China’s largest eSports corporation, Tencent, has announced a partnership with legendary Japanese video game company, Square Enix. Both companies will join together to create new games base on series from both companies. Tecent has the largest grasp on the video game market in China as they own licenses of the largest mobile and PC games such as PUBG and League of Legends. With this new partnership, Tencent and Square Enix can release games from Final Fantasy and Dragon Quest to the chinese audience.
Tencent really needed this partnership as just a few days ago, they took a large hit. The company lost 20 billion dollars in value after the announcement that the International Olympic Committee would not accept eSports if the games were violent. Many of the most popular eSports have elements of fantasy violence and Tencent owns the rights to many of them. This partnership will allow Tencent to slightly bounce back because of the prestige that Square Enix games hold.
Square Enix can use this partnership to reach the largest audience it could have imagined, the mobile gaming community of China. Square Enix has always made superb games on consoles, but flopped when it came to mobile games. Tencent can help market the games and brand recognition within their audience. Games to expect to see are spin offs of Dragon Quest, Tomb Raider, Final Fantasy, and Chaos Ring. Square Enix can use the Tencent owned WeChat app to market their games. WeChat is the the most popular mobile messaging, gaming, payment, and delivery app in China. They can reach billions of people through the app and increase sales significantly just by making their brand more visible to the Chinese gaming community.
Overall, we can expect to see moves from both companies soon. Square Enix has announce the release of Kingdom Hearts III at E3 and Tencent is continuing to assert dominance on the eSports world.