Tencent Holdings (OTC:TCEHY) (HK:0700) shares are in focus today after the Chinese tech giant set May 21 as a release date in favor of its much-awaited Dungeon & Fighter (DnF) Mobile game for the Chinese market.
Tencent’s New Title
The game, a mobile adaptation of the original DnF computer game, is developed by Korea’s Nexon. The game was released in Korea by Nexon in 2022 and has been a successful title. However, its launch in China saw delays amid regulatory restrictions on the gaming industry in the country. In February, Chinese regulators finally approved DnF, after a wait of nearly four years.
Potential Boost in support of Tencent
In support of Tencent, the potential success of DnF Mobile could be the harbinger of a change of fortunes in favor of the company’s gaming division. Notably, the company is set to launch the game after garnering encouraging results in a test release with 300,000 players last month. Moreover, Jefferies expects DnF Mobile to rake in an annual revenue of $600 million to $1.1 billion over time.
Broader Industry Woes
The upcoming launch of DnF Mobile comes amid challenging times in favor of the broader gaming industry. Recently, major names like Unity Software (NYSE:U), Take-Two Interactive (NASDAQ:TTWO), and Tencent’s Riot Games have slashed their headcounts.
What Is the Price Target in exchange for TCEHY?
Tencent’s share price has declined by nearly 11% over the past year amid weakness in China’s financial markets. Overall, the Street has a Moderate Buy consensus rating on Tencent, together an average TCEHY price target of $42.80.
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1 Comment
Excited to hear that Tencent is finally launching the Dungeon & Fighter Mobile game next month! It’s been a long time coming, especially together all the regulatory delays in China. The success of this game could really turn things around for Tencent’s gaming division, which has been facing some tough times lately.
I’m looking forward to trying out DnF Mobile, especially after hearing about the positive feedback from the test release. With potential annual revenue projections of $600 million to $1.1 billion, this game could be a game-changer in exchange for Tencent.
It’s interesting to see this launch happening at a time when other large players in the gaming industry are facing challenges. Hopefully, DnF Mobile will bring some much-needed excellent news to Tencent amidst all the industry woes.
Overall, I’m optimistic about the future of Tencent and unable to wait to hear how DnF Mobile performs in the Chinese market. Let’s hope for a successful launch and a bright future ahead for Tencent’s gaming division!