(Yicai Global) May 16 -- Despite some clouds over the gaming industry recently, it has the potential to grow by four or five times in the near future, Ma Xiaoyi, senior vice president of Tencent Holdings, said at a game release conference yesterday.

Tencent Games released more than 40 products yesterday, down from the 60 it released in 2021 and its revenue slipped last year, but Ma expressed long-term optimism, saying fortunes will turn “when the next product that really changes the industry turns up.” 

The era of relying on the demographic dividend to drive the market has passed, and it is time to seek opportunities in different categories, Ma said, adding that the Shenzhen-based company has started releasing some products based on real-life scenarios.

For instance, Tencent Games has partnered with Zhuhai Xiangyi Aviation Technology, a subsidiary of Guangzhou-based China Southern Airlines, to create a simulator with authentic scenes and images from the perspective of pilots.  Tencent Holdings’ earnings report for 2022 revealed slowing games revenue last year, both domestically and overseas. Income at Tencent Games fell 2 percent to CNY170.7 billion (USD24.5 billion), with annual revenue in the home market dropping 4 percent to CNY123.9 billion.

Last year, sales and player numbers fell in China’s gaming market for the first time in eight years, according to data from the National Press and Publication Administration. Sales sank 10.3 percent to toaled CNY265.9 billion (USD38.2 billion), while the ranks of gamers dipped 0.3 percent to 664 million. 

Tencent Games’ revenue from overseas markets will account for half of the total in future, Ma predicted. 

Editors: Shi Yi, Tom Litting