Codemasters' new partnership provides entry to lucrative Chinese mobile gaming market
Award-winning British video game developer has announced a new joint development agreement with NetEase, Inc., a leading Chinese internet and online game services provider. Through this partnership, the companies aim to develop and release a new game for the global market.
As per the agreement’s terms, NetEase will provide an internal mobile development team for the game, managing all operational and publishing activities globally.
Chief Executive of Codemasters Frank Sagnier identified this arrangement as a main asset of the partnership, commenting “Global mobile expansion is a key part of our strategy. We believe that a partnership with a world leading developer and publisher such as NetEase will accelerate our growth, particularly in China's world leading mobile game market."
According to Newzoo.com, China’s expansive mobile game market generated $23 billion in 2018-- which accounted for over 62% of the total games market revenue. The industry is thriving; as revenues continue to rise year on year, experts in the field expect the number to reach $42 billion by 2022.
Codemasters has agreed to support game development with its proprietary technology, resources, and existing game assets.
Over the next three years, Codemasters is to receive a minimum of $8 million in game revenue, beginning with an expected $4 million in the current financial year, ending March 31st 2019. Once NetEase has recouped these $8 million, any profit generated by the game, its lifetime revenue, will be shared between the partners.
Following the news, Codemasters’ Board of Directors now believes its Adjusted EBITDA for this financial year will be “ahead of expectations”.
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