Monday, August 04, 2014

Alibaba/Kabam Joint Persuit In Global Domination

Alibaba, the online retail giant that rivals Amazon in Asia and has crept into Europe and North America by offering wholesale prices for a deluge of products, is jumping into gaming by investing in Kabam. The game company has had fast, and steady growth over the past two years, and Alibaba wants to market the company alongside their mobile gaming products. In return, they get a piece of the ad revenue.

Kabam has made a number of spin-off games, such as Fast & Furious 6: The Game, and The Hobbit: Kingdoms of Middle-Earth with the free-to-play model. And really, should be be surprised? Amazon has a plethora that they advertise for their Kindle tablet and phone. GameStop has purchased a few mobile game companies to provide more content to customers (though that sector has been floundering since GS hasn't developed a stable model for sales yet). Alibaba investing in a game company for mobile content is expected, and will easily generate more revenue. It also give Kabam an avenue to distribute it's games in China, a market now being coveted by game developers as the console ban is removed. Being tied in with Alibaba, Kabam may nto have to adhere as strictly to China's laws as other companies BECAUSE of Alibaba's presence in China's economy.


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