The number of users exceeded 200 million A-share shareholders, and the revenue exceeded 3079 A-share companies with 6 billion yuan. Why is "Glory of the King" toxic?

as of the last week of May, Arena of Valor's registered users had exceeded 200 million, with a penetration rate of 22.3%. This means that one in seven Chinese has a "Arena of Valor" registered user, which is higher than that of A-share investors.

there is no doubt that Arena of Valor is already a popular mobile game at the phenomenal level, and it is also the most profitable mobile game in the world. In the mouth of the player, this mobile game is affectionately called "King Pesticide", which is really poisonous.

once upon a time, friends around me began to stay up late to upgrade, and even the restaurant on their doorstep launched the" Arena of Valor "package. This whirlwind even financial people can not resist, Societe Generale Securities agricultural industry researchers wrote a "Arena of Valor" strategy (glory, pesticide silly not clear), many financial people abandoned Texas hold'em and embraced "Arena of Valor" … With the help of these people, the registered users of "Arena of Valor" have exceeded 200 million, more than A-share shareholders.

what is more eye-catching may be the moneymaking ability of this popular game. The monthly income of training is 50,000, the annual salary of game anchors is 20 million, and the daily income of selling skin is 150 million. "Father of Arena of Valor" spends 98 million yuan to buy property in Hong Kong, with a monthly flow of 3 billion yuan in the first quarter. The net profit of 3212 listed companies is not as good as that of "Arena of Valor." Looking at these numbers, you may also wonder why this game is so attractive.

according to public information, Arena of Valor is a MOBA game developed by Tencent. The method of playing is similar to dota mobile games, mainly competitive games. Players can play PVP games in various ways, such as 1V1, 3V3, 5V5, etc., and can also participate in the adventure mode of the game, the customs-breaking mode of PVE, and the annual qualifying match of the game after meeting the conditions.

Internal testing began in July 2015 and public testing began in October 2015. In December 2015, shortly after the public trial, "Arena of Valor" raised the DAU to 7.5 million, and by the end of 2016, the DAU exceeded 50 million, setting a new industry record. In addition, the revenue of "Arena of Valor" is also setting new highs.

< strong > the number of registered users has exceeded 200 million, and the number of registered users exceeding A-share investors < / strong >

"Arena of Valor" is already equivalent to the number of users of a social application.

according to brokerage China, aurora iAPP data showed that as of the last week of May, Arena of Valor's registered users had exceeded 200 million, with a penetration rate of 22.3%. This means that one in seven Chinese has a "Arena of Valor" registered user, which is higher than that of A-share investors. In May, the average DAU of "Arena of Valor" was 54.128 million, while the number of MAU reached 163 million, setting a new record for the mobile game industry.

in addition, a report from Everbright Securities predicts that the DAU of" Arena of Valor "has exceeded 60 million, between 60 million and 80 million, surpassing the previously popular game" League of Legends ". Data from Quest Mobile also show that the DAU of "Arena of Valor" is growing rapidly. In April, Arena of Valor's DAU growth rate was 180.8 per cent year-on-year.

No matter which data it is, it proves that the number of daily active users of "Arena of Valor" has achieved rapid growth in less than two years, and there is great potential for future growth. This is because the number of daily active users of "Arena of Valor" is very high, including many elite users who began to say that they have been addicted to playing "Arena of Valor". And the average daily use time of these users reached 97.7 minutes, accounting for 8.5% of the game time in the entire mobile game industry. 11.3%.

picture shows Arena of Valor DAU and average daily use time. From the Tianfeng Securities report

these data show that the head effect of" Arena of Valor "is becoming more and more obvious. Once this effect is formed, it will continue to have an impact, including revenue, and so on.

< strong > revenue in the first quarter is 6 billion yuan, making it the most profitable mobile game in the world < / strong >

"Arena of Valor" is a Tencent super money printing machine.

the Financial Times quoted CNG, a Chinese gaming industry consultancy, as saying that Arena of Valor earned 5.5 billion-6 billion yuan in the first quarter of this year.

according to the forecasts of Galaxy International and Everbright Securities, the brokerage China has made a conservative estimate of the revenue and net profit of "Arena of Valor": the operating income in the first quarter is about 6 billion yuan. With reference to the 60.93% gross profit of Tencent Holdings'"value-added services", "Arena of Valor" can bring 3.656 billion yuan of gross profit for Tencent Holdings. For example, with reference to Tencent Holdings' overall net profit of 29.34%, "Arena of Valor" contributed 1.76 billion yuan to Tencent Holdings' net profit.

many people may not have a specific idea of how much money "Arena of Valor" makes. To this end, brokerage China compared the revenue and profit of this game with 3268 listed companies in A shares, and found that more than 90% of the listed companies could not compete with the game:

< strong > in terms of revenue < / strong >, there are currently 3268 listed companies in the A-share market, of which 3079 listed companies' operating income in the first quarter is less than 6 billion yuan, less than "Arena of Valor", accounting for 94.22% of all A-share listed companies. In terms of the companies with the smallest operating income, the operating income of "Arena of Valor" in the first quarter is equivalent to the total operating income of 221listed companies.

< strong > in terms of net profit < / strong >, there are 3212 listed companies in the two cities whose first-quarter net profit is less than 1.76 billion yuan, which is lower than that of Arena of Valor, accounting for 98.29% of all A-share companies. If you look at the enterprises with the least net profit, excluding the loss-making enterprises, the profit scale of "Arena of Valor" in the first quarter is equivalent to the sum of 432 listed companies.

< strong > conversely, < / strong > only 186 listed companies in the two cities surpassed "Arena of Valor" in first-quarter revenue, while only 55 listed companies exceeded "Arena of Valor" in their first-quarter profits.

in addition, according to the monthly income ranking of App Annie5, "Arena of Valor" ranks first, surpassing "monster marbles". And from the top10 ranking, Tencent has four games, and the 10th place is also a game company invested by Tencent. Before, Tencent in self-research games has been relatively weak, especially NetEase's "A Chinese Odyssey" and "Dream Journey to the West" continue to brush the list. However, the current situation seems to have been changed by "Arena of Valor" and so on. But Southern Weekly reported that Arena of Valor is the mobile version of League of Legends. Buying copyright, copying, and moving to a mobile phone are shortcuts to the success of the game.

except for third-party data, Tencent has not specifically disclosed the revenue of" Arena of Valor "so far. Tencent's revenue from online games grew 34 per cent to 22.811 billion yuan in the first quarter of this year. The growth of the game business was mainly contributed by smartphone games such as Arena of Valor, Crossing the Line of Fire: gunfight King and Valley of Dragons, and PC client games such as League of Legends. Specifically, revenue from smartphone games was 12.9 billion yuan, a year-on-year growth rate of 57% higher than that of PC games.

generally speaking, there are three main ways to make money for a game: an one-time purchase when downloading; an embedded advertisement in the game; and a charge for in-game props or upgrades. In the Chinese game market, most companies adopt the third approach, and have made improvements, including "Arena of Valor", in order not to arouse user disgust.

in the "Arena of Valor" game, coins are divided into three categories: gold coins, diamonds, and coupons. Only coupons need to be exchanged, and the first two can be accumulated by experience. Heroes, skills and skin can be purchased in the game, of which only skin must be paid for. For example, Xiang Yu, one of the hero's skins, and Luban No.7, a video game boy, both cost 288.8 yuan. Although Buy skin is similar to Tencent's early QQ skin, the business generates 150 million yuan in revenue every day.

it is reported that Tencent's year-end bonus to the "Arena of Valor" team is as high as 100m yuan. Prior to this, it was revealed that the "father of Arena of Valor" spent 98 million yuan to buy a house in Hong Kong. In addition to bringing a huge amount of revenue to Tencent, the big IP of "Arena of Valor" also supports a large number of people. For example, the monthly income of 30-50,000 training, the annual salary of 20 million game commentary, the gathering of millions of fans of the post bar, huge sales of game consoles and so on.

after accumulation over the past decade, Tencent has grown into the largest and most profitable game company in the world. According to Newzoo, global gaming revenue is expected to total $106.5 billion in 2017, $112.5 billion in 2018 and $118.6 billion in 2019. Among them, the income of mobile games will continue to increase. In the future, Tencent obviously wants to harvest more game revenue.

< strong > Why is the mobile game "Arena of Valor" so popular? < / strong >

an internally competitive game has always been popular within Tencent, so like Wechat, the birth of "Arena of Valor" is not easy.

in 2014, Timi Studio Group-L1 Studio of Tencent Interactive Entertainment in Chengdu spent seven months making "heroic deeds" imitating LOL. At the same time, LightSpeed Studio, owned by Tencent, has also made a "national super god" in the same way. After the two games were tested on the same day, Hero was completely defeated. After that, "heroic deeds" changed its name to "Arena of Valor" and became a popular style after the public test in October 2015.

according to reports, Yao Xiaoguang, vice president of Tencent and president of Tencent Interactive Entertainment Timi Studio Group, once produced the first batch of successful Wechat games such as "Tiantian Cool run" and "Aixiaochu". At an event on June 11 this year, Yao Xiaoguang gave a keynote speech on "beyond the boundaries of Cognition-the Road to Tencent phenomenal Game Entrepreneurship", revealing for the first time the research and development process of "Arena of Valor" and the charm of its success.

talking about the great influence of "Arena of Valor," Yao Xiaoguang believes that this is a miracle created by a group of young people. As a social phenomenon-level game, Arena of Valor can no longer be understood only by the concept of "game", it has become a new way of social interaction. He also said that the key to the success of "Arena of Valor" is that it has solved the three most criticized problems in mobile games in the past. That is, the lack of fairness in competition, the repetition of the game experience and the slow pace of the game:

the lack of fairness in competition: "for a game to be fun, players must be able to enjoy it. Where does the fun come from? Is to let players see their own growth and feedback after giving. " But Yao Xiaoguang found that in many competitive mobile games, charging can become stronger, and free players can never beat paying players.

"We think this is an unfair game." Yao Xiaoguang said that Arena of Valor decided to challenge the common practice in the industry to make fair play possible, so that players can have fun in the game without spending money. So in Arena of Valor, the ability of each hero is fixed, and the key to winning lies in technology and teamwork, which is something that players can get through hard work.

the game experience is repeated. Yao Xiaoguang simulates Arena of Valor and chess and cards. Similar to mahjong's "3 missing 1", "Arena of Valor" is "4 missing 1", because five people can play as a team. But the combination of "Arena of Valor" is more abundant, because you don't know what hero your four teammates and five opponents will choose, and everyone's strategy and style of play are full of variables, much like in real life, all the people with the highest Rank must not rely on proficiency in operation, but on consciousness and strategy, much like a game of chess ~ so it is almost impossible to experience repetition in the game.

the pace of the game is too slow. It used to take 45 minutes to an hour for a computer competitive game to play, but "Arena of Valor" revolutionized the design of the game, making it only about 15 minutes for a game, greatly speeding up the pace of the game and adapting to the characteristics of modern fragment time.

Edit: jessica