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Tencent began distribution 'Clash Royale' Supercell China

Updated July 6, 2016 03:51 ET Hong Kong Tencent Holdings Limited. TCEHY 0.39% He started the phone - game last Supercell Oy ...

Hong Kong Tencent Holdings Limited. TCEHY 0.39% He started the phone - game last Supercell Oy in China, the first collaboration between the two companies after the company of Chinese Internet to distribute, has agreed for $ 8600000000, the Finnish manufacturer of mobile - games to purchase.

This week, Tencent, the largest gaming companies and social networking sites in China, said Supercell "Royal shock" for their messaging platform QQ and WeChat, where users can download games.

The move underscores the rapid rate at which work together, the two companies to bring more blockbuster, including mobile phone deals Supercell "Clash of Clans" for the hundreds of millions of people in China who use social networks regularly Tencent. For Supercell, access to these users is an excellent opportunity to increase revenue, analysts say.

Tencent Supercell game in China was able to increase the income of the Finnish company as much as $ 1000000000, said Peter Warman, CEO of Newzoo market research on video games.

"In China there is no power, the Tencent when it comes to the users to manage the games," Warman said.

China is the world's largest market for mobile games reached, with sales last year $ 7.1 billion by Newzoo. This year, it is expected that the market revenue $ 10 to 41% billion, he said.

However, for companies in western China has games to break a difficult market. Google's Android operating system takes up most of the smart phone market in the country, but alphabet Cª GOOGL 1.32% s' Google Play Store are not available in China. Instead, local players and Tencent control of the distribution channels for games. Tencent, the games through their own app - Applications provides, it also develops its own games - Stores and Mail. In May had Tencent 45% of of the top - 100 - China Mobile - Games on Android, according Newzoo sales.

Supercell has fared pretty well in China, where the securities among the 20 most profitable games frequently appeared on Android this year. The Finnish company has with the game publisher worked in Chinese Kunlun local application stores to distribute. But access to distribution channels are Tencent base supercell potential users much greater in China, analysts said.

WeChat Tencent QQ and are two of the most frequently used applications in China. At the top of their email Basic Functions applications are equipped with mobile payment features let the users to pay for games and other online services. Mars, WeChat has 762 million monthly active users, while mobile QQ had 658 million. Most users of the application "in China, estimated analysts.

Like most mobile games are supercells to download, and the company earned sales of virtual currency in games charge used skills and weapons of the characters to improve. Despite making only four games, Supercell had a turnover of € 693 million ($ 766 million) last year on sales of € 2.11 billion.

Executives and industry analysts say Supercell apart from its competitors because it involved players and extend the life of their games by holding regular updating.

"Royal Clash" released this year, is a fighting game in which a player a team of several character controls like knights, elves, giants and witches, the enemy and attack the castle.

Byron Wang, who works for an investment company in Shanghai, download "Royal shock" on your iPhone last month. Da, 23, has spent almost and win more battles $ 100 for the game to their strongest fighters.

"If you spend a lot of time, can become competitive. But if you want to save time, spend money. I can not wait," said Wang, who also plays the games on WeChat Tencent. It is expected that the Chinese company will not make changes to its Games and Supercell after the acquisition will make.

I swear write Osawa in juro.osawa@wsj.com

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