In a surprising move, Chinese gaming giant Tencent has reportedly reevaluated its mobile game development strategy, abandoning plans to grow Arena of Valor in the Western markets. The news comes after the game struggled to gain traction, with only 100,000 daily active users in Europe and 150,000 in North America.
Tencent's overseas marketing team was allegedly disbanded, leaving the game to "live or die on its own course" according to sources. This decision marks a significant shift in strategy for the company, which had previously invested heavily in Arena of Valor. The game, a Westernized version of Tencent's popular MOBA Honor of Kings, was released in 2017 but failed to replicate the same success it enjoys in China.
Arena of Valor's underwhelming performance can be attributed to several factors, including missteps in development and marketing strategy. Additionally, tensions between Riot Games, developer of League of Legends, and Tencent led to a rift that ultimately impacted Arena of Valor's marketing efforts. The game's struggles also stem from the fact that hardcore gamers in the West prefer desktop-based games like League, whereas Honor of Kings thrives on mobile platforms.
Despite these challenges, Tencent continued to invest significant resources into Arena of Valor, with some sources claiming the company "burnt a lot of cash" on the game. This includes a notable $4.5 million tournament where one of the top prizes was a Tesla car. However, it appears that the company is now shifting its focus towards more Western-developed independent games and the WeGame X platform on PC.
Tencent's decision to reevaluate its mobile game development strategy sends a signal that the company is willing to adapt and pivot in response to changing market conditions. With the rise of independent game development, it's clear that Tencent is looking to diversify its portfolio and target new audiences.