After the end of the game shares, profits decline, some enterprises rely on selling houses to maintain performance.
The epidemic in early 2020 was like a "black swan", leaving most industries in a halt, with a dismal performance in the first quarter. In the period of "home ownership", even homeopathy broke out, and it was pursued by all kinds of capital.
A chart provided by App Annie to TechWeb shows that the download of iOS terminal games in China in the first quarter of this year is significantly higher than that in the same period last year. Dong Zhenxiang TechWeb, an interactive entertainment industry analyst at Analysys, said that in the first quarter, the overall online entertainment industry, including games, has increased considerably. The scale of the game market is expected to exceed 50 billion yuan, which can be described as a record high.
TechWeb statistics of 27 A share game companies also confirmed the first quarter earnings announcement, of which 22 enterprises achieved profits in the first quarter, and 7 enterprises' net profit growth is expected to be over 50%. However, at the same time, there were 15 enterprises' net profit decreasing and 5 enterprises losing money.
Generally speaking, the first quarter results of A share game companies have been improving as a whole, but the polarization inside the industry has intensified. The era of buying up a game company by buying one or two products has gone forever.
With the advance of the resumption of labor and recovery, people's lives have gradually returned to the right track, and the capital bubble of the gaming industry has begun to burst. During the Spring Festival, the magnificent scenery on the whole line is no longer. The long-term competition in the game industry is implemented, and ultimately it depends on products and operations.
8 to achieve profitability
The first quarter results of 27 TechWeb A game companies predicted by the statistics show that 22 enterprises are expected to make profits in the first quarter, accounting for 81.5%. Among them, 37 mutual entertainment, tourism network and other 7 enterprises net profit growth is expected to be more than 50%.
37 mutual entertainment is currently the highest net profit in A share gaming companies, and is expected to grow from 700 million to 750 million yuan in the first quarter, up 54% to 65% over the same period. The perfect world and Kunlun world are close behind, and the profits are over 500 million yuan. Among the top 5, the net profit of the tour group grew the most year-on-year, reaching 80% to 100%.
To a certain extent, this reflects the promotion of game business brought by this year's epidemic accident. In the earnings report, Gigabit disclosed that the increase in net profit was mainly due to the extension of the Spring Festival holiday due to the epidemic situation and the increase in player activity. Perfect world financial report shows that its first quarter revenue of gaming business was 2 billion 108 million yuan, an increase of 47.69% over the same period, accounting for 82% of total revenue, and the net profit of gaming business grew 67.33% over the same period.
It is worth mentioning that the largest game company of A shares, century Huatong, was released due to the first quarter results of the delay in the epidemic. Its two important subsidiaries in Wuhan, Hubei, failed to complete the performance audit on schedule. However, according to the China Internet report, the epidemic will not have a long-term impact on the company. Sheng Yu network expects the first quarter results to rise year on year, exceeding the previous expectations, and its income for the 7 days of the Spring Festival increased by 60% over the same period last year.
Compared with the head platform, the disadvantages of the small and medium-sized platforms are weak. TechWeb statistics found that 15 enterprises expect net profit to decline in the first quarter, accounting for nearly 6 of all 27 A share game companies, of which 5 companies have suffered losses.
According to the earnings report, the reasons for the decline in performance mainly include the following points:
1. the new products failed to go online in a timely manner, such as palmtop technology and sky boat culture. Palm technology's "super man: the strongest Man" performed well in overseas markets, but the cost of product introduction was higher, and its contribution to performance was limited.
2. besides traditional games, other traditional businesses are greatly affected by the epidemic, affecting the overall performance. For example, Shun net technology, fast travel technology, Austrian flying entertainment, cohesion culture. During the epidemic period, the Internet cafe business of Shun network technology is the hardest hit, and the cultural and cultural plates of cohesion culture are basically stagnant.
3. the debt burden is too heavy and the operating capital turnover level is affected, which restricts the development of related businesses. God's entertainment and public interconnections belong to this category. Shen Shen entertainment lost 7 billion 150 million yuan in 2018, and its performance continued to deteriorate in 2019. The debt crisis has become the biggest problem facing the company.
Performance is under pressure, and some small and medium-sized enterprises are also actively helping themselves. Shun net technology has explored business models in the Internet cafe cloud computing, operators' cloud game business cooperation, and has begun to form related revenue from cloud business. Sheng Xun achieved its counterattack by selling its property. According to the results of the financial report, Sheng Xun will sell the self building real estate science and technology building to Shenzhen intelligent Limited by Share Ltd to achieve net income of 54 million 816 thousand and 900 yuan after tax disposal. If we lose this part of our earnings, we have just achieved breakeven in the first quarter.
From the above analysis, it is easy to see that although the number of listed companies that make profits is quite numerous, the continuous influx of new enterprises further aggravates the pattern of intra industry differentiation. This is particularly evident in the game market that has emerged during the epidemic.
App Annie statistics show that in the first quarter, China's popular game downloads TOP 10, Tencent ("King glory" "peace elite") and byte beating ("Kungfu cow", "brain hole master") almost accounted for the top five of the game, and in addition to "King glory" and "peace elite" two national heavy hand tour, most of the rest are casual games.
But when it comes to running water, it depends on serious games. CITIC construction investment forecast, the January 2020 "glory of the king" real water situation should be around 9 billion 84 million yuan, a record high. During the Spring Festival (-31 January 16th), only about 6 billion 520 million yuan was added to skin activities. We can see that Tencent is still the biggest winner. Although Tencent has not yet released its first quarter results in 2020, it is expected that it will not be bad.
In contrast, other small and medium game companies are not so lucky. The January 2020 mobile game report released by Gamma data shows that from the downloading volume of the game, the game application ranked 60 in the whole spring festival has not increased, but it has been squeezed by the head game, and the overall downloading has shown a negative growth trend. In the performance of streaming TOP 100, the more popular strategy classes and the downloads of placement games showed a negative growth trend.
Over the past two years, restricted by the shackles of the layout, a large number of small and medium-sized game companies have fallen down, plus the channel resources monopolized by the head platform, making the cost of the game industry steadily higher. A senior game producer Li Jian told TechWeb that "the cost of getting a game user in 2009 was about 1 cents, and in a large number of cases, it was about 8 cents or even 5 cents. Now it is generally around 150 yuan, and it has increased 1500 times in 10 years."
"Small factories are making products, big factories are going to buy them. If the team is more powerful, they will also accept the company. Now this is the way to live." Li Jian said.
This Spring Festival is only a small part of the carnival. The elimination game of small and medium game companies is continuing.
Byte beating pulsation
In addition to Tencent, NetEase two giants, another major aspect of the game industry this year is non byte run.
During the Spring Festival, the bytes beat to the App Store free list of TOP 10 by "Kung Fu special cattle", "Xiaomei Dou", "master of the brain hole", "my little home", "the agent is on the one hundred floor" and so on. According to the game grape statistics, at the most time, there are 8 products in the free list Top 10, which are backed by the byte beating system traffic. This means that at least in the Spring Festival stall traffic dispute, the byte beating has grabbed the largest new share.
In February 18th, foreign media reported that the byte beating would set up an independent game department. It was strictly led by the head of the strategic investment department, reporting directly to Zhang Yiming to solve the fact that the internal gaming business had no specific jurisdiction for a long time. The Department is focusing on serious games, and will launch a MOBA hand tour similar to "the glory of kings".
In April 24th, Yan issued a micro headline that the byte beating game business will continue to recruit over 1000 people in 2020 to meet the R & D needs of multiple game lines.
It is understood that game business is the long term business direction of byte beating. In 2015, the byte beating began to investigate the game industry and prepare for the game industry. At that time, the person in charge of the investigation was Yan. According to people familiar with the matter, from research to starting related businesses, the byte beating has been prepared for three years. To deal with game business, the internal consensus of byte beating is, "long term optimism, continuous investment, no short-term gains and losses".
Whether the byte beating in such a great effort on the game can compete with Tencent is the topic we are most concerned about.
Insiders are more pessimistic about this. Dong Zhenxiang, an interactive entertainment industry analyst at TechWeb, said: "at present, the headline entry game is cut from the distribution field of the game industry chain, which is also the most convenient module to enter. But the game industry as a whole is still a content oriented industry, and the quality product content or quality product R & D capability is still in the hands of Tencent and NetEase. The headlines can only be said to grab the cake with Tencent and NetEase in terms of channels, and the right to speak products is still in the hands of the latter traditional game giants. Although there may be some kind of exploding money being absorbed by the headlines, overall, there is still a gap between the headlines and the competition between Tencent and NetEase in the gaming industry.
Comparatively speaking, the research reports of brokerage firms generally believe that the entry of bytes can break the channel pattern formed by hand travel industry, which is conducive to improving the premium capability of game developers in the long run.
Yan also said, "game is a content industry. As long as we have patience, the content industry is hard to monopolize."
In the final analysis, the long-term competition in the game industry is implemented, and ultimately it depends on products and operations. It is reported that the fastest time of the first half of this year, the byte beating of the self research game may be on line, then look at the specific performance of the product.
5G cloud game becomes the 2020 hottest draught?
In 2019, it was called the first year of 5G, and 2020 was regarded as a year when cloud games broke out. The so-called 5G cloud game, its operation will be transferred from the user side to the cloud server side, the user's game device does not need any high-end processor and graphics card, only the basic video decompression ability can be. To put it simply, in the era of 5G, no matter how the user's mobile phone configuration is, it can smoothly access and use cloud games. With the advent of 5G commercial era, the market potential of 5G cloud games is also concerned by major game manufacturers.
Abroad, Microsoft has launched the Project XCloud cloud game project, SONY launched the PlayStation Now on the basis of PS4, Google online Stadia cloud gaming platform.
In China, the head game manufacturers including Tencent and NetEase are exploring cloud games. Specifically to A shares, century Huatong, 37 mutual entertainment, perfect world are actively layout.
In January of this year, 37 mutual entertainment announced the signing of a cooperation agreement with HUAWEI. The two sides will send senior technical experts to set up a joint tackling group of cloud game technology solutions. It is reported that 37 mutual Entertainment's first cloud game has been developed, and will visit HUAWEI cloud gaming platform in the future.
In April, century Huatong subsidiary's Shengxi game and Mi Gu interactive announced that the cloud studio built by the two sides was officially landing. The first project, the original version of the legendary cloud game, was launched and became the first online game product to test the original water cloud game in the industry.
In 2017, the perfect world began to research and develop cloud games. In its earnings report, it said that many of its games now include three major cloud operators, including the top operators and the head mobile hardware manufacturers. At the same time, they are actively developing the original cloud games.
Dai Bin, head of App Annie Greater China, told TechWeb that the core value of cloud games is to bring the quality of host games to ordinary terminals. If the market develops, it will be a great advantage to host games, and will attract a large number of hardcore players to host games. But this is not easy to achieve.
First of all, the development of cloud games needs the support of the whole industry chain. In the Asia Pacific market, the console game is a small market, and the extent to which the industry chain will develop is still a question mark. Even in the European and American markets, cloud games are not mainstream now, more like a category between host games and hand tours.
Secondly, now the whole entertainment market is becoming more and more fragmented, and cloud games are great works that require people to spend time immersed in them. App Annie released the report of the 95 after the win, which shows that 95 of the time spent on game APP has been 30% less than that of their older people.
Finally, 5G has not been popularized in large areas, and there will often be network instability or network delay. This will also affect the use experience of cloud games.
Dong Zhenye expressed similar views. He believes that "at present, the market of cloud games is still at an initial stage, because at present, the overall progress of the cloud game layout in China is relatively small, and it is still testing the water. Although some large factories are starting to operate the cloud games, at present, the attraction to users is not particularly high."
However, with the development of 5G, cloud games still have great potential for development. "This market will definitely develop. It will not be a pure concept. The cloud game has its rationality in technology. After catching up with the industrial chain, it will have the opportunity to challenge the current market structure of the game." Dai Bin said.