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With a $330M fund, Youzu is going global
Key insights
6 takeaways- 01Youzu Interactive has launched a $330 million investment fund to provide capital, R&D support, and distribution to foreign developers seeking entry into the Chinese market.
- 02The company serves as a strategic gateway to China’s fragmented Android ecosystem, which requires navigating over 60 distinct distribution channels and various social platforms in the absence of Google Play.
- 03Youzu’s operational model focuses on data-driven localization, exemplified by the title 'Three Kingdoms,' which generated over $100 million in revenue within its first 20 days.
- 04Youzu leverages its local market expertise to adapt games for Chinese players, who typically prioritize social competition and status-driven gameplay mechanics.
- 05The 'Three Kingdoms' title demonstrated strong monetization potential with a 60-day lifetime value (LTV) of $15 per user.
- 06The firm facilitates global expansion by offering intellectual property exchange, specifically citing the 'Three-Body Problem' franchise as a key asset for co-development partnerships.
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Transcript
I'm actions vice president of you to be interactive head of domestic game publishing thank you for inviting us to share our experience and passion for gaming industry firstly I'd like to give a brief introduction about YouTube usually the Chinese leading game company specializing development development and the publishing with a veteran Andy and the publishing team we have successfully developed and published 20 games over 100 countries and the region's our game league Avengers reach monthly revenue of 25 million dollars and was honored to
receive the Facebook's past new game award of 2014 this year our new mobile new mobile game use of Three Kingdoms has remained the top ten games in Chinese app store since it launched with a with our successful experience we want to act like a bridge to support and have high quality games abroad to enter Chinese market sharing the benefit of the rapid growth together with panels all over the world now you may ask me there are so many game companies in China why should we choose you well you just deserve the best as I mentioned before usually is not only a publishing game company we do our research and the development as you do therefore we have a great understanding of how to make the most of the game by refinement operation
which is through planning on activities and the guiding ind adjustment and renewal based on user research from monitoring and data analysis for heiio TV for example three kingdoms LTV of seven days reached five dollars and fifteen dollars for the 60 days fifteen dollars second delay as we all know and Joe mobile facility cover seventy percent of Chinese market the angel application story in China has higher revenue than the App Store however the angel the Android ecosystem in China is rather intense sorry sorry is totally a jungle very complicated easily lost in China we don't have Google Play but we
have tension by to see who you see and the shaman ali khan the mainstream and your channel are more than 60 ones the computational maunder first year and reach a nose is running hence sometimes it even request game distributors to sign exclusive agreement with with our strong bond with over 60 andrew channels and over 140 social networking platform in China we can easily received highly recommendation from almost all the core platform when we launched a new game like three kingdoms it reached a hundred of millions revenue in their first 20 days and always the help always the help of active promotion of our fellow platform panels so delay since she also
is another structure of global publishing we know that the localization capability is the vital element when entering a new market we can help the foreign games localization in China efficiently in two aspects first we can help you access the three giant operators cmcc china unicom and china telecom getting through the channel of disbursement secondary we know Chinese game players there is a huge difference between Chinese players and the players in Europe and America the Chinese players enjoy the crossing of rule and that they have a strong tendency to show off in games our ind and the operation team know how to keep the balance of strong playability and up value through gameplay design last but not least when it comes to marketing and
promotion we know how to create all topics shipping brand images for chinese market we have signed superstar John hook as the spokesman from Three Kingdoms a series of online and offline of the advertisement benefited users and precision rectally only for two months we have got six million users and for mailing iOS users are 16 million Android users under 4 million iOS users sincerely you to welcome all kinds of cooperation in publishing IP or investment for publishing we are more than like we are more than happy to be a platform to bring great games to global since we have our R&D teams as well we can directly develop based on the source code of your offer could develop co-publishing as well in as for IP
cooperation we have a large amount of excellent type in hand the three-body problem which recently received 2015 hugo award for best novel yes the is one of the anticipated IP we've got if you have great IP original ideas or indeed Kings join us we welcome all kinds of cooperation in the investment with with to billing no no no with 300 with 300 million dollars of initial capital we set up an entrepreneurial platform ready to invest in potential and the team's award board providing capital and resource support for excellent young team in the a
sparing no effort to explore the next a prominent company usually in Chinese means usually in Chinese means game tribe the common dream of creating and sharing simple joy bounders against for us games was more like experience their products sincerely I would like to give send invitations to all of you welcome to China welcome to YouTube to be one of the member of the game tribes thank you if you if you have any questions you can come to our booth just outside the door thank you very much
Summary
Youzu Interactive is positioning itself as a strategic gateway for Western developers seeking to penetrate the complex Chinese gaming market. By leveraging its established infrastructure as both a developer and publisher, the company aims to bridge the gap between international studios and Chinese consumers. The firm’s primary value proposition centers on its deep expertise in navigating China’s fragmented Android ecosystem, which lacks a centralized Google Play store and instead relies on over 60 distinct distribution channels and various social networking platforms.
The company’s operational success is anchored in data-driven refinement and localized marketing. For instance, its title Three Kingdoms achieved significant performance metrics, including a 60-day lifetime value of $15 and revenue exceeding $100 million within its first 20 days. Youzu emphasizes its ability to manage the nuances of the Chinese player base, who often prioritize social competition and status-driven gameplay. To support this, the company provides comprehensive localization services, including integration with major telecommunications operators and the execution of high-profile marketing campaigns, such as utilizing celebrity spokespeople to drive user acquisition.
To accelerate its global expansion, Youzu has established a $330 million investment fund dedicated to supporting entrepreneurial teams and fostering co-development partnerships. This capital is intended to provide resources for promising developers while facilitating the exchange of intellectual property, such as the Three-Body Problem franchise. By offering a combination of financial backing, technical R&D support, and established distribution networks, Youzu seeks to cultivate a collaborative ecosystem that simplifies the entry process for foreign games into the Chinese market while simultaneously expanding its own international footprint.
