ByteDance, owner of TikTok, created smartphone games division

According to Bloomberg, the Chinese internet company has already purchased several development studios and exclusive distribution rights, and is preparing to release its first two titles during the second quarter of 2020.

Internal company sources claim that ByteDance is specifically targeting the gamer market seeking its space in the market that is lately one of the most profitable when it comes to mobile devices.

While ByteDance has already produced a number of casual games that have generated ad-based revenue, the company is interested in making a larger strategic shift so it can start targeting "hardcore" gamers.

As such, its current gaming channel will include multi-player online games with "Chinese fantasy elements", which will be built by newly acquired studios with a lot of experience in the genre.

"ByteDance's huge global user base and investment in gaming could make it a major disruptor in the gaming space this year," Niko Partners analyst Daniel Ahmad told Bloomberg.

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Of course, to make any real progress, ByteDance will need to challenge Tencent's dominance - and that's no easy feat. In addition to being the biggest player in the Chinese smartphone game market, Tencent also has stakes in several Western companies including Riot Games, Supercell and Epic Games.

"However, while they may develop several successful titles in the Chinese market, we believe it will still be difficult for them to truly challenge Tencent."

It's a situation that means that while ByteDance could disrupt Tencent's established monopoly, it will be difficult (for now, at least) to pose a real threat to its Chinese rival.