Tencent Becomes Largest Investor of Japanese Video Game Business Marvelous Inc – Pandaily
Tencent will obtain a 20% stake in Japanese game designer and publisher Wonderful, which is best known for its farming simulation game Story of Seasons, making the Chinese gaming leviathan the biggest shareholder of the business, according to a report from GameLook.
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Tencent will invest around 7 billion yen ($65 million) through an affiliate called Image Frame Financial investment on buying existing shares and new shares from the Japanese video game maker. The transaction will happen in June, a report from Nikkei Asian Review stated.
Wonderful stated it would utilize the financial investment to expand its existing video game franchises and launch new titles in the next 3 years. One of the company’s most recent releases was third-person mech shooter video game Daemon X Machina. Wonderful is likewise getting ready for the launch of Story of Seasons: Pals of Mineral Town– a remake of a wildly popular title released in 2003 that will be offered on Nintendo Switch in July.
In addition to the Story of Seasons franchise, Splendid’ other video games such as those in the Rune Factory series and Senran Kagura have actually also been extremely successful in both the Japanese and abroad markets. However, the company has actually seen sharp drops in revenue in its video gaming organisation in the financial year ending March 31, with revenues from its online video game sector dropping 78% and revenues from its customer game organisation decreasing 28.8% compared to the previous financial year.
“In comparison to Western companies, there is a widening abyss in regards to development capability and financial clout,” Marvelous stated in a declaration to Reuters.
The partnership in between Tencent and Marvelous returns to 2019, when the Japanese gaming business offered Tencent the right to use the intellectual property of Story of Seasons to make a mobile title. The title is still presently under development, according to the GameLook report.
Before purchasing the stock of Magnificent, Tencent also in January bought Japanese designer Platinum Games, a business understood for action titles such as Nier: Automata and Bayonetta. Platinum Games president and CEO Kenichi Sato said the partnership with Tencent does not impact the developer’s self-reliance.
In addition to being the moms and dad business of League of Legends creator Riot Games and Finnish designer Supercell, Tencent likewise owns shares of many significant video gaming companies around the globe, consisting of 40% of Fortnite designer Impressive Games, 5% of Activision, as well as 11.5% of PlayerUnkown’s Battlegrounds owner Bluehole.