'Rules of Survival' screenshot via NetEase / GamePressure.com

Chinese video game publishing giants, Tencent (TCEHY) and NetEase (NTES), reportedly saw a major surge in mobile gaming revenue from outside of China in 2018.

According to a recent report by IHS Markit, Tencent and NetEase’s combined international mobile revenue increased 505% in 2018 to $472 million.

IHS Markit

The growth in global revenue coincides with China’s ban on all new game releases from March to December of last year, forcing publishers to look abroad to increase market share.

“The unpredictability of the domestic market has underlined the importance of geographical diversification, so this dramatic increase in international revenues will be well received by both companies,” said Piers Harding-Rolls, the director of games research and analysis at IHS Markit.

According to the report, a significant amount of the revenue growth was driven by two battle royale titles that are aimed at two different international markets: Knives Out (Japan) and Rules of Survival (Southeast Asia). For example, Knives Out was responsible for 80% of NetEase’s $324 million Apple Store and Google Play revenue.

This growth fits with recent projections that predict the mobile gaming market will reach $70 billion in 2019, accounting for over half of the projected $138 billion gaming industry.

IHS Markit Report: Tencent and NetEase Non-China Mobile Games Revenue Increased 500 Percent in 2018
Related: Esports Pro Is Now Recognized as an Official Profession in China



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