The Chinese gaming giant Tencent is seen by many experts as the most powerful gaming company in the world. They own League of Legends (LoL), dominate the mobile market in China, own a super app with WeChat, are involved in many Western gaming companies, including Larian Studios (Baldur’s Gate 3). However, they are currently stumbling. Hits like “Genshin Impact” have eluded them. Now there are rumors that Tencent would take over the license for “Dungeons and Dragons” from Hasbro.
Who is Tencent and why are they so powerful?
- Tencent is a huge Chinese company focused on video games, social networks, online media, and other digital offerings.
- Domestic companies enjoy special competitive advantages in China because market access is regulated by the communist party and “foreign” companies need a license to participate in the market in China: Thus, there are “Chinese variants of Western services”. The Tencent app “WeChat” is a super app, a mix of WhatsApp, Facebook, and Paypal.
- Tencent has used its strength in China to invest in Western companies: They bought Riot Games (LoL) and have stakes in many other successful gaming companies, or they fully own them: They hold 48% of “Epic Games” (Fortnite), 30% of Larian Games (Baldur’s Gate 3), and 100% of Funcom (Dune).
Tencent has long been regarded as the “most powerful gaming company” in the world. Companies like Activision Blizzard say things like: “We have to sell to Microsoft, we are too small to compete with Tencent.”
Tencent is also working on a “replacement” for WoW, which had to close in China:
Tencent is envious of gaming hits like Genshin Impact
This is what Tencent says: The boss of Tencent, Pony Ma, said, according to reports (via reuters), at an annual meeting in a stadium in Shenzhen on Monday, January 29, that they had rested too long on their laurels and other companies now also have gaming hits.
Ma is quoted saying: “Gaming is our flagship path. But in 2023 we faced significant challenges.”
It is said that the competition has developed new products and Tencent itself now feels “that they have achieved nothing.”
Tencent’s new games have not performed as well as planned. Titles like Genshin Impact (miHoYO) and “Eggy Party” (NetEase) have performed better than their own.
Allegedly, Hasbro wanted to sell to the creators of Baldur’s Gate 3, but the penguin stepped in
This is the latest rumor: Now, a report has emerged that clearly indicates how Tencent might counter.
Allegedly, Tencent plans to take over the video game rights to the extremely popular fantasy series “Dungeons and Dragons” from Hasbro (via comicbook).
Actually, Hasbro apparently wanted Larian (Baldur’s Gate 3) to develop games for Dungeons and Dragons, but they lacked the money. Now Tencent has reportedly stepped in, owning 30% of Larian, as it is said.
It is currently unclear whether Tencent wants to buy the entire “Dungeons and Dragons” license or just the video game rights.
Currently, this is a rumor and has not been confirmed.
What Tencent means by the “challenges of 2023,” you can read here:
