Bilibili CEO Chen Rui Takes Over Games Business

Shanghai-based video streaming platform Bilibili reportedly sent an internal email on November 4 regarding forthcoming adjustments to its games business unit. Related divisions will now report directly to CEO Chen Rui, with the aim of “further strengthening the games business and implementing the company’s game business strategy of ‘Self-Development and Global Distribution’.”

According to the email, oversight of seven Bilibili game-related divisions have been adjusted from Zhang Feng, Senior Vice President of the company, to Chen. Zhang will be transferred to manage other units within the company.

Bilibili‘s unaudited financial reports show that although operating income of the 2022 fiscal year increased by 18.66% year-on-year to 9.963 billion yuan, the net profit attributable to ordinary shareholders of the parent company was -4.289 billion yuan, down 111.89% year-on-year. In the second quarter, Bilibili achieved revenue of 4.9 billion yuan, an increase of 9.2% over the same period in 2021, but a decrease of 2.87% from the previous month.

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Revenue of Bilibili‘s mobile games business in the second quarter reached 1.05 billion yuan, while the figure in the same period last year was 1.233 billion yuan. The report stated that “the decrease was mainly due to the lack of popular new exclusive games in the first half of this year.” As Bilibili‘s second-most popular section, activity in the game field also dropped significantly.

In the past, Bilibili‘s leading source of game revenue came from titles that were exclusively operated by the platform itself. Limited by the time needed for game development and a dependence on operating channels, this mode was not conducive to the self-growth and long-term development of the platform. “Quantum Maki: Innovator” launched this year received a mediocre market response.

Bilibili is now investing in self-developed games. In the first half of this year, although there has been a lack of new exclusive games, it released the self-developed game “Artery Gear: Fusion” for overseas markets. Revenue from self-developed games has reached 5% of its total game revenue, showing a positive trend. Bilibili has now obtained four new game approval certificates in China, and six games will be launched in overseas markets, including two self-developed games.

According to statistics by Youfan Research, as of October 2022, Bilibili had made at least 47 investments in the gaming field, including 43 investment enterprises, second only to Tencent (189) and NetEase (46), although the true figures might be even higher.