Tencent Holdings (OTC:TCEHY) (HK:0700) shares are in focus today after the Chinese tech giant set May 21 as a release date for 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 for Tencent
For Tencent, the potential success of DnF Mobile could be the harbinger of a change of fortunes for 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 for 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 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, alongside an average TCEHY price target of $42.80.
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