Why Did Tencent Shift Its Focus Away from Big Budget Games? as Undawn flops

By Deepika Mar 23, 2024 #Tencent #Undawn #Will Smith

In an unexpected twist of events, Undawn, the open-world zombie survival shooter that had Oscar-winning actor Will Smith playing a major role, has turned out to be a disappointing revenue generator for its developer, the Chinese conglomerate Tencent. If this is the first time you’re hearing about this game, you’re not alone. Despite its June 2023 launch on both mobile and PC platforms, Undawn seemed to have escaped the radar of gamers around the globe.

A Hollywood Star’s Endorsement Goes Unnoticed

Even the inclusion of Will Smith, a multifaceted actor known for his roles in action-packed films and compelling dramas, did not manage to create a buzz significant enough to propel the game to success, even though will smith was in a zombie movie ‘i am legend‘ and is associated with the genre. Smith introduced his character, Trey Jones, a survivor guiding players through a world devastated by global calamity, on his official YouTube channel in May 2023. This effort, however, did little to attract a significant player base, with peak player numbers barely scratching the surface of anticipated targets.

Marketing Missteps and Title Turmoil

One of the cited reasons for Undawn‘s underperformance is its lack of effective marketing. Many gamers have taken to social media to express their surprise at the game’s existence, signaling a clear failure in the game’s promotional activities. Additionally, criticisms have been leveled at the game’s name, Undawn, for being too generic and easily confused with other zombie-themed games, suggesting that a more distinctive title might have benefitted its market presence.

Financial Fallout

The financial implications for Tencent are not to be underestimated. With a reported investment of nearly 1 billion yuan (around $140 million) and over 300 developers dedicated to the project, the game’s dismal revenue of $287,000 within eight months of release is particularly jarring. This represents a tiny fraction of its budget and signals a significant loss for the company on this venture.

Tencent’s Strategic Shift

In the wake of Undawn‘s failure, Tencent has hinted at a major strategic pivot. The company’s chief strategy officer, James Mitchell, has indicated a move away from large-scale, high-budget games, favoring instead a focus on casual party games and anime RPGs akin to Genshin Impact. This shift is reflected in the company’s recent operational decisions, including delays and project reassignments affecting titles like Assassin’s Creed Jade.

The Celebrity Video Game Curse?

Interestingly, Undawn is not the first celebrity-endorsed video game to meet with less-than-stellar results. The gaming world has seen its fair share of such disappointments, calling into question the effectiveness of leveraging star power in video game marketing. As Tencent recalibrates its approach to game development and marketing, the industry will be watching to see if this marks a wider trend away from high-profile endorsements and blockbuster budgets.

A discernible lesson from Undawn‘s commercial stumble is perhaps the realization that not even the glittering allure of Hollywood talent can guarantee success in the highly competitive and unpredictable gaming industry. Tencent’s future endeavors will undoubtedly be recalibrated with this hard-learned lesson in mind, as the company navigates its way through an evolving market landscape.

By Deepika

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