Bilibili Invests HK960 Million in Chinese Game Distribution Platform TapTap
With a recent investment of Bilibili hk960m x.d. Network Chinese Taptap, a Chinese game distribution platform, Bilibili is betting on mobile games as its future growth driver. By 2020, mobile games are expected to account for 40% of Bilibili’s overall revenue, a figure that is well in line with industry expectations. However, competition in the Chinese gaming industry is soaring, with tech giants sniffing out opportunities to invest in the space.
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Chinese game distribution platform TapTap has partnered with Hong Kong-based online game developer X.D. Network, which runs 38 titles on its platform. These include titles such as Ragnarok Online Mobile: Eternal Love, Girls’ Frontline, Muse Dash, and Sausage Man. However, the developer doesn’t charge a commission on in-app purchases, which has led to numerous disputes with game platform owners.
The two major investors are Alibaba and Bilibili hk960m x.d. Network Chinese Taptap. The latter purchased a 0.76% stake in X.D. Network, a sign of closer collaboration between the two companies. In China, Bilibili is the most popular long-form video network and game hub. The two companies partnered to launch mobile game Genshin Impact, a popular Chinese mobile game. MiHoYo also launched the game in China through its partnership with Bilibili, a decision that bypassed traditional Android app stores.
The company also disclosed that the number of users on TapTap increased by 52% over the first half of last year. As a result, the company is trying to attract more developers to make games for the platform. Meanwhile, competitors such as Tencent, Xiaomi, and Huawei are keeping a tight rein on game development and distribution.
Despite the lack of backing from Tencent, XD has managed to attract a large number of powerful investors including TikTok-owner ByteDance. It is also backed by Alibaba Group Holding, which owns the Taobao China site. Its founder Huang is a rare Chinese technology executive who regularly opined on Western tech trends.
Bilibili hk960m x.d. Network Chinese Taptap
In July, a new game called Miss Kobayashi’s Dragon Maid will be released on bilibili. This new streaming service is the result of a HK960 million investment from Bilibili. The service will support five languages and will allow its users to discover new anime series and watch trending titles.
With its experience in the video game industry, Bilibili hk960m x.d. Network Chinese Taptap has published a number of titles in China. In 2020, the company will make 40% of its revenue from games, down from a seventy percent ratio in 2018. Another gaming giant, X.D. Network, is also involved in the venture. The company aims to integrate the supply chain of games, from development to distribution.
Its strategy has changed from ACG-focused to mass-oriented, and it continues to grow its investment portfolio. In April alone, the company invested 1.6 billion RMB and $248 million USD. The company plans to launch more titles on its platform in the near future.