Nintendo, one of the largest and most popular gaming companies in the world, has had issues with breaking into the Chinese market for years now. However, its partnership with Chinese gaming giant Tencent might place the company on the cusp of a breakthrough.
Access to Successful Content
There are rumors about what Tencent plans to achieve through the Nintendo partnership, plans which could have consequences beyond China. Tech news medium Engadget reported that Tencent could use this relationship to build Nintendo style games with real characters.
SponsoredTencent reportedly wants to develop its own games with Nintendo characters https://t.co/BPECtuZf1b pic.twitter.com/SPn5wGDFVe
— Engadget (@engadget) November 11, 2019
According to the news medium, an unidentified staff member at the tech company said, “What we want is to expand from China, and one target is console game players in the US and Europe. We hope to create console games with Nintendo characters, and learn the essence of making console games from Nintendo engineers.”
This is undoubtedly a big deal. Nintendo is known for having a protective stance on its content and all properties. For so long, the company has discouraged sharing characters with other gaming companies as it seeks to keep its user experience unique. When it does provide access to its secret sauce, it scrutinizes, and this has given it a widely acknowledged reputation for quality control.
Entering China With a Strong Partner
Tencent and Nintendo announced a partnership in April 2019, which means the Switch (Nintendo’s gaming console) will soon launch in China. The deal also includes the launch of some of the biggest Switch games in the Asian country.
By any standards, the alliance was a profitable one. Nintendo has been raking in billions from selling games and consoles all over the world, but it hasn’t been able to penetrate the Chinese market due to strict regulations on the sales of gaming consoles.
With Tencent, the gaming company finally has a partner with a strong foothold in China. Thanks to this partnership, Nintendo will be able to establish a strong foothold in a country which, per data from Statista, is just shy of being the biggest gaming market in the world by revenues.
SponsoredDigital growth continues to be a key driver for Nintendo.
Here is a look at digital revenue, which includes full game sales, add on content and Switch Online subscriptions.
Note. Switch Online revenue recognised from Q2 FY2018, hence the bump and growth since. pic.twitter.com/MNgOIyVqTH
— Daniel Ahmad (@ZhugeEX) October 31, 2019
Acquisition not Development Driven
While Tencent is already the largest gaming company in the world by revenue, it didn’t get to that level through game development. As opposed to building content for decades (a la Nintendo), Tencent invests (or buys) major game makers.
SponsoredAt press time, the Chinese company owns Riot Games (developers of “League of Legends” and “Teamfight Tactics”), as well as 40 percent of Epic Games (developers of “Fortnite,” and the Unreal Engine software), and 84 percent of Supercell (developers of “Clash of Clans,” “Clash Royale,” and “Brawl Stars”), among other companies.
SponsoredPast couple of weeks have been pretty insane.
Call of Duty Mobile reached 100m downloads
Fortnite goes down for nearly 2 days to promote Chapter 2
Riot announces a ton of new gamesAnd Tencent benefits from all 3.
— Daniel Ahmad (@ZhugeEX) October 16, 2019
Do you think the Tencent Nintendo partnership is good for the gaming industry? Share your thoughts in the comments below.
Images are courtesy of Twitter, Shutterstock, Pixabay.
Midnight