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Chinese game giant Tencent looks into Southeast Asia with a Sea partnership amid uncertainty at home settings



Tencent Holdings, the largest media and social media game publisher in China, has partnered with Singapore-based Sea e-commerce and gaming companies to publish the title of its game in Southeast Asia as the Chinese technology giant looks into international markets amid stagnant growth at home .

The agreement gave Garena, the Sea digital entertainment group, the right to first refuse to publish Tencent mobile and PC games in Indonesia, Taiwan, Thailand, the Philippines, Malaysia and Singapore for five years, according to a statement issued Monday by the Sea.

"Garena operates in several of the fastest growing markets globally and has a deep understanding of the dynamics in this region. "Our long-term partnership and collaboration with Garena on key titles has been successful, and we are pleased to further deepen our strategic partnership through this arrangement," Martin Lau, Tencent's president, said in a statement.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Sea, supported by Tencent which was first invested in the company in in 2010, it operated the largest gaming platform in Southeast Asia with 161 million quarterly active users in the second quarter of 2018. Garena has sold Tencent's most popular games on its platform including Arena of Valor, the international version of the Tencent blockbuster game Honor of Kings, and League of legends"Data-reactid =" 34 "> Sea, supported by Tencent which was first invested in the company in 2010, operates the largest gaming platform in Southeast Asia with 161 million quarterly active users in the second quarter of 2018. Garena has sold the most Tencent games popular on the platform including Arena of Valor, the international version of the Tencent blockbuster game Honor of Kings, and League of legends.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tencent cut the game marketing budget amidst regulatory freezes"data-reactid =" 35 "> Tencent cut the game marketing budget amid a regulatory freeze

This partnership occurs because the growth of China's gaming industry has stalled after stopping the game approval process and tightening the regulatory environment at home, making developers and publishers eager to explore opportunities abroad.

The Chinese gaming industry has overcome a vacuum in the approval of new games since March due to regulatory overhaul, and broader calls from Beijing to gaming companies to do more to protect the nation's youth from online addiction and myopia. In August, China's Ministry of Education announced plans to limit the number of new online games and limit playing time in an effort to protect children's eyesight.

In the first half of this year China's overseas sales of titles developed reached US $ 4.6 billion, up 16 percent year-on-year, exceeding 5 percent year-on-year growth in the industry as a whole, according to a Beijing-based research company. CNG.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Mobile version of the popular title Tencent PlayerUnknown’s Battleground has the second highest number of monthly active users of any global smartphone game in the third quarter of 2018, and its income has tripled to a quarter outside of China, according to Annie's App. Meanwhile, Tencent is still awaiting approval to monetize the game at home. "Data-reactid =" 39 "> Mobile version of the popular title Tencent PlayerUnknown’s Battleground has the second highest number of monthly active users of any global smartphone game in the third quarter of 2018, and its income has tripled to a quarter outside of China, according to Annie's App. Meanwhile, Tencent is still awaiting approval to monetize the game at home.

Tencent's mobile gaming business reported 11 percent sequential growth in the third quarter thanks to a seasonal boost during the summer holidays and new releases. Mobile gaming revenue for the quarter rose 7 percent year-on-year to 19.5 billion yuan (US $ 2.9 billion), while personal computer game revenues fell 15 percent year-on-year to 12.4 billion yuan as players continued to shift to mobile games .

The agreement with Garena, which revenue of US $ 139.1 million in the second quarter was very small compared to Tencent, but still helped expand the game of the Chinese giants in the developing Southeast Asian market.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Home to around 655 million people in 11 countries, Southeast Asia has become a battlefield for Chinese technology companies for the online market that are largely untouched and rising middle class.
"data-reactid =" 58 "> Home to around 655 million people in 11 countries, Southeast Asia has become a battleground for Chinese technology companies for its online market, which are largely untouched and rising in the middle class.

This is also one of the fastest growing regions in the gaming world, with PC online and mobile game revenue reaching US $ 2.2 billion in 2017. Revenues are expected to double to US $ 4.4 billion by 2021, according to the company market research Niko Partners.

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