Alibaba, Tencent Spark Cloud Computing Showdown With Server Offers for 'Palworld,' a Hit Game Compared to 'Pokémon With Guns
Portfolio Pulse from Anusuya Lahiri
Alibaba Group Holding Limited (NYSE:BABA) and Tencent Holdings Ltd (OTC:TCEHY) are competing in the cloud computing market by offering server plans for 'Palworld,' a game developed by Pocketpair that sold over 8 million copies in less than six days. Despite Steam's inaccessibility in China, 'Palworld' has gained popularity there, accessible via VPNs and on Microsoft Corp's (NASDAQ:MSFT) Xbox. This competition highlights the intense rivalry between Alibaba and Tencent in China's cloud market.
February 02, 2024 | 1:58 pm
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POSITIVE IMPACT
Alibaba's involvement in offering server plans for 'Palworld' players in China could enhance its position in the cloud computing market, potentially attracting more users and increasing its service revenue.
Alibaba's strategic move to offer server plans for 'Palworld' directly targets the gaming community, potentially increasing its cloud computing market share and service revenue in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Microsoft's Xbox platform hosting 'Palworld' in China, where Steam is inaccessible, highlights its strategic position in the gaming market, potentially increasing its user base and strengthening its gaming ecosystem.
Microsoft's ability to offer 'Palworld' on Xbox in China, bypassing Steam's inaccessibility, could attract more users to its gaming platform, strengthening its ecosystem and potentially increasing its market presence.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Tencent's competitive server offerings for 'Palworld' in China could strengthen its cloud services by attracting a gaming audience, potentially increasing its market share and revenue in the cloud sector.
By offering competitively priced server plans for 'Palworld,' Tencent is likely to attract gamers to its cloud services, which could increase its market share and revenue in the competitive cloud computing market.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80