Tencent concerned they will lose their position as leading game company
- Thread starter Jim Ryan
- Start date
Yeah, I've noticed. NetEase and MiHoYo have been churning out mobile games that are making bank and Tencent hasn't really gotten that many big hits in the same timespan in the last 2~ years.
Their acquisition/investment in the west also hasn't been fruitful just yet as well. Many different kind of studios with different strength and potential output.
Honestly, it feels a bit aimless to me. They seemingly let the studios do their own thing, which was a concern people had initially, but the reverse can have a negative impact on the business as well. Letting creatives be creatives is all well and good but as a publisher/(part)owner you're also there to remind them of the reality of the market and help them release a compelling product that can be financially successful.
Because they're a holding company rather than a publisher. At least they recognize there's a problem. Make good shit. Go where players are. Don't bet on radioactive trash like Epic Games Store.
He's the CEO, it's his job to obsess over this.
If their company is the biggest in term of valuation and it is not anymore it means stocks fell and he's failing at providing values to shareholders, the one and only job he's there for.
Sony needs to kick them in the teeth maybe press them on their From shares. Tencent has over extended themselves and have no strategy except to keep buying and mimicking Sony. They’ve been cutting back on premium game development and publishing. They shut down at least one new studio, huge cuts at riot, leyou and others. If soulframe isn’t a big hit they will do more cuts at digital extreme. They are still pursuing growth tho in Europe, South Korea and now India just like Sony
Netease. I think Sony is killing tencent slowly with netease and mihoyo games on ps5.
Actually, one of their recent big initiatives was launching a western-focused publisher, Level Infinite. The fact that you likely haven't heard of them or forgot they existed is indicative of their lack of recent success there.
As to why they're "falling behind", well, a lot of that is mobile, Asia-centric or GaaS focused and I am no expert on it. But I'd argue that Mihoyo, at least, is a lot more innovative within that market space. Genshin and StarRail might wear their influences on their shoulder but compared to Honor of Kings they're a regular old Andy Warhol. And then on the western stuff... bad bets? I dunno, I feel like some of their "best" purchases in the 2010s have underperformed this decade.
Tencent is 2.5 times larger in value than Sony is. They can't press them on anything.
Yes they game I’m not talking about all of tencent I’m talking specifically about the gaming division which accounts for only 30% of tencent revenue. They are alrdy in decline in premium gaming. Only health part of their gaming division is mostly the mobile space.
Well if we're going that route let me just take away electronics, movies and music and oh look if anything Sony’s even smaller now than it was in the last comparison.
By your logic Sony shouldn't be able to press Microsoft and yet look at these latest Xbox fiscal results in the investor calls
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And how do they press them on Kadokawa then? Threaten to keep it off PS? That ain't how this industry works.By your logic Sony shouldn't be able to press Microsoft and yet look at these latest Xbox fiscal results in the investor calls
I dunno, probably similar in a way how they pressed Microsoft for better terms on ABK
But more realistically, probably coming to some sort of agreement. As a priority investment, Tencent gains less from their Kadokawa/From Software shares over time than Sony does in terms of how they can leverage that investment with other investments (internal and external) in that space. Tencent doesn't have its own anime streaming service; Sony does. Tencent doesn't make their own games; Sony does. Tencent doesn't make shows/movies or adaptations of game & anime/manga IP; Sony does.
If Sony opened up shares of their own for Tencent to buy into the company, Tencent would probably be more than willing to give up their FromSoft and Kadokawa shares to Sony. That's what leverages and synergies can get you. It's not purely about market valuations and capital, your thinking in that regard is outdated.
I know right! 3 trillion dollar corporation getting its ass best by Sony but ppl think they b can’t beat tencent which is like only worth 350 billion? PS can beat tencent and dominate them. Much of Sonys software is limited in mainland China because of censorship of Sony didn’t have to go through a strict case by case vetting process for its games it would have a much higher adoption rate in China for ps5 and ps software boosting Sony profits well over tencent.By your logic Sony shouldn't be able to press Microsoft and yet look at these latest Xbox fiscal results in the investor calls