Amazon's clash with tencent 腾讯, every game company that tencent has invested in

Global majors in the gaming sector such as Nintenvì chưng & Epic Games rely on Tencent. (Source photos by APhường & Ken Kobayashi)
NAOKI WATANABE, TOMOKO WAKASUGI & NORIO MATSUMOTO, staff writersJanuary 23, 2021 13:24 JST | China

TOKYO -- Chinese internet group Tencent Holdings is moving beyond a local strategy lớn size a global "empire" by leveraging its game business.

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The company has grown by forming partnerships with local companies và making repeated investments in target markets, with highly convenient apps -- such as messaging portal WeChat, which has 1.2 billion users -- providing a strong economic base on which to lớn build.

Tencent Holdings now ranks aý muốn the world"s trang nhất companies in terms of market capitalization, but its increased presence on the global stage is leading to lớn political frictions with the U.S.

At a briefing in December, Zhao Jiannan, managing director of Northeast at Tencent Cloud International, the company"s cloud computing arm, underlined the ambitions it has for its gaming business in Japan, for example, trang chủ to lớn some of the games industry heavyweights, Sony & Nintenvì chưng.

"Another aspect of Tencent is that it"s a game company," he said. "Our wish is lớn contribute to lớn Japan"s game industry through our cloud business." Tencent operates a data center in Japan.

One way that Tencent is going the extra mile for its users can be seen in the smash hit game in the Chinese market, Honor of Kings, which offers a video clip đánh giá function lớn examine how a user tackled the game once play is over. The videos are automatically created using artificial intelligence khổng lồ highlight certain scenes. Tencent aims to lớn further develop customers, such as game companies, by leveraging such popular functions.

Domestically, Tencent, founded in 1998 by Pony Ma, rivals ecommerce-focused Alibatía Group Holding. But with a market capitalization exceeding 76 trillion yen ($733 billion), it also rivals the major U.S. công nghệ companies collectively known as GAFA -- Google, Apple, Facebook and Amazon.

What propelled Tencent forward was its social truyền thông media and game business. According to U.S. market intelligence company Sensor Tower, the Playerunknown"s Battlegrounds sản phẩm điện thoại and Honor of Kings games, both distributed by Tencent, ranked top & second in the Mobile game revenue ranking in 20trăng tròn, with revenue levels reaching more than double those of rivals ranking third or lower, including Poketháng Go by Niantic of the U.S.


Unlike older industry players Nintenvì & Sony, which both make games consoles, Tencent"s main arena is on Smartphone. With distribution as its key weapon, it has swept through the game industry with a strategy of gradually expanding its economic base by striking tie-up giao dịch & making investments. It is now poised to lớn become as much of a worldwide presence as Netflix, the U.S. Clip streaming company which has grown fast by lining up svào nội dung offerings from a solid capital base.

Making acquisition moves in the game industry, Tencent targeted Riot Games, known for its League of Legends title, and Supercell, a company formerly owned by Japanese tech investor SoftBank Group và known for the Clash of Clans game.

It now has interests in major Mobile games after investing in Bluehole, a South Korean company that developed PUBG, & Epic Games, the Fortnite developer which has taken on Apple over distribution fees on its App Store. Tencent also has close ties with Japanese game companies, including a stake in Marvelous, the developer of Harvest Moon, and a tie-up khuyến mãi with Nintenbởi.

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More recently, Tencent has been in the process of merging two live game streaming companies it has stakes in, so as lớn gain control of them. As the new coronavirus pandemic has stimulated demvà for game play from people staying at trang chủ, Tencent saw its Smartphone online game revenue increase by 45% in the period from July khổng lồ September 20trăng tròn.


"Tencent has focused from the beginning on communication to liên kết people together," said Toshihiko Okano, an expert on Chinese tech companies at Japan"s NTT Data Institute of Management Consulting. "It has been successful in creating an ecosystem using infrastructure & công nghệ." In, especially, it has "successfully concealed its "Chinese" color by working with local companies."

Tencent, whose business is centered on WeChat, operates the WeChat Pay news, music streaming and payment service, as well as its cloud service.

It has launched mini apps that operate on WeChat apps và reinforces their functions. For example, these can give sầu users the ability to order items by scanning QR codes on their phones in shops.

Tencent has also invested in Chinese ecommerce site & food delivery phầm mềm operator Meituan Dianping lớn reinforce its electronic transaction functions.

Via investments và partnerships, it has also expanded operations into lớn wide-ranging industrial areas, including the development of basic in-vehicle software, artificial intelligence, systems development linked to smart cities, và ride-hailing & maps services.

In nhật bản specifically, Tencent is promoting a strategy of using games to expvà its economic base. It has teamed up with local conglomerate Mitsui & Co. và used its cloud service khổng lồ tư vấn the development of mini apps. Tencent aims to lớn sell this service khổng lồ Japanese companies wishing to develop in the Chinese market. It is in talks with Mitsui about establishing a joint company.

Tencent"s strategy of promoting "super apps," which offer wide-ranging services, including payment, social media, food và ride-hailing, on a single app, is growing, particularly in

However, its economic expansion is bumping up against a wall. Outgoing U.S. President Donald Trump has signed an executive sầu order banning transactions in the U.S. via Chinese apps, including Alibaba"s Alipay & the payment function of WeChat.

In the summer of 20trăng tròn, Trump also signed an executive order banning the hugely popular video-sharing app TikTok, owned by China"s ByteDance, & WeChat. It remains unclear whether either order will take effect with the upcoming transition to the administration of President-elect Joe Biden. Whether or not they do, conflicts between Chinese companies and the U.S. authorities are expected lớn remain.

While Tencent"s social media-related services are facing security issues in the U.S. over data use, its game service has not so far come up against regulatory restrictions there. However, in India, there have been moves to potentially ban the use of its apps. The company also faces the difficulty of maintaining a favorable relationship with the Chinese government, after Alibaba"s relationship with Beijing has deteriorated since late last year.

Tencent"s strategy for continued global growth will not necessarily avoid political risk.

Chuyên mục: Tin Tức