Tencent is aggressively investing in many companies, which makes you wonder why. Right? In this article, we have the answer.
Tencent is one of the biggest gaming companies in the world. The reason why many games such as League of Legends, Fortnite, and Ubisoft Games arrive in China is that of its investments to these companies.
Tencent has been investing in big-name companies over the past decade. But now, we see it’s also investing in growing companies and even startups.
Randy Lee, the North American business development for Tencent, shared his insights with VentureBeat.
“We’re always thinking blue ocean and new opportunities,” said Lee. “That goes back to our origins before we were even into games. There were a lot of companies who were in that space, and the whole ecosystem was massively multiplayer online role-playing games.”
“We were the small fry,” Lee added. “But what we did is we looked at the blue ocean, so we brought in Counter-Strike-like shooter Crossfire from Korea, we brought in MOBAs, we brought in sports games with the licensing like NBA 2K. These were the things that Chinese players never played, but in our mind, whether you’re in China or in the West — if you like the game, you’re going to play it. League proved that.”
In China, players are hungry for more and more games. Due to China’s regulations and trade barriers, however, publishers like Ubisoft will have a hard time bringing in their games to China.
Nevertheless, Tencent sees the enthusiasm of the Chinese players. Tencent is ready for this as they continue to take over the world by creating innovative gameplay and bringing it to China.
Tencent is continuing to dominate the mobile game industry. This time, news comes in from one of its top games Arena of Valor. Arena of Valor made US$185 million in April 2018 alone.
Lee also mentioned that they do not mind if the investments start slow. He prefers games that are built over time after finding their core audience. We predict that they will eventually not regret their decisions in investing aggressively.
Edited by Devi. Top image source: Gizmodo