According to a report by the news agency Reuters, Tencent is said to be discontinuing its game “Arena of Valor” (iOS, Android, Switch) in Europe and North America. The game is so successful in China that it is one of the most successful and lucrative mobile games in the world.
Where is the information coming from? The news agency Reuters reports on this and refers to sources that it does not disclose.
This is the special thing: As recently as April 2019, “Honor of Kings”, the China version of the game, was listed as the “most lucrative mobile game” in the world by Superdata.
It was the game that generated the highest digital revenue globally on mobile.
Honor of Kings is incredibly successful in China and has been for years.
This is what Tencent is said to have undertaken: It is said that Arena of Valor flopped in Europe and North America:
- the mobile MOBA has only 100,000 players a day in Europe
- and 150,000 daily active players in North America
According to information from GamesIndustry.biz, Arena of Valor reportedly generated only 3 million $ in its first year, which is what the Asia version “Honor of Kings” makes in a day.
Tencent has essentially written off “Arena of Valor”. Plans to see the game grow in the West have been abandoned, and the marketing team in Europe and North America has been disbanded. Now Tencent will simply let the game continue to run.
It is further said that Tencent now wants to focus more on building better relationships with local partners here, in what they perceive as “overseas”.
The flop of Arena of Valor is buying local developers like Blizzard some time to tap into the market for “mobile games” in the core gaming area with their own franchises. Blizzard is planning to do this with Diablo Immortal:
Additionally, Tencent wants to focus more on PC and consoles.
This is Arena of Valor: “Arena of Valor” is a MOBA that is essentially a mobile version of League of Legends.
The game is incredibly popular as “Honor of Kings” in China, played by millions there and generating massive revenue. Honor of Kings was such a hit that the Chinese government even enacted censorship laws against it.
Tencent released the game on iOS and Android here in the West, but apparently, it failed to engage gamers here in the West.
Allegedly Riot was upset about competition for LoL
What were the problems? According to the report, there were a variety of issues that Arena of Valor faced in North America and Europe:
- Core gamers in the West are at home on PC – not on smartphones
- there are no 4G networks in Europe and North America suitable for such a game
- they incorporated “Western heroes” like Superman or Batman into Arena of Valor, which did not help much and made international tournaments impossible
- furthermore, the infrastructure that supports Honor of Kings in China, like WeChat or QQ, was lacking here in the West
According to Reuters, Riot Games complained to Tencent that the game undermines its brand “League of Legends”.
Subsequently, Tencent reportedly froze marketing for Arena of Valor for two months. After that, Riot had the right to review the marketing for Arena of Valor beforehand and to object if famous gamers appeared there. Sources at Reuters also tell this.
Furthermore, Tencent reportedly held large tournaments with a Tesla car as a prize fund, costing $4.5 million for a game that did not perform well. A source is quoted saying a lot of money was burned there.
Is Arena of Valor making way for Mobile LoL?
What could come next? The news that Tencent is discontinuing “Arena of Valor” comes shortly after it became known that Riot Games and Tencent are likely working on a mobile offshoot of League of Legends.
League of Legends is a major brand in Europe and North America. It is quite possible that the end of “Arena of Valor” in the West also has to do with the fact that it is much easier for Tencent to sell players here a “Mobile LoL” than an “Arena of Valor.”
This is behind it: In China, the mobile business is booming. Companies that have been successful in South Korea and China have been trying to establish their incredibly successful games in the West in recent years:
- Netmarble with Lineage 2 Revolution
- or Tencent with Arena of Valor
Arena of Valor was also considered a really good game for handheld devices.
But the games seem not to have the same success here as in Asia. There appears to be a lack of acceptance for mobile gaming in the “core gamer” sector.
Here in the West, smartphones are still regarded as a casual platform for games like Candy Crush or Clash Royale.
The flop of Arena of Valor is buying local developers like Blizzard some time to tap into the market for “mobile games” in the core gaming area with their own franchises. Blizzard is planning to do this with Diablo Immortal:
