The partnership aims to provide players and Chinese developers with a new channel to access games and other Steam products
Perfect World, one of the most famous Chinese gaming companies, has partnered with Valve – the software house founded in 1996 by Gabe Newell and Mike Harrington based in Bellevue, Washington – in order to develop a localized version of Steam in China.
The purpose of the partnership is to provide Chinese gamers and developers with a new channel to access games and other entertainment products on Steam’s distribution platform. Perfect World said that the launch of Steam in China would not affect its existing Steam operations.
Valve and Perfect World are trying to compete directly with the incumbent players
Perfect World, according to the agreement, will establish, operate, and promote Steam in Mainland China. Not only, it will even be responsible for introducing Steam’s international gaming products to the market and it will distribute locally-made games on the platform. Valve, for its part, will provide software licensing and other technical support.
The main opponents of Valve and Perfect World in the Chinese market are Tencent and NetEase, two of the largest companies in the gaming market in China.
To advance in the gaming market, the duo will have to beat Tencent’s competition
Tencent is the biggest gaming company in the world and it has already created WeGame, a platform in China similar to Steam. Tencent also owns Riot Games (League of Legends) and holds stakes in Activision Blizzard (World of Warcraft, Diablo, Starcraft, and Hearthstone), Supercell (Clash of Clans, Clash Royale), and Epic Games (Fortnite).
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