Investing.com– Bernstein analysts hail December 2024 as a transformative moment for China’s video game developers, highlighting the global successes of Tencent Holdings (OTC:) Ltd’s ( HK:) ‘Path of Exile 2’ and NetEase Inc’s (HK:) ‘Marvel Rivals’.

These games represent a big step forward in China’s push to capture a bigger share of the $165 billion global gaming market beyond the $45 billion domestic sector, analysts said in a note

Tencent’s ‘Path of Exile 2’ has emerged as a formidable rival to Blizzard’s ‘Diablo II’, boasting polished gameplay and a dedicated fan base. Early access alone saw more than a million players spend $30–$60, a testament to its strong appeal, according to Bernstein analysts.

Meanwhile, NetEase’s (NASDAQ:) ‘Marvel Rivals’ broke records, attracting 20 million players shortly after launch. This success marks a strategic pivot for NetEase, which is now targeting a user base comparable to the 40 million achieved by its first hit, ‘Naraka Bladepoint’.

Both titles gained significant traction on platforms such as Steam, with peak concurrent users reaching 579,000 for ‘Path of Exile 2’ and 481,000 for ‘Marvel Rivals’. Bernstein analysts emphasize that these games are well-positioned as live-service titles, which will generate revenue for years to come.

The success of these launches also highlights the strategic advantages of Chinese developers, namely cost-efficient R&D, innovative intellectual property, and freedom from controversial debates in Western gaming culture.

Bernstein maintained “Outperform” ratings on Tencent and NetEase, citing their ability to challenge Western competitors such as Blizzard and Electronic Arts Inc (NASDAQ:) in the lucrative live-service gaming space.