Tencent's 'Dungeon & Fighter' mobile game was approved in February by the city of Beijing to be operated in China following the cooldown of industrywide crackdowns. After this week's announcement of the game's release date, Tencent shares surged.
Tencent's Dungeon & Fighter Mobile Game Skyrockets Company Shares
Shares Rose by 4.5% Following Release Date Announcement
Tencent's long-awaited Dungeon and Fighter (DNF) mobile game is finally set to hit the market on May 21. Developed by Korean studio Nexon and officially named "Dungeon and Fighter: Origin," the mobile game is an adaptation of the immensely popular DNF series.
Tencent’s announcement on Monday of the game’s release date caused the company’s shares to surge by about 4.5%. The game has already seen success in South Korea since its launch in 2022, but its release in China was delayed due to government crackdowns on the gaming industry from 2018 to 2022.
Analysts anticipated Dungeon and Fighter: Origin to perform exceptionally well in China, foreseeing the game to secure a top spot in revenue rankings, and forecasted to make $600 million to $1.1 billion in annual revenues for Tencent over time. According to Bloomberg, Tencent sped up the game's release following positive beta tests to offset a "soft" financial performance in the first quarter of 2024, during which its title Dream Star faced tough competition from NetEase’s Eggy Party.
Nexon CEO Junghun Lee expressed confidence in the game's success, citing the successful beta testing and Tencent's unparalleled marketing campaign. "We strongly believe Dungeon & Fighter Mobile can energize our large base of existing fans and attract new players to the franchise," said Lee.
Despite challenges posed by the industrywide crackdown in China, Tencent seems to remain committed to expanding its presence in the domestic market, particularly in the mobile gaming sector.
Source:
Tencent to release 'Dungeon and Fighter' mobile game in May
Tencent shares skyrocket following new mobile game release date
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