This is also the first of the three major acquisitions in the gaming industry to be completed this year.

Independent game developer raises $2.2 million

Recently, independent game publisher , with the support of Hiro , Seek VC and , raised $2.2 million in the latest round of seed funding. , believes that the company's mission is to bridge the gap between the growing and increasingly diverse global audience, who require games to perfect 3A and mobile experiences. , CEO and founder Paul said that he felt very honored to have the opportunity to work with such a game-focused and experienced investment team at an early stage.

Chanyou Technology invested in China New Digital Entertainment, holding nearly 20% of the shares

Chanyou Technology has invested in China New Digital Entertainment (Chengdu), holding nearly 20% of the shares. According to relevant recruitment information, this company may be mainly engaged in e-sports packaging, betting products and new media businesses.

Bilibili responds to the withdrawal of investment from Yanguang Technology

Recently, a notice suspected to be sent by Shanghai Yanguang Technology Co., Ltd. to employees showed that "Bilibili's withdrawal of investment and breach of contract led to the suspension of work." As soon as the news came out, some media verified it with relevant personnel of Bilibili, who said that "the screenshot content does not match the facts and is in communication with Yanguang Technology." According to verification, Yanguang Technology received strategic financing from Bilibili in April last year, and Bilibili also increased its holdings in October last year.

●Enterprise

Chinese Online: The company is exploring cooperation with Tencent and Baidu in the Metaverse business

Chinese Online said on the interactive platform that the company is exploring cooperation with Tencent and Baidu in the Metaverse business. The company provides digital product sales services based on the Zhixin Chain of the Tencent platform. The two parties cooperate in the production, transaction (excluding secondary transactions) and transfer of digital products in the cultural and sports fields. Based on Baidu's Xirang Metaverse platform, Baidu provides virtual venue services for the company.

Kuaishou and Tencent signed an agreement to reach multiple cooperation agreements including game licensing, distribution, and operation

On May 24, Kuaishou issued an announcement that Beijing Dajia (on behalf of Kuaishou) and Tencent Computer (on behalf of Tencent) entered into the 2022 Game Cooperation Framework Agreement. The two parties agreed to carry out multiple cooperation and other marketing and promotion service framework agreements on games, as well as provide a number of new marketing and promotion services.

Tencent continues to lay off employees, and gaming, financial technology and other businesses are not spared

According to Caixin.com, Tencent's layoffs that began in March have not stopped. All of the company's business groups have been affected, and the size of its staff will shrink across the board under the pressure of "cost reduction."

Chairman of Caesar Culture resigns due to health reasons

Caesar Culture announced at noon on May 26 that the company held the 16th meeting of the Seventh Board of Directors on May 25, 2022, reviewed and passed the "Proposal on the Election of the Chairman of the Company", and agreed to elect Director and Deputy General Manager Zheng Yashan as the Chairman of the Company's Seventh Board of Directors, and agreed that Zheng Yashan will serve as the Chairman of the Strategic Committee and a member of the Remuneration and Assessment Committee of the Company's Seventh Board of Directors, and his term of office will end on the expiration date of the term of the Company's Seventh Board of Directors.

The announcement shows that Zheng Yashan, female, Hong Kong nationality, was born in 1986 and is currently the company's director, chairman and deputy general manager. As of now, Zheng Yashan does not hold any shares in the listed company and is the daughter of the company's actual controllers Zheng Heming and Chen Yuqin.

Half of Sony's games will be available on PC and mobile phones in the future

On May 26, Sony plans to release about half of its games on PC and mobile phones by 2025. A chart shown during the company's annual investor day presentation shows that about a quarter of the company's game releases in 2022 will be on PC and mobile, with the rest distributed between its 4 and 5 game consoles. By 2025, about half of its released games will run on PC or mobile devices.

Xishanju holds 27th anniversary celebration

On May 25, Xishanju held its 27th anniversary celebration event at Kingsoft Software Park from 14:00 to 18:00 today, and also held the Xishanju 2022 Shenmihui event. Its core product "Jian Wang 3" and the new joint MV "I am Sheep Man" with Pleasant Goat were also released today.

During the event, participants were required to wear 27th anniversary commemorative T-shirts and hats to take photos, and the song "Setting Sail" and the dance performance "Looking Forward to Spring" were held. In addition, Xishanju's CEO Guo Weiwei also addressed all employees, reviewing the past and looking forward to the future. In the 2022 Shenmihui event, 18 teams from Xishanju's project teams and departments participated, including technology, art, distribution, and Jian Wang 1 and Jian Wang 3 project teams, etc. There was also a stamp collecting activity at the booth, from action COS to tennis calligraphy, and ten small games with different styles for everyone to play.

Zulong Entertainment's stock price hits a record low

On May 25, Zulong Entertainment's stock price fluctuated, falling by more than 14% at one point, setting a new record low. Zulong Entertainment has recently repurchased shares several times, but it does not seem to have brought enough market confidence.

●Product

Apex Mobile made $5 million in revenue in just one week

On May 17, the new tactical competitive mobile game "Apex Legends Mobile (Apex)" jointly developed by EA's Respawn Studio () and Tencent Photon was officially launched in the global market. This new game, which was switched from PC to mobile, won the first place in the iOS free game list in 71 countries and regions on the first day of its launch. In addition to the countries and regions where it was first tested, this heavyweight shooting masterpiece has topped the free list in 86 countries and regions.

According to Tower estimates, Apex Mobile has earned more than $4.8 million on the App Store and Play. It is worth mentioning that this game is the same as the console and PC version of Apex, that is, it is free, and the $4.8 million revenue comes from the game pass and character gun skins.

Zhongqingbao responded to the Shenzhen Stock Exchange's inquiry and disclosed that the four-month turnover of Metaverse "Brew Master" was 2,444 yuan

Recently, Zhongqingbao, which is at the center of public opinion, explained the various data and operating models of its highly-anticipated metaverse game "Brewing Master" when responding to the Shenzhen Stock Exchange's inquiry letter.

According to the data disclosed by Zhongqingbao, as of the reply date, the total recharge turnover of "Master of Brewing" was 2,444 yuan, and the amount of operating income recognized in accordance with the relevant specific accounting policies was 0 yuan. In addition, in the data of "Master of Brewing" disclosed by Zhongqingbao in the past four months, the best performance occurred in March. During this period, the game had 1,251 monthly active users and 15 paying users, with an average monthly ARPU value of 158 yuan and a recharge turnover of 2,369 yuan. Since the company promotes the game through multiple channels such as official websites and public accounts, the promotion cost of the game is negligible.

B station's first self-developed game this year is launched

On May 24, the domestic horizontal linear game "Carbonate Crisis" developed and published by Team Soda has been officially released on the Steam platform, and the game price is 38 yuan. As a highly mobile horizontal shooting game developed by the original team of "Snake Arms" – Carbonate Crisis (Soda), "Carbonate Crisis (Soda)" was also the first game officially launched among the self-developed games unveiled at the new game launch conference on August 4 last year.

Kuro Games releases concept CG for its new game "Mingchao"

Kuro Games' new game "Mingchao" released a concept CG, with a preview trailer – "The starting point to the world of Mingchao is about to emerge." "Mingchao" is positioned as an open world exploration game, with a high degree of freedom in combat gameplay and rich and diverse narrative stories. As of press time, "Mingchao" ranked first on the hot search list.

In just 6 hours, the CG trailer of "Ming Chao" had been played more than 1 million times on Bilibili, topping the comprehensive popular list. On the pre-order list, "Ming Chao" also ranked first with a score of 9.7.

The new game in the Honkai series, Honkai Impact 3rd, will be tested on May 25th

MiHoYo's new game in the Honkai series, Honkai Impact 3rd, launched a roaming test on May 25. At the same time, the game officially released the opening animation, and six characters including Kafka and Esta also appeared in the animation. The relevant character introductions were also announced. Currently, the game animation ranks first on the Weibo video hot list and the game list.

The "Jian Wang 3" computer room was attacked by DDOS traffic

Xishanju's "Jian Wang 3" computer room was attacked by DDOS traffic, with a peak of up to 139G, causing the game to experience disconnection and inability to log in. The official said that the technical team will work with the communications department to further improve defense.

Harry Potter: Magic Awakened – Optimizing the in-game text

NetEase's "Harry Potter: Magic Awakened" has updated and optimized the in-game text, changing the forbidden spell "Avada Kedavra" to "Avada" and "Crucia" to "Heart-Breaking Curse". The adjustments were made for compliance considerations, but some users believe that it is disrespectful to the original work.

AR Yo-Yo Linkage

On May 23, the AR yoyo "Infinite Yoyo" launched by the old Japanese toy factory will be officially released on May 26. The super cool gameplay can also directly link and release cool videos. "Infinite Yoyo" means "infinite yoyo". In fact, the electric drive method used in this yoyo can rotate "infinitely", which is very friendly to novice players. The key point is that it is equipped with a system that supports AR special effects. After shooting with AR dedicated APP software, various special effects will be run synchronously. It is reported that as many as 40 kinds of AR special effects will be gradually unlocked as the player's experience value accumulates.

Halo Infinite design director resigns

"Halo: Infinite" design director Jerry Hook announced his resignation. This is another senior executive lost by developer 343 after the departure of multiplayer mode design director Witts.

Jerry Hook announced on Twitter: "Today is my last day at 343, Microsoft, and the Halo series. From Xbox, Xbox Live to Halo, this journey has been full of creating new worlds, platforms, and products." Jerry Hook did not reveal much about his next plans. Previously, Witts, the multiplayer mode design director of Halo: Infinite, joined the Epic team after leaving and served as the chief game designer of Fortnite.

●Data & Reporting

China's gaming market revenue reached $45.5 billion in 2021

On May 24, the analysis agency Niko recently released a report showing that in 2021, China's domestic video game market revenue reached 45.5 billion US dollars, or about 296.7 billion yuan. In 2021, the total revenue of the Chinese game market reached 45.49 billion US dollars, a year-on-year increase of 5.5%. There were 706 million game players in 2021, a year-on-year decrease of 3.7%, which is related to the effective implementation of the current anti-addiction policy for minors. In addition, China has the most developed e-sports market in the world, with 434 million e-sports fans. At the same time, more than 16,000 metaverse-related trademarks have been filed in China. The report also pointed out that the average consumption of Chinese players in the game is expected to increase. According to Niko analysis, due to the reduction in the overall playing time of some Chinese players, players choose to spend more money in the game to advance their play progress.

●Financial report

Kuaishou: First quarter revenue was 21.07 billion yuan, a year-on-year increase of 23.8%

Kuaishou released its first quarter financial report for 2022. The financial report shows that the revenue in the first quarter was 21.07 billion yuan, a year-on-year increase of 23.8%, and the market expected 20.599 billion yuan. Online marketing services, live broadcasting and other services (including e-commerce) contributed 53.9%, 37.2% and 8.9% to revenue respectively. Among them, the online marketing service revenue in the first quarter was 11.4 billion yuan, a year-on-year increase of 32.6%, and the number of platform advertisers increased by more than 60% year-on-year.

NetEase: First quarter revenue was 23.6 billion yuan, a year-on-year increase of 14.8%

NetEase released its Q1 financial report, which showed that NetEase's revenue in the first quarter was 23.6 billion yuan, the market expected 22.637 billion yuan, and 20.5 billion yuan in the same period last year, an increase of 14.8% year-on-year. Gross profit was 12.8 billion yuan (US$2 billion), an increase of 16.1% year-on-year. Net profit attributable to shareholders of the company was 4.4 billion yuan, and net profit attributable to shareholders of the company under non-GAAP was 5.1 billion yuan. In addition, the intensity of R&D investment reached 14%.

Specifically in terms of games, the net revenue of online game services was 17.2727 billion yuan, of which the net revenue from mobile games accounted for about 66.9% of the net revenue of online game services, compared with 68.3% in the previous quarter and 72.8% in the first quarter of 2021. On May 20, NetEase Games' globalization ushered in another milestone. "Diablo: Immortal", jointly developed by NetEase and Blizzard Entertainment, announced that it will be launched overseas and in the Chinese and Southeast Asian markets on June 2 and June 23, 2022, respectively. At present, "Diablo: Immortal" has received more than 35 million reservations worldwide, and more than 15 million reservations in China.

NetEase CEO Ding Lei mentioned at the earnings conference that he hopes overseas market revenue can account for 40%-50%. This goal was first proposed in August last year, when NetEase Vice President Hu Zhipeng said he hoped to use "Naraka: Bladepoint" to promote the expansion of NetEase games overseas and eventually achieve a 50% revenue share.

Nvidia predicts a 15% drop in gaming business in the second quarter, with the Chinese and Russian markets expected to drop by more than $3 billion

GPU giant Nvidia released its first quarter financial report, which showed that in the first quarter of this year, Nvidia's revenue was $8.29 billion, a year-on-year increase of 46%; earnings per share were $1.36, both higher than analysts' expectations. However, Nvidia expects that its second quarter revenue may drop to $8.1 billion, which is lower than analysts' expectations. The financial report also warned that macroeconomic factors may cause the company's gaming and other businesses to slow down significantly.

Nvidia founder and CEO Jensen Huang attributed the downward revision of revenue expectations to the "challenging macro environment" faced by the company. Nvidia said that due to the conflict between Russia and Ukraine and the epidemic in China, the company's revenue in the quarter may be reduced by $500 million. The company's gaming business revenue in the second quarter will drop by about 15% from the previous quarter.

Kingsoft Software 2022Q1 Financial Report: Revenue of 1.853 billion yuan

On May 24, Kingsoft Software released its first quarter 2022 financial report, showing that the company's revenue for the quarter was 1.853 billion yuan, a year-on-year increase of 19%; the profit attributable to the parent company's owners was 99.386 million yuan, a year-on-year decrease of 14.74%.

According to the business division, the revenue from office software and services and online games and others accounted for 47% and 53% of the company's total revenue in the quarter, respectively. Among them, the revenue from office software and services business was RMB 871 million, a year-on-year increase of 13%. The revenue from online games and other businesses was RMB 982 million, a year-on-year increase of 25%, mainly due to the promotion of new mobile games (such as "Swordsman World 3").

The company's revenue cost for the quarter was 351 million yuan, up 44% from the same period last year; gross profit was 1.502 billion yuan, up 14% from the same period last year; gross profit margin was 81%, down three percentage points from the same period last year. In terms of R&D, the company's R&D cost for the quarter was 608 million yuan, up 24% from the same period last year.

Baidu releases first quarter 2022 financial report

On May 26, Baidu released its unaudited financial report for the first quarter ending March 31, 2022. In the first quarter, Baidu achieved revenue of 28.411 billion yuan; net profit attributable to Baidu (non-GAAP) reached 3.879 billion yuan, exceeding market expectations. Among them, Baidu's intelligent cloud business grew at a balanced rate and health, with revenue increasing by 45% year-on-year; Baidu's core R&D expenses reached 5.134 billion yuan, accounting for more than 20% of Baidu's core revenue for six consecutive quarters.

●Industry

The China Audio-Video and Digital Publishing Association e-sports working committee held a seminar on the e-sports industry report, with Tencent, NetEase, Perfect World and other related companies participating

The E-sports Working Committee of the China Audio-visual and Digital Publishing Association organized a seminar on the "E-sports Industry Report" and the meeting was held online. Representatives from many related companies such as Tencent, NetEase, Perfect World, Zheshu Culture, People's E-sports, and Gamma Data attended the seminar. The seminar introduced the outline of the "E-sports Industry Report", which is mainly divided into three parts: the current status of industrial development, market data and trend analysis. The situation of the e-sports industry was discussed in detail and interpreted in depth from multiple aspects such as the scale of the e-sports market, local policy support, the development of related industries, and the continuous improvement of the internal management system.

Kuaishou responds to rumors that Chairman Su Hua was taken away for investigation: Officially report to public security authorities

Today, there is news that Su Hua, chairman of Kuaishou Technology, was taken away by relevant departments at the end of April to cooperate with the investigation because he was suspected of being involved in a case. In response, Su Hua himself said that he does not believe in rumors or spread them. In response to this, Kuaishou subsequently issued an official statement, saying that it has officially reported the malicious spread of online rumors to the public security organs and initiated relevant legal procedures, firmly safeguarding the legitimate rights and interests of the company and Mr. Su Hua.

Luxury brand Gucci enters e-sports

On May 24, the e-sports platform recently announced that it will cooperate with the Italian luxury brand Gucci. The two parties will establish an e-sports training project "Gucci", which is a development program designed to improve professional skills through specialized coaching courses and teamwork activities. In addition, the project will also focus on the increasing number of mental and physical health issues that appear in games. Gucci VAULT's executive vice president and CEO of new business said that Gucci is a pioneer in the luxury industry's entry into the gaming world and will make this part of the company's mission. The team will establish meaningful relationships with the community in a real and effective way. Gucci will be committed to supporting rising stars and helping them cope with the challenges they may face in participating in e-sports.


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