Last week, Tencent, a major player in the Chinese mobile games industry, launched its latest party game, DreamStar. In an unexpected twist, Tencent has turned to ByteDance’s advertising platforms to promote DreamStar, setting the stage for a potential showdown with NetEase’s successful title, Eggy Party.

The collaboration between Tencent and ByteDance marks a significant shift in their relationship. Both companies had previously engaged in a fierce rivalry, even restricting each other from their respective platforms. However, Tencent’s recent reliance on ByteDance’s popular platforms, such as Douyin, suggests a warming of relations between the two tech giants.

Despite Tencent’s extensive advertising resources, including its ad network and Tencent Advertising arm, the company has strategically chosen to tap into ByteDance’s vast audience. Approximately 38% of Tencent’s DreamStar ads have been placed on ByteDance’s Pangolin ad service in the past month.

DreamStar, Tencent’s latest venture, is projected to generate up to $842 million in its first year. This ambitious goal puts the game in direct competition with NetEase’s Eggy Party, which boasted an impressive $1.1 billion in revenue in 2023, thanks in part to promotions on ByteDance’s platforms.

The similarities between DreamStar and Eggy Party, from genre to art style, have led to rising comparisons in their promotional strategies. Tencent’s strategic move to advertise on ByteDance’s platforms indicates a willingness to explore new avenues for user acquisition and engagement.

This warming trend between Tencent and ByteDance has unfolded throughout the year. Beyond advertising, Tencent has permitted streamers to play its games on ByteDance platforms. Even China’s top livestreamer, Zhang Daxian, known for playing Tencent games like Honor of Kings, has started streaming on a ByteDance platform, providing a sneak peek of DreamStar to a broader audience.

As ByteDance steps back from the gaming industry, Tencent seems to be growing increasingly comfortable leveraging the services of its fellow tech giant. The unfolding collaboration raises questions about whether Tencent’s strategic move will propel DreamStar to surpass the success of NetEase’s Eggy Party.

The dynamics between these gaming giants continue to evolve, and industry observers are keen to see how this unexpected collaboration will impact the competitive landscape in the mobile games market.

Source: adapted from an article by Aaron Astle, News Editor for PocketGamer.biz.