Connect with top gaming leaders in Los Angeles at GamesBeat Summit 2023 this May 22-23. Register here.

Competition over the Chinese mobile-gaming market is about to heat up.

The Alibaba Group Holding Ltd., the Amazon of China, revealed plans today to start a platform that hosts mobile games, according to Bloomberg. This will put the company in direct competition with the leader in this sector, Tencent Holdings Ltd.

China’s mobile-gaming industry was worth $1.8 million in 2013. That’s a small piece of the overall $13 billion gaming market, but mobile is the fastest growing segment. The mobile space grew at a rate of 247 percent, which is greater than analysts were predicting as recently as September.

Alibaba announced that its new platform will help promote and distribute third-party mobile games. The company formed a new unit that will focus on mobile games and digital-entertainment business.


GamesBeat Summit 2023

Join the GamesBeat community in Los Angeles this May 22-23. You’ll hear from the brightest minds within the gaming industry to share their updates on the latest developments.

Register Here

Under Alibaba’s new mobile-gaming platform, developers will receive 70 percent of revenues. Alibaba will take 20 percent, and the company will donate the remaining 10 percent to charity, according to Alibaba’s news website, Alizila.

This gaming venture is the latest development in Alibaba’s efforts to increase its presence on mobile. The company released its mobile-messaging app in September, which competes against Tencent’s QQ app. In China and many other Asian countries, mobile gamers treat their chat programs as hubs where they keep up with friends and download games.

In addition to its chat app, Alibaba also recently introduced its Laiwang social network and its Mobile Taobao shopping app.

Mobile gaming is likely only going to get bigger and more important in China, and Alibaba doesn’t want to let Tencent walk away with it.

Alibaba is China’s largest e-commerce company. It provides business-to-business services like payment services, online web portals, and more. In 2013, it started moving aggressively into consumer-facing products.


Reblog this post [with Zemanta]

GamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. Discover our Briefings.