Tencent and NetEase are fiercely competing during the Spring Festival.

Author | Huang Yu

Editor | Zhang Xiaoling

"Back in my hometown, fireworks are still banned this year. I watched the New Year's Eve fireworks show on 'Dream Star' with my sister, and it was quite atmospheric." As a game enthusiast, Wang Li, a post-95s (pseudonym), abandoned "King of Glory" during this Spring Festival holiday and started playing "Dream Star".

Similar to Wang Li, this game has also become an important space for entertainment and interaction for many young people during the Spring Festival.

During its first Spring Festival season since its launch, "Dream Star" is going all out, hoping to stage a come-from-behind victory once again. Of course, as the defender, NetEase's "Egg Party" is not willing to be outdone and is fully prepared for the challenge.

The marketing promotions during the Spring Festival are just a microcosm of the marketing battle between "Dream Star" and "Egg Party". Following the battle of chicken-eating games, TENCENT and NetEase are once again engaging in a fierce battle on the gaming battlefield, with both sides pushing each other relentlessly and refusing to give in.

Both TENCENT and NetEase want to emerge as the ultimate winners in this battle. If TENCENT wins, it not only means further solidifying its position as the game king but also determines whether it can establish a leading position in UGC and new social scenes. If NetEase wins, it means challenging TENCENT's position as the game king and further stepping into the opponent's social territory.

Some changes that defy previous perceptions are taking place.

Comprehensive Confrontation

The confrontation between "Dream Star" and "Egg Party" during the Spring Festival season is comprehensive.

First of all, as party games in the most social scene of the Spring Festival, both "Dream Star" and "Egg Party" have put effort into creating a festive and social atmosphere to fully unleash the casual and social attributes of the games.

Wang Li expressed that the most profound feeling is the strong New Year atmosphere in the Dream Square, with scenes such as riding dragons, New Year stalls, and fireworks shows, creating a strong sense of interactive experience.

Similarly, the Egg Square also has many New Year-themed scene settings. In addition to the fireworks show, there are activities such as making dumplings and collecting blessings. It even held the 2024 Egg Party Spring Festival Gala performed by the eggs on New Year's Eve, continuously broadcasted in the game during the Spring Festival.

In the game, both "Dream Star" and "Egg Party" have many maps themed around the Year of the Dragon, combining New Year elements with the maps, not only enhancing the festive atmosphere but also adding a lot of fun.

In addition to the festive atmosphere, both games have offered substantial benefits.

This time, "Dream Star" went all out, not only giving away game coins, QQ music and TENCENT video membership cards, as well as vouchers for brands like Jiweibao and Haidilao, but also distributing 100 million yuan in cash as red envelopes, with the highest amount reaching 188 yuan.

A player told Wall Street News that after grabbing a round of red envelopes on WeChat, they went to Dream Star on New Year's Eve to draw some cash red envelopes. The largest amount they drew was 8.88 yuan, and they continued to draw cash red envelopes for a few days after the New Year.

Egg Party also has its own strategies. During the Spring Festival, it also launched the "Collect 5 Eggs to Share 100 Million" activity, easily giving out 8.8 yuan red envelopes. Both companies have collaborated with well-known IPs to give away free skins. Egg Party collaborated with Boonie Bears, while Dream Star collaborated with Ultraman.

Meanwhile, the battle between the two has spread from the game to the real world.

Danzai has enlisted Yang Zi as their spokesperson, while Yuanmeng has brought in Fan Chengcheng, Song Yuqi, and Wei Daxun. Yuanmeng appeared on the CCTV New Year's Gala, while Danzai not only appeared on the CCTV Online Spring Festival Gala and the Henan Spring Festival Gala but also hosted a Spring Festival Gala within the game.

It is reported that from February 5th to 18th, Danzai will hold a total of 43 New Year temple fairs in 34 cities across the country.

In addition, according to Wall Street News, many boutique stores nationwide are now selling Danzai peripheral products. Yuanmeng has also started to launch various offline co-branded products, including "Star Treasure" plush toys and collectible cards.

Currently, it seems that Danzai, which has been in operation for over a year, has the upper hand in the online and offline integration.

It is worth mentioning that in order to attract more new users and catch up on the progress during the Spring Festival, Yuanmeng has integrated QQ and WeChat. By developing the function of "Scan to Play Together" with QQ & WeChat friends, Yuanmeng has removed the barriers between the two service areas, further lowering the threshold for player interaction.

During the Spring Festival, which is an important window for game promotion and attracting new players, party games with stronger social attributes undoubtedly want to seize the opportunity. Internet analyst Zhang Shule expressed to Wall Street News that the leisure attributes during the Spring Festival are more prominent than other holidays, with more gatherings, making it easier for party games to tap into this market.

The New Era of Games

As a veteran game company, NetEase understands the importance of the Spring Festival season. When Danzai was launched in May 2022, it initially received a lukewarm response. It gradually gained popularity through UGC gameplay and eventually became a hit during the first Spring Festival after the epidemic, becoming the dark horse of the year.

After a high-profile start, Tencent's "Yuanmeng Star" entered the Spring Festival season, hoping to further expand its success. This is a crucial test for them.

However, Yuanmeng's offensive has not generated enough momentum and has not yet replicated Tencent's history of coming from behind. The top spot in the domestic party game market still belongs to "Danzai Party".

According to data from DotDot, as of February 15th, on the App Store in China, "Danzai Party" had approximately 6.02 million downloads in the past 30 days, while "Yuanmeng Star" had 3.76 million downloads. The former generated total revenue of about 139 million yuan in the past 30 days, while the latter's total revenue was around 57.25 million yuan.

In addition, NetEase officially announced that on New Year's Eve, the DAU (Daily Active Users) of "Danzai Party" exceeded 40 million, while Yuanmeng Star has not yet disclosed any data for the Spring Festival period.

It seems that "Danzai Party" still maintains a clear first-mover advantage.

"At present, Yuanmeng is following in the footsteps of Danzai, with no signs of surpassing it," Zhang Shule said. After "Yuanmeng Star" bid farewell to the "new game dividend" and "freshness," the competition between Yuanmeng and Danzai has entered a protracted phase.

Currently, although Yuanmeng and Danzai have similarities in gameplay, they have transitioned from initial direct competition to differentiated competition and the development of their respective IP ecosystems. The DataEye Research Institute pointed out that, considering the current stalemate and the differentiation of player groups, it is judged that within six months, two games may be in a situation of "having differentiation and being able to coexist" - "Dream of Elements" targets young adults, while "Egg Baby" leans towards a younger audience; "Dream of Elements" is more moderate, while "Egg Baby" is more casual; the party track will inevitably expand.

Next, the marketing battle between the two sides will intensify, testing not only products, placements, and funds, but also the "internal factors" of both sides that may affect the situation.

For both TENCENT and NetEase, this is a battle that cannot be lost.

As the hit party game of 2023, "Egg Baby Party" has become the game with the highest DAU in NetEase's history, seizing the social gaming scene of post-2000s. NetEase disclosed data shows that as of December 8, 2023, "Egg Baby Party" has over 500 million registered users and hundreds of millions of UGC maps.

"Egg Baby Party" is not only a major breakthrough for NetEase in the gaming business, but also the flagship game of NetEase today. NetEase hopes to prove its strength in social gaming and UGC through this.

For TENCENT, they also hope to usher in the next generation of national games after "King of Glory" and "Peace Elite". "Dream of Elements" not only carries TENCENT's hope of creating new hit games, but is also an important platform for seizing new social territories in the future, a strategic presence at the TENCENT group level.

Thinking back to the "Battle Royale" of the past, the gaming battlefield has not seen two games that can be as hot for a long time. No one can accurately predict the final outcome of this war.

NetEase, the veteran game giant in China, is unwilling to be ranked below TENCENT for a long time; and TENCENT, naturally, will not give up its position as the leader in gaming and social networking.

The whole internet is watching, and with the party game as the backdrop, how will the war between these two Chinese internet giants evolve.