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Chinese mobile games are gaining ground in the US – TechCrunch

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Over the past year, the coronavirus crisis has spurred app usage in the United States as people stay indoors to limit contact with others. Mobile games particularly have enjoyed a boom, and among them, games from Chinese studios are gaining popularity.

Games released on the U.S. App Store and Google Play Store raked in a total of $5.8 billion in revenue during the fourth quarter, jumping 34.3% from a year before and accounting for over a quarter of the world’s mobile gaming revenues, according to a new report from market research firm Sensor Tower.

In the quarter, Chinese titles contributed as much as 20% of the mobile gaming revenues in the U.S. That effectively made China the largest importer of mobile games in the U.S., thanks to a few blockbuster titles. Chinese publishers claimed 21 spots among the 100 top-grossing games in the period and collectively generated $780 million in revenues in the U.S., the world’s largest mobile gaming market, more than triple the amount from two years before.

Occupying the top rank are familiar Chinese titles such as the first-person shooter game Call of Duty, a collaboration between Tencent and Activision, as well as Tencent’s PlayerUnknown’s Battlegrounds. But smaller Chinese studios are also quickly infiltrating the U.S. market.

Mihoyo, a little-known studio outside China, has been turning heads in the domestic gaming industry with its hit game Genshin Impact, a role-playing action game featuring anime-style characters. It was the sixth-most highest-grossing mobile game in the U.S. during Q4, racking up over $100 million in revenues in the period.

Most notable is that Mihoyo has been an independent studio since its inception in 2011. Unlike many gaming startups that covet fundings from industry titans like Tencent, Mihoyo has so far raised only a modest amount from its early days. It also stirred up controversy for skipping major distributors like Tencent and phone vendors Huawei and Xiaomi, releasing Genshin Impact on Bilibili, a popular video site amongst Chinese youngsters, and games downloading platform Taptap.

Magic Tavern, the developer behind the puzzle game Project Makeover, one of the most installed mobile games in the U.S. since late last year, is another lesser-known studio. Founded by a team of Tsinghua graduates with offices around the world, Magic Tavern is celebrated as one of the first studios with roots in China to have gained ground in the American casual gaming market. KKR-backed gaming company AppLovin is a strategic investor in Magic Tavern.

Other popular games in the U.S. also have links to China, if not directly owned by a Chinese company. Shortcut Run and Roof Nails are works from the French casual game maker Voodoo, which received a minority investment from Tencent last year. Tencent is also a strategic investor in Roblox, the gaming platform oriented to young gamers and slated for an IPO in the coming weeks.

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Facebook announces new audio products – TechCrunch

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Facebook reveals its Clubhouse competitor, Parler will return to Apple’s App Store and a helicopter flies on Mars. This is your Daily Crunch for April 19, 2021.

The big story: Facebook announces new audio products

Yes, these products include new Clubhouse-style Live Audio Rooms, as well as the ability for podcasters to share long-form audio, some new Spotify integration and a shorter format called Soundbites. Facebook is starting off by testing Live Audio Rooms in Facebook Groups.

“When we launched video rooms earlier last year, groups and communities were one of the bigger areas where that took off,” CEO Mark Zuckerberg said in an interview with Platformer. “So, I think around audio, just given how much more accessible it is, that’ll be a pretty exciting area as well.”

The tech giants

Apple confirms it will allow Parler to return to App Store — Apple says that after Parler’s proposed updates, it should be approved for reinstatement to the App Store.

Consumer agency warns against Peloton Tread+ use, as company pushes back — The U.S. Consumer Product Safety Commission is warning consumers to stop using the Tread+.

Xbox Cloud Gaming beta starts rolling out on iOS and PC this week — The service has been available in beta for Android users since last year, but it has been slow to expand to other platforms.

Startups, funding and venture capital

Clubhouse closes an undisclosed $4B valuation Series C round, as tech giants’ clones circle — We don’t know how much it raised, but it looks like Clubhouse has tripled the valuation it attained in January.

Alan raises $220M for its health insurance and healthcare super app — The company now covers 160,000 people.

General Motors leads $139M investment into lithium-metal battery developer, SES — GM is the latest big automaker to pick a horse in the race to develop better batteries for electric vehicles.

Advice and analysis from Extra Crunch

The Klaviyo EC-1 — Klaviyo may not be a household name yet, but in many ways, this startup has become the standard by which email marketers are judged.

European VC soars in Q1 — The blockbuster first quarter was not just an American affair.

Outdoor startups see supercharged growth during COVID-19 era — Startups that provide services like camper vans, private campsites and trail-finding apps became relevant to millions of new users when COVID-19 shut down indoor recreation.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Everything else

NASA makes history by flying a helicopter on Mars for the first time — This is a major achievement, in no small part because the atmosphere is so thin on Mars that creating a rotor-powered craft like Ingenuity that can actually produce lift is a huge challenge.

An interview with Andrew Yang — The New York mayoral candidate talks Amazon, cryptocurrency and automation.

Geico admits fraudsters stole customers’ driver’s license numbers for months — The second-largest auto insurer in the U.S. has fixed a security bug that allowed fraudsters to steal customers’ driver’s license numbers from its website.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

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Feels is a new dating app with profiles that look more personal – TechCrunch

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Meet Feels, a new French startup that wants to change how dating apps work. According to the company, scrolling through photos and reading descriptions tend to be a boring experience. Feels want to improve profiles so that navigating the app feels more like watching TikTok videos or browsing stories.

“For the past 10 years, there’s been little innovation in the industry,” co-founder and CEO Daniel Cheaib told me. “The reason why many people uninstall dating apps is that it’s boring. Profiles all look the same and we feel like we’re browsing a catalog.”

In that case, Cheaib is thinking about Tinder, but also other dating apps that feel like Tinder but aren’t exactly Tinder, such as Bumble, Happn, etc.

Feels’ founding team has spent two years iterating on the app to find out what works and what doesn’t. Now that retention metrics are where they’re supposed to be, the company is now ready to launch more widely.

Image Credits: Feels

If you want to show interesting content to your users in a dating app, you have to rethink profiles. Arguably, this has been the most difficult part of the development phase. When you install the app, it takes around 15 minutes to create your profile.

At first, only 30% of new users finished the onboarding process. Now, around 75% of new users reach the end of the signup flow.

So what makes a profile on Feels different? In many ways, a profile looks more like a story, or TikTok posts. Users can record videos, add text and stickers, share photos, answer questions and more.

“When you’re done with the onboarding process, you have consistent profiles with people sharing content about them,” Cheaib said.

Like other dating apps, there are many options when it comes to gender identity — you’re not limited to woman or man. You can then say that you want to see all profiles or just some profiles based on various criteria.

After that, you can look at other profiles. Once again, Feels tries to change the basic interaction of dating apps. Most dating apps require you to swipe left or right, or give a thumbs up or a thumbs down. When you think about it, it’s a binary choice that requires a ton of micro decisions.

Sometimes, you don’t have any strong feelings about someone. Or maybe you just want to go to the next profile. And the fact that you have to triage profiles like this leads to a lot negativity, whether it’s conscious or subconscious — you keep rejecting people, after all.

When you’re looking at a profile on Feels, it fills up your entire screen. Videos start playing, you can see what the person likes and who they are in front of a camera. You can react on some content or you can simply move on by swiping up. There’s no heart or like button.

When the startup thought they finally were going somewhere, they raised a $1.3 million funding round (€1.1 million) from a long list of business angels, such as somebody in Atomico’s business angel program, Blaise Matuidi, Eric Besson, René Ricol, Ricardo Pereira , Yohan Benalouane, Nampalys Mendy, Jean Romain Lhomme, Julien Radic and Jean Michel Chami.

Now, Feels plans to attract new users with organic TikTok posts, some TV ads and more. The company wants to reach one million users by the end of the year with a big focus on France for now. There are 100,000 users right now.

When it comes to monetization, Feels started offering a premium subscription to unlock more features. The company is still iterating on that part.

Feels is just getting started in a crowded and competitive industry. Unlike other companies, Feels has invested heavily in its own product before working on user acquisition and paid installs. It’s an ambitious strategy but it has a lot of potential as it could lead to a truly different dating app.

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Social audio startup Stationhead looks beyond music as it hits 100K monthly active users – TechCrunch

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When I’ve written about Stationhead in the past, I’ve focused on how the startup aims to recapture bring personality and interactivity of a live radio broadcast to streaming music. But CEO Ryan Star said his ambitions are broader now: “We’re going to be the largest social audio platform in the world.”

The startup says it’s growing quickly, with 100,000 monthly active users — a number that’s growing by 65% each month — and 500,000 total users. There are 6,300 hosts on the platform, and they created nearly 2 million live and recorded streams in the first three months of the year.

COO Murray Levison told me that the pandemic has brought more artists to the platform as they look for new ways to reach their fans. For example, Cardi B joined the fan show Bardigangradio last month, prompting 132,000 paid streams of her new single on Apple Music and Spotify during the broadcast. (Stationhead integrates with both music streaming services — when a DJ cues up a song, it’s actually playing through your account.)

At the same time, both Star (who co-founded the company due to his own frustrations as an independent musician) and Levison suggested that playing music is not quite as central to their vision as it used to be. Instead, they said Stationhead is all about live audio broadcasting, with or without music.

From a product perspective, Levison said they’re trying to build “the best broadcasting tools for creators and everybody people to use.” At the same time, he added, “Music is still at the core of what we’ve built. Just like games are to Twitch, music is our social glue.”

Image Credits: Shervin Lainez / Stationhead

While the company emphasizes the live experience (which Levison described as “the core value prop”), Stationhead also supports recording shows for listening later, and apparently 50% of users are listening to both live and recorded shows. It has also been beta testing a tipping feature that will allow broadcasters to monetize their shows.

Of course, you can’t talk about social audio without talking about Clubhouse, which was attracting 2 million active users each week in January, according to CEO Paul Davison. Levison suggested that the buzz around Clubhouse has also benefited Stationhead as potential acquirers and investors get more excited about social audio. And Star argued that the companies are taking very different approaches.

“It’s in the name Clubhouse, it’s exclusive,” Star said. “It’s about social climbing and getting closer to the stage. [Stationhead is] living in the world where Cardi B was excited to meet her fans. We are for the 99 percent.”

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