Tencent acquires bulk stake in Do not Starve studio Klei Home entertainment
Klei says it will retain ‘full autonomy of innovative and operations across all elements of the studio.’
Canadian studio Klei Home entertainment, the designer of indie hits including Mark of the Ninja, Do Not Starve, Oxygen Not Consisted Of, and Griftlands, is indie no more. The studio revealed today that Chinese video gaming giant Tencent has acquired a majority phase in the company, a deal that creator Jaime “Bigfoot” Cheng said “helps us navigate a changing market, and helps us focus on what we do best: making unique experiences that nobody else can.”
” As part of this agreement, Klei maintains full autonomy of imaginative and operations throughout all elements of the studio, consisting of jobs, skill, and more,” Cheng stated on the Klei forums. “There are some uninteresting accounting changes that we will need to adapt to. Aside from that, I will continue running the studio as previously, with no modifications to staffing, tasks or other operations.”
Tencent is China’s largest tech conglomerate, and a game market powerhouse: It owns League of Legends studio Riot Games outright, holds a 40 percent stake in Epic Games, and has smaller stakes in Activision, Ubisoft, Paradox Interacitve, Frontier Advancement, Funcom, Fatshark, and many others. It bought 31 video gaming companies in 2020, and while lots of were based in China the moves gave the business control over a variety of studios that will be familiar to Western players. It got Leyou Technology for $1.5 billion in August 2020, for instance, which owns Warframe developer Digital Extremes and Gears Methods studio Splash Damage, among others. The deal means that they are now all owned by Tencent.
In spite of its enormous size, Cheng stated that “Tencent is the only company that we felt would let us retain the level of control that we require.” He also kept in mind that Klei has actually formerly dealt with Tencent on all of its video game releases in China because Do Not Starve Together in 2016.
” Gamers in China comprise a large percentage of the gamers of our games, and we have actually been supporting them alongside our North American operation for several years,” he stated. “We do not expect substantial operational changes for China or anywhere else on the planet, but we do expect that this collaboration will help us to better assistance our players in China.”
A September 2020 report stated that after prohibiting the WeChat app, the United States federal government was thinking about similar action against Tencent. In January, nevertheless, Reuters reported that the strategy, which also consisted of Alibaba and Baidu, had been put on hold. Klei’s newest game, the deck-building roguelite Griftlands, is now in Early Access on Steam and anticipated to enter into full release later this year.