ๅฏน่ฏ่ถฃๅคดๆกๆŠ•่ต„ไบบๆฒ™็ƒจ๏ผšโ€œ็ฒพ่‹ฑโ€ๅฏนไธ–็•Œ็š„็†่งฃๅ’Œ็Žฐๅฎžๆœ‰่„ฑ่Š‚ โ€“ Tencent Tech

What happened: According to people close to Nasdaq-listed news and content distribution platform Qutoutiao, the Tencent-backed company is recruiting staff for a new gaming team.  Qutoutiao, for the first phase of the gaming plan, would focus on WeChat games. Visual content such as photos and short videos will also receive more strategic attention from Qutoutiao in the future. During an interview with Tencent Tech, an early investor of Qutoutiao said the company will still target lower-tier cities and areas.

Why itโ€™s important: Qutoutiao, with Tencent as an investor, will see channel advantage for its games targeting WeChat platform. However, with ByteDanceโ€™s Jinri Toutiao and other information platform already fighting in the market, and gaming industry in innovation bottlenecks and macro environment turbulences, Qutoutiaoโ€™s path to substantial commercial performance breakthroughs is tough. Meanwhile, Qutoutiaoโ€™s strategy eyeing less-developed internet markets in lower-tier cities and areas is similar to group-buy Pinduoduoโ€™s โ€“ modifying business models and digital projects already successful in larger cities and using them in non-cultivated regions for new market opportunities.

Runhua Zhao is a technology reporter based in Beijing. Connect with her via email: runhuazhao@ovau.ip-ddns.com

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