Ironically
in 2010 the chairman of Alibaba Group announced that he would never invest in
the gaming sector as it would sway the generation to something
unproductive. Contradicting that Alibaba
a major e-commerce giant in China publicized that the company would now expand
by entering the mobile gaming industry which would a gigantic market worth $8
billion. The two main
competitors for Alibaba are Baidu and Tencent Holdings.
Thus
now Alibaba wants to acquire a strong hold in Tencent games where Biadu is
already quite settled in the market.
According to a recent publication Lui Chunning the director mobile said
that by this intervention Alibaba has an aim to take over the dominance of
Tencent Holdings in the industry.
Tencent
has been in the gaming industry since a fairly long time. They have captivated
almost 90% of the market without giving other competitors much room for growth.
On the other hand, Baidu and Alibaba have a focused technology and strategic
mechanism that can become an imminent threat to Tencent in the gaming industry.
Although
Alibaba does not have much significance in the gaming market so far and there
future is still doubtful with the strong hold of Tencent in the market. Baidu who
is the lion of search engines in China is the main competitor to Tencent. So
now Alibaba not just have to beat Tencent but also Baidu. According to Baidu’s stock news last
year a gigantic sum was invested in the gaming industry. 91 Wireless China’s most
popular app store was paid a large sum by Baidu to facilitate their gaming
sector. On April 2014 it was expected that Baidu would introduce a platform for
mobile gaming through 91 Wireless that is a popular mobile application platform
in China providing diversified services such as e-books, games, music etc.
Baidu
has a sound marketing strategy to generate traffic for its gaming sector where
it plans to use its own search engine and other video sites to facilitate its
program. Further it also seeks to increase traffic by getting gamers through
their online community namely Baidu Teiba which has mass usage with
approximately 1 billion users and 8 million communities that cater to
diversified topics. This initiative would help facilitate both heavy and casual
gamers according to Baidu.
According
to a recent survey it has been concluded that the gaming industry has an
average daily download rate of 100 million. This clearly indicates the
popularity of gaming in China. With Tencent’s strong hold, Baidu’s great strategy and Alibaba’s add on in the
gaming industry it is likely a major transition will be observed where all
three giants will be battling to become the game winners.
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