ByteDance, parent company of the popular short video app TikTok, is preparing to enter the most profitable market in the mobile field -- the gaming field, according to Bloomberg.
As the most highly valued startup in the world, ByteDance has quickly established a mature gaming department to lead it into hardcore or non-leisure gaming, people familiar with the matter said.
In the past few months, ByteDance has quietly acquired several game studios and exclusive game distribution rights. In addition, it has also set off a recruitment frenzy, dug top talent from competitors, and built a team of more than 1,000 people.
People familiar with the matter said that the two games of ByteDance will be released this spring, and the target customers include local and overseas players.
ByteDance are often compared to Facebook because its users already exceed 1 billion people. Initially, ByteDance was just a news aggregation application, launched today's headline, and then launched a short video sharing feature on TikTok and Douyin, which caused global attention.
"ByteDance has massive reach with 400 million daily active users via Douyin and can leverage this to acquire gaming users" and distribute games, said Daniel Ahmad, analyst with Asia-focused gaming research firm Niko Partners. "The acquisition of established game developers and other experienced game firms will give ByteDance a strong starting point. "
In the past few years, ByteDance has developed several casual games, which have become popular with the help of its video platform, but these fast-growing games are mainly made through advertising.
ByteDance's new move into the game field involves greater investment and is forming a major strategic shift aimed at more loyal gamers who are accustomed to buying game items in the game.
Entering the game field may help ByteDance to diversify its revenue sources. The company is also testing a new paid music app in Asia, adding to its expanding venture portfolio. A stable source of income will help ByteDance to make a final initial public offering (IPO).
More on Tech Industry
