Tencent Games, the enviornment’s biggest gaming firm (and China’s second biggest tech firm), has its fingers in reasonably a pair of pies. Within the gaming trade, it has investments in firms love Ubisoft, Activision Blizzard, and Epic. But in 2020, Tencent closed 300 p.c more deals than it had the earlier yr—including a whopping 31 gaming firms to its list of investments and acquisitions.
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This all comes courtesy of Niko Companions, the main market be taught and consulting firm for Asia’s elephantine gaming trade. In a fresh weblog put up, the firm outlined several of the biggest market traits for the Asian games market, but doubtlessly the most attention-grabbing is Tencent’s aggressive investment into smaller gaming firms.
The list of the 31 gaming firms Tencent invested in might possibly possibly merely be considered beneath, but or no longer it’s rate noting that virtually all of its investments are minor stakes in smaller Chinese language firms that don’t maintain significant of a world presence.
The investments rate noting, on the replacement hand, are ones love Tencent’s undisclosed minor stake in Japanese developer Platinum Games (which took enviornment abet in January 2020) followed by its $148 million acquisition of Norwegian developer Funcom. Tencent also sunk $150 million of funding into Roblox in February, while in August it dropped a mountainous $1.5 billion to function Leyou Technology in August.
If Leyou Technology does no longer ring a bell, they are a Hong Kong-basically basically based holding firm that itself has its fingers in reasonably a pair of utterly different pies. Right here’s what you maintain got to grasp:
- Leyou owns Digital Extremes, makers of Warframe (obtained them in 2014)
- Leyou owns Splash Hurt, co-developers of Gears Ways, Dirty Bomb, and utterly different games
- Leyou has a publishing agreement with Amazon for the Chinese language originate of Amazon’s upcoming Lord of the Rings MMO
- Leyou’s subsidiary Athlon Games is a shareholder and publishing accomplice of LCG Leisure, which now owns the intellectual property of Telltale Games after it went defunct.
Tencent’s acquisition of Leyou successfully blueprint Tencent is now the owner of Digital Extremes, Splash Hurt, and the intellectual property of Telltale Games. The final of Tencent’s 2020 investments are largely in Chinese language gaming firms and platform holders, love Huya/Douyo, China’s biggest livestreaming platform that veteran to be rivals earlier than merging earlier this yr. Every firms were backed by Tencent, and it now owns spherical 68 p.c of the merged firm.
It’s plenty to preserve music of and, because the Niko Companions document suggests, is due to “rising competition within the games home from huge tech corporations equivalent to Bytedance and Alibaba, apart from medium sized firms equivalent to Lilith and MiHoYo [the makers of Genshin Impact] which maintain succeeded in areas the set Tencent has seldom invested in.”
That is no longer basically to instruct Tencent is in be concerned of losing its enviornment on the throne because the enviornment’s biggest gaming firm, but or no longer it’s attention-grabbing to perceive which firms (and by extension their games) Tencent is placing money into.
Whenever you are outlandish about all of the most most well-known gaming firms that Tencent has invested in, we maintain now a comprehensive list. That probabilities are you’ll well possibly also test out Niko Companions’ weblog put up for more insights into the Chinese language gaming trade from 2020, or test out the plump list of the acquisitions and investments it made closing yr beneath.
Steven enjoys nothing better than an extended grind, which is precisely why his specialty is on investigative feature reporting on China’s PC games scene, uncommon tales that upset his of us, and MMOs. He’s Canadian but can not ice skate. Embarrassing.