Chinese publisher The9 signs $500M deal to secure the rights to Cross Fire 2

Cross Fire is a massively successful game. You’re probably doubting that statement because you haven’t heard of it. But it’s a free-to-play shooter that makes around $1 billion each year — that’s more than online multiplayer strategy game Dota 2 or the collectible card battler Hearthstone: Heroes of Warcraft.

But while Cross Fire has made a lot of money for publisher Tencent, developer Smilegate is moving ahead with Cross Fire 2. And it looks like this time Tencent isn’t involved. Chinese publishing company The9 revealed today that it has worked out a deal with Smilegate for Cross Fire 2 that is potentially worth half a billion dollars. In China, The9 will have exclusive distribution rights for Cross Fire 2 for five years in exchange for an upfront payment of $50 million. Smilegate stands to make an additional $450 million as it reaches set “development and operation milestones.” That $500 million doesn’t even include royalty payments. This is a gigantic deal that reveals China is a hugely important gaming market all on its own.