Tencent hopes to make US games with Nintendo

Yolanda Curtis
November 12, 2019

Tencent Holdings Ltd is looking to make more of its partnership with Nintendo Co.to create video games for the United States market, Dow Jones reported.

Although there isn't any official confirmation from either of the companies, Dow Jones reported citing unidentified Tencent officials that the company hopes to leverage its partnership with the Kyoto-base company to create console games with Nintendo characters for the USA market.

Tencent is mobilizing all possible resources to dominate the gaming space by acquiring stakes in gaming companies.

The long-term benefit of such a project will be the chance to learn from Nintendo on how to win over gamers in the US and European markets, as Tencent failed to do so with Arena of Valor.

"We hope to create console games with Nintendo characters, and learn the essence of making console games from Nintendo engineers", he was quoted as saying. Nintendo declined to comment to Dow Jones.

Indeed, Nintendo and Tencent did begin a partnership back in April 2019 with Nintendo hoping to boost Switch sales in the Chinese market. U Deluxe on Switch, various laws which have targeted gaming addiction in China have put a bit of a stranglehold on the approval of new games, access to online gaming, and even gaming curfews for young players. The company is also in a partnership with Nintendo, too. Companies outside of the country are expected to partner with a Chinese company if they want to enter the market.

Profiting from a potential deal to distribute Nintendo games is also not high on Tencent's priorities because Nintendo titles are not built to encourage a lot of spending, a Tencent official said. That Nintendo would allow Tencent to use its characters in games seems doubtful, but there's little doubt that Tencent has the desire to pursue expanded efforts outside of China anyways. The timid response to the "Arena of Valor", the rebranded version of the successful Chinese game "Honors of King", in the US market forced Tencent to rethink the USA marketing strategy. However, Tencent might find it a challenge to develop games for western consumers. One of Tencent's highest-profile attempts at the reverse is "Honor of Kings", a mobile game that is a monster hit with Chinese gamers but that has failed to catch on outside of China.

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