Successful PC or console games going mobile:
The 2019 award-winning Call of Duty Mobile achieved approximately 150 million downloads in the first month of its mobile launch, raking in US$53.9 million in revenue. That proved again the potential of extending successful PC or console games to mobile devices, and led the trend of popular PC and console game IPs going to mobile versions. More similar cases are predicted in the next few years. Three years ago when the Group started to build and integrate its business, we have established our core strategy to develop and publish high-quality PC and console F2P online games for players around the world, and have been committed to the same development direction throughout the years. The business model of offering F2P online games does not lesson our pursuit of and investment in game quality. Recognition and affirmation from players are our highest goal. Combining our experience in operating Warframe globally over the years, and our high-caliber game design team in China which has intensive experiences in bringing fun elements through social interactions in video games and commercialisation, the Group assembled a comprehensive development and operation system applicable to the F2P online gaming market worldwide, in order to continuously develop new hits. Our views on the PC and console F2P market have been accurate. From the perspective of current market size, the blue ocean still prevails in the gaming market, especially in the console market. The industry development these years basically coincided with our prediction three years ago. We are gratified that a few F2P online games developed by the western development teams have become massive hits, bustling the market and cultivating the consumption habits of Western players for free online games.
Meanwhile, I have spoken publicly on occasions about the Group’s strategy of transforming successful PC or console games into mobile version. Although we are not a mobile game developer and our strengths lay on PC and console properties, we embrace mobile games. The portability of mobile devices attracted an immense number of players, turning it into the biggest gaming platform in terms of both the number of users and revenue. Our strategy is to integrate the proven successful products on PC and consoles to mobile devices to provide a cross-platform gaming experience for our users, in order to leverage our own strengths while maximising the success rate of new products at the same time. We are expediting the strategic layout in this aspect.
...due to the size and scale of development work related to Empyrean, a milestone content update for Warframe, the update cadence was temporarily affected and less new game content was released during the reporting period. Nevertheless, the Company believes that Warframe demonstrates a strong edge in the highly competitive gaming market. As the game will remain a popular F2P online game, the abovementioned factors are likely to be fleeting. Meanwhile, the management is proactively responding to the above hindrances. On one hand, the Group increased the frequency of its game updates, and further optimised the marketing channel and direction to boost product exposure. On the other hand, the Group was preparing to expand Warframe to more platforms, such as the next-generation consoles and other devices, to hedge the risk of contracting new users on consoles. The Group is confident that Warframe will enter into a new stage of development, after overcoming these temporary setbacks.
Looking ahead to 2020, content updates for Warframe in the story quest, The New War and another open world are planned to be launched in 2020. Besides, we will have further content updates of Empyrean, and will optimise the beginner guidance process and beginner’s level. 2020 will be another prospering year for Warframe, and more plans will be announced to players in TennoCon in July 2020.