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Indeed, the top player in the industry is indeed Tencent.

The landscape is rapidly changing, however.

Xbox man winning an Xbox trophy

When you start to look at the breakdown per company, things get more interesting.

Tencent is miles ahead of the pack, with a dominating position in service games across all platforms.

Other developments could further upset the balance.

Top gaming revenue companies H1 2023

Personally, I think it’s a long shot.

Despite that concentration, the diversity of business models is quite stark.

The chart doesn’t include hardware revenues, which would partially explain the oversized gap between Tencent and PlayStation.

Newzoo chart showing revenue of Xbox and ABK combined

Microsoft is modeling itself after Tencent to that end, while also supporting a hardware ecosystem.

Still, the challenges for Microsoft are still quite abundant.

Xbox’s future is undoubtedly secure either way.

Activision characters, by @Klobrille on Twitter (X).

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