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TikTok is taking a big leap forward in gaming, adding a dedicated tab within the short video platform, its first venture into a different entertainment format.
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The Chinese company is the latest video platform to expand beyond video into games, one of the most lucrative entertainment industries, after Netflix launched mobile games last year and filling a void left by rivals Snapchat and Facebook, which are ending their games. platforms.
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Users will be able to access games via a button on the homepage of one of the world’s most popular video apps. It will feature a slew of mobile games where ads can run and users can pay for additional content, according to four people familiar with the plans.
ByteDance, the Chinese owner of TikTok, has long been developing its own games and looking to bring titles to the new channel, a person familiar with the strategy said. Chinese regulators have cracked down on gaming in the country over the past year, delaying approvals for new offerings and limiting the amount of time children can play video games.
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Douyin, the Chinese version of TikTok owned by ByteDance, has been offering so-called hyper-casual games since 2019. TikTok has hired gaming staff around the world and currently has 20 positions available.
TikTok and gaming were made for each other
Assaf Sagy, Head of Global Gaming at TikTok
Assaf Sagy was named head of TikTok’s global games last month. Based in Israel, the former McKinsey director and Intel system architect joined in 2020 after spending three years at Snap.
“TikTok and gaming were made for each other,” Sagy wrote in a LinkedIn post announcing his nomination last week. “TikTok has amply demonstrated its value in helping consumers discover what’s fun, valuable and popular. I look forward to working closely with all game companies around the world to help make TikTok a central your marketing strategies.
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The new channel could be announced as early as Nov. 2 at “TikTok Made Me Play It,” which the company dubbed its “first gaming event.” It will feature speakers from Electronic Arts, 2K, VNG Corporation, NetEase Games and Homa gaming groups.
TikTok moderators in Europe, which remove harmful content posted on the platform, tested games before they were released to users, according to two people with knowledge of the process.
“We are always looking for ways to enrich our platform and regularly test new ideas that we believe can bring value to our community,” TikTok said.
The creation of the gaming channel follows tests in Vietnam in May, first reported by Reuters. Over the summer, TikTok quietly rolled out a feature allowing video creators to connect to simple games that, once clicked, can be played in a pop-up web browser.
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TikTok already has a partnership with Zynga, the maker of game titles like High heels! which have become hugely popular thanks to viral posts from TikTok. It has more than 10 gaming partners, including Voodoo, Aim Lab, and Matchingham Games.
Two people familiar with TikTok’s plan said it was trying to emulate Netflix, which last year created mobile games based on its streaming content, such as the seriesStrange things.
But social media rivals have struggled in this space. Last month, Snapchat-maker Snap said it would stop investing in games, while Facebook will shut down its gaming app on Friday, about two years after it launched. Meanwhile, Google said earlier this month that it would mothball Stadia, the three-year-old cloud-based group it once called “the future of gaming.”
The mobile gaming industry is still experiencing healthy growth, with revenue expected to grow from $104 billion last year to $128 billion in 2026, more than total spending on console and PC games combined. according to gaming analysts Omdia.
“There’s a lot of room for TikTok to have an impact,” said George Jijiashvili, an Omdia analyst.
“Finding (games) in the app is cumbersome as they are quite hidden. Adding a dedicated game tab will definitely increase discovery and usage,” he added.
Additional reporting by Tim Bradshaw in London.
© 2022 Financial Times Ltd.
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