Tencent sees an opportunity as women prefer playing mobile games in China.

• Tencent is placing its bet on an increase in global female players for its mobile game Honor of Kings, which was launched in the US and other countries in June.
• Analysts noted that the preference of women for playing games on their smartphones presents a growth opportunity in the otherwise male-dominated gaming industry.
• On the weekend, 33,000 spectators gathered at a stadium in Beijing to witness two teams battle for a $3 million prize.

The Chinese gaming giant is placing its bet on an increase in female players globally for its mobile game Honor of Kings, which was launched in the US and other countries in June.

On Saturday, 33,000 fans gathered at a Beijing stadium to witness two teams battle for a $3 million grand prize, which has already gained popularity in China.

Many in the crowd were young women, indicating how mobile games have attracted a broader audience beyond the typical male player of console and PC gaming days.

The game, launched in China in November 2015, is popular due to its simple learning process and short 15-minute sessions. It's accessible to anyone with a smartphone and can be played for free in real time, on the go.

Tianyun Gao, who started playing Honor of Kings in 2017 as a sophomore in college, became a professional commentator for the game's competitions a year later and used the game as a way to socialize, according to CNBC's translation of her spoken Mandarin.

An English major from Shanghai, Gao, has moderated Honor of Kings' competitions in two languages, including an international event held in Riyadh, Saudi Arabia, in August. She hopes to see esports become as mainstream as traditional sports and cites a Chinese soccer commentator as one of her inspirations.

This year, Tencent intensified its global expansion plans for Honor of Kings, with Level Infinite, its subsidiary, investing $15 million in developing the game's worldwide tournament in February.

Since 2016, an international version of the game has been available under different names such as Arena of Valor. However, the latest global push for Honor of Kings began in 2022. The game didn't reach the Middle East until earlier this year and only launched in key markets of North America, Europe, and Japan in June.

The game surpassed 50 million downloads outside China within a month, as stated by the company.

Overwhelmingly mobile-focused

The primary reason for the increase in gaming among women is their preference for mobile gaming, which does not require purchasing additional technology or consoles.

Half of our female players exclusively use mobile platforms, giving us a large potential market," stated Jackie Huang, head of Honor of Kings' global esports division at Tencent Games' TiMi L1 Studio. "We aim to increase the number of women in our player base.

Huang stated that 45% of global gamers are women and that Honor of Kings' user gender composition is relatively balanced. He emphasized that their goal is to offer a high-quality gaming experience to all users, regardless of their gender identity.

In the third quarter, Tencent's gaming business generated around 28% of its revenue from international games, which is its biggest revenue driver.

Riot Games, owned by the company, is a developer known for its PC-based League of Legends, which has become a popular name in global esports with its annual competition. Honor of Kings, with 100 million daily players, uses a similar format with two teams of five players each.

According to Xiaofeng Zeng, vice president at gaming research firm Niko Partners, multiplayer games are the second-most popular category for female gamers, with 95% of women preferring mobile games.

If Honor of Kings can maintain its position as the top game in China and internationally, Tencent can generate half its revenue from international markets, according to Zeng. The top overseas markets for revenue are the U.S., India, Malaysia, and Indonesia.

In Southeast Asia, female gamers are growing two to three times faster than male players, according to Zeng. Last month, a newly branded Honor of Kings global championship was held in Jakarta, Indonesia, with Malaysian team Black Shrew Esports winning the $300,000 first prize.

Early stages

Despite its popularity among women, Honor of Kings competitions are still dominated by men. The two teams competing in Beijing on Saturday were all male players.

The global championship this year included a female player from France's Team Vitality, who was managed and coached by women.

The game's female playable characters are the reason for the Honor of King's popularity among women. These characters are based on Chinese historical or mythological figures and have unique powers.

In 2021, the Honor of Kings competition in China introduced a tournament for female players. The women's finals are scheduled for December, with a prize of approximately $41,000 for the winning team.

According to Chirag Ambwani, SVP, gaming and entertainment, at SensorTower, the pandemic has significantly increased female engagement in the games space.

Gaming participation grew overall, he said, with specialized and easy-to-access content being a contributing factor.

SensorTower research revealed that Honor of Kings experienced "healthy growth" in the U.S. and Canada, with an average revenue of over $5 per user.