THE PROFITABILITY OF THE VIRTUAL GAMES MARKET: A CASE STUDY OF TENCENT HOLDINGS COMPANY

Abstract

This study consists of a study about game market, which is evolving constantly. From this point of view, this article sought to show the huge growth in this area, considering that it moved about US$159 billion in 2019. Initially, it was performed a presentation about the beginning of virtual games, explaining its origin and its historical systematization. From this understanding, it was shown analysis from accounting demonstrations with the aim to understand whether it is feasible to invest in this area for corporations. The proposal was to answer the following questions: is it worth investing in this area? Is the level of profitability from the stablishment TECENT HOLDINGS LIMITED attractive? To answer them, it was used a descriptive and quantitative study through financial indicators from Tencent company. The choice for this stablishment is due to the enterprise be acknowledged as “mother” of virtual games business around the world. From its financial datas among years of 2016 and 2019, making available in itself website, it was possible to calculate, through rates of return, if this company has a good financial return, so being possible to reach a positive result for an investment in this area. Therefore, it can be concluded that market games is highly rentable and promising, being possible to invest as in small companies from this universe, such as start-ups, as in those that have publicly traded.