ALL THE LATEST NEWS ABOUT THE BUSINESS OF PC GAMES

News

Tencent hoping to capitalise on games success for cloud business

Tencent hoping to capitalise on games success for cloud business

Chinese tech and entertainment giant Tencent has said that it wants to use the success it has had in the video games industry to make to establish its cloud business.

Speaking to Reuters, the head of Tencent Cloud and Smart Industries Dowson Tong said that the company is on the hunt for partners for partners in South East Asia, including South Korea, to use its tech for cloud-based games.

The exec said that Tencent is looking to play the long game with its cloud business as it's a rather big venture to establish.

"Our focus will be to capitalise on the advantages that Tencent has with the global video games eco-system, and help more customers - some of whom are Chinese businesses going overseas, some of whom are local game developers in foreign markets," Tong said.

He continued: "Many of the things we are doing will take a relatively longer time. It's not like we're selling a small product that needs quick decisions. This business needs a longer runway."

Tencent recently announced a partnership with hardware firm Razer to create a set of standards for cloud games. The Chinese giant has also been involved in two cloud streaming services in the region. The Start platform underwent a beta trial in March of this year, while Tencent has also partnered with chip specialist Intel for the Instant Play streaming service.

In May 2019, research firm IHS Markit predicted that the cloud games market would be valued at $2.5bn by 2023. Last year, it earned just $387m.


Editor - PC Games Insider

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he was hired to launch PCGamesInsider.biz for Steel Media before departing the firm in October 2019.

He has also written for GamesIndustry.biz, VGC, Games London, The Observer/Guardian and Esquire UK.

Comments

No comments
View options
  • Order by latest to oldest
  • Order by oldest to latest
  • Show all replies