TikTok’s move into gaming is a natural progression, says GlobalData

Charlotte Newton, Analyst in the Thematic Intelligence team at GlobalData, a leading data and analytics company, offers her view:

“Tiktok is just one of several global social media companies entering the gaming market and this step is a natural progression for the company. Over the past decade, gaming has become a mainstream source of entertainment for audiences and participants worldwide, so TikTok is aiming to become a one-stop shop within this booming industry.

“TikTok’s new games channel makes gaming a more central feature on its platform and more accessible to users. It will also provide revenue opportunities through in-game ads and purchases.

“TikTok is rightly focusing on mobile gaming, a must-have capability for all games companies today. Mobile gaming is bigger than the console and PC gaming markets combined. Supported by new games and esports, mobile gaming will account for 58% of the $470 billion video games market by 2030, according to GlobalData forecasts. Thus, gaming is a lucrative opportunity for TikTok to expand its userbase and add new revenue channels for long-term growth.”

Rupantar Guha, Principal Analyst in the Thematic Intelligence team at GlobalData says:

“TikTok’s parent, ByteDance, has established a stronghold in the gaming sector in a short time with its acquisitions and massive userbase. Reportedly, 90% of mobile gamers on TikTok watch gaming content, with 33% stating a specific interest in esports. ByteDance will push harder in the gaming sector in the next two years, challenging Tencent and NetEase in the Chinese market and expanding its footprint globally.

“TikTok is well positioned to benefit as gaming and social media continue to overlap. Although some big companies such as Snap and Google are cutting down on gaming initiatives due to intense competition, TikTok’s widespread popularity in China, increasing influence globally, and ability to compete directly with Meta make it a likely long-term winner.”