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Rumor: Qihoo 360 Sweetens Mobile Game Revenue Share

Sina Tech, 1/23/14

According to an insider at Chinese internet firm Qihoo 360 (NYSE: QIHU), the company will adjust the revenue sharing policies on its mobile game distribution platform. According to the new policy, Qihoo will not deduct any commissions for games that earn less than RMB 500,000 in a 3-month period. The new policy is intended to attract small and medium-sized game developers to test their games on Qihoo's mobile game platform, increasing the chance that hit games launch first on Qihoo.

Jiang Zuwang, Director of Qihoo's mobile game center, previously revealed that Qihoo is planning to adjust its mobile game revenue sharing policies to ensure that the company's developer support system stays ahead of rival internet firms Alibaba Group and Tencent (0700.HK).

Editor's Note: Alibaba released its mobile game platform on January 8, announcing that the company would not charge single-player mobile game developers to register games on the platform, and stating that game developers will retain 70% of revenue from jointly-operated games on the platform. Following Alibaba's announcement, Tencent revealed that the company will allow app developers to keep 70% of revenue from non-exclusively licensed apps on its unified Myapp distribution platform. Tencent is also rumored to be planning a mobile game distribution alliance with a number of platforms excluding Qihoo. Chinese internet company Baidu's (Nasdaq: BIDU) app distribution subsidiaries 91 Assistant and Duoku have reportedly joined the alliance. For more background on this topic, please see "Tencent Unifies App Distribution under Myapp" MD 1/17/14 issue, "Alibaba Takes Aim at Tencent with Mobile Gaming Platform" MD 1/08/14 issue and "Rumor: Baidu Joins Tencent's Mobile Game Distribution Alliance" MD 1/06/14 issue.

To help gaming enterprises and industry analysts gain a comprehensive overview of China's major mobile game developers, publishers, distribution platforms, mobile games, and mobile game industry M&A deals and partnerships, Marbridge has recently released its Q4 2013 Chinese Mobile Gaming Industry Matrix.

Keywords: mobile gaming wireless Qihoo 360 QIHU Jiang Zuwang revenue share

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