Animoca signs Tencent distribution deal for Armies of Dragons in south east Asia

WeChat's the way

Animoca signs Tencent distribution deal for Armies of Dragons in south east Asia

Animoca Brands (ASX: AB1) has signed a deal with Tencent over distribution of its 2014-released tower defense strategy game Armies of Dragons.

Interestingly, given Tencent's dominance in China, the agreement isn't for that territory, however.

Instead it's focused on the fast-developing south east Asian countries.

The one-year deal will result in the game being published via Tencent's WeChat mobile messaging platform in Hong Kong, Indonesia, Malaysia, Singapore and Thailand from November.

Tencent also gains the right of first negotiation to exclusively publish and distribute sequel titles or games substantially similar to Armies of Dragons.

With over 600 million active monthly users, WeChat certainly has strong reach, and Tencent said the platform added 50 million users in Q2 2015.

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David Phan Producer at Relic Entertainment
Just a surface analysis of this deal, but I don't see what the significant benefit for either side is. Peeking at AoD's gross performance in App Annie, it's non-existent. Having TenCent distribute the game via Wechat isn't likely going to help this game become revenue positive if it couldn't show up on the radar in the West.

I'm guessing this is one of those deals where Animoca wants to get knowledge and a foothold in the Asian markets and Tencent wants that first negotiation right for future Animoca products because there's no way this deal is about making AoD an ROI positive title based on it's past performance.
Andreas Vasen CEO at Machineworks
Playing it safe.