Tencent Climbs To The Top Of The Gaming Market

Things are looking good for Tencent Holdings, who has quietly overtaken Sony and Microsoft at the top of the gaming market. Tencent has made several, nearly 180 smaller-scale investments, a sharp contrast to the splashy moves that the other two tech companies have grabbed headlines with. According to research firm Newzoo, Tencent led the industry in game-related revenue last year at $32.2 billion, way more than Sony’s $18.2 billion or Apple’s $15.3.

Tencent’s large lead can mostly be attributed to the company’s wide-ranging portfolio, which includes companies all over the world. A surprising 40% of Tencent’s investment deals in the first half of 2022 were outside China, a major increase from the 18% share for all of 2021.

Tencent’s vast portfolio includes Riot Games (League of Legends), Supercell, Epic Games (Fortnite), and Krafton (PUBG), just to name a few.

Unfortunately for Tencent, they are faced with many challenges at home in China where gaming restrictions and regulations have hampered their GDP. Since the government began re-issuing gaming licenses to domestic companies in April, Tencent has yet to get the green light for any titles, a very noticeable omission.

But thanks to its savvy international investments, the company has continued to thrive. Other Chinese big-tech companies like Alibaba Group Holding have struggled mightily in the wake of regulatory crackdowns, and might look to take a page out of Tencent’s book if they want to rediscover that past glory.

(All information was provided by Nikkei Asia)

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