The Chinese Internet giant earns 30% of its revenue from online games
Tencent, the world’s largest game company in 2018 revenue, bought a 16% stake in Phathea Games. To report, citing the changes in the game developer’s corporate registration information, is the Chinese media Caijingtuya. The financial details of the agreement, however, are not publicly available.
Pathea Games, founded in 2010, creates titles for PCs, consoles and mobile devices. The company is based in Memphis, in the United States, and in Chongqing, China. Some of his titles, including My Time At Portia, are already available on Steam, a very popular game distribution platform in the United States. My Time At Portia, a role-playing simulation game that takes place in a post-apocalypse setting, took 6th place in the Indie of the Year Awards 2018 chosen by the players.
Tencent continues to bet on external developers
This new agreement is yet another bet in smaller gaming companies than Tencent, which maintains its advantage in the sector by developing its own titles and, at the same time, by investing in external companies, particularly those with a presence outside of China. In May, Tencent also purchased Sharkmob, a game studio based in Sweden, while in July it led the A series of financing for Antstream Arcade, a UK-based streaming platform for retro games.
Furthermore, in 2015, Tencent devised completely US-based game developer Riot Games, the creator of “League of Legends”. The Chinese Internet giant, in 2012, also took a minority stake in Epic Games, which then developed successful titles like the famous Fortnite.
Tencent, demonstrating the goodness of such projects, achieved revenues of RMB 88.8 billion ($ 12.9 billion) in the second quarter of this year, of which RMB 27.3 billion (hence 30%) come from online games.
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