- World’s largest mobile gaming developer and the parent owner of Riot Games, has revealed a five-year outline for its esports ventures
- Planning to create a 100 billion yuan ($14.6 billion) industry within China,
- Includes new leagues, tournaments, associations and its previously announced esports-themed industrial parks
Tencent, the world’s largest mobile gaming developer and the parent owner of Riot Games, has revealed a five-year outline for its esports ventures. The investment holding company announced at a press conference last Friday that it would create a 100 billion yuan ($14.6 billion) industry within China, complete with new leagues, tournaments, associations and its previously announced esports-themed industrial parks.
Tencent sits within the world’s top ten companies measured by market capitalisation.
The announcement was made by Tencent E-sports, its competitive gaming subsidiary established in December 2016. At the same conference, Ding Dong, Director of the information center of the State General Administration of Sports, confirmed that Chinese sport authorities would be working closely with Tencent over the next five years to establish unified standards for esports in the country.
Tencent, as well as fellow esports competitor Alibaba, sits within the world’s top ten companies measured by market capitalisation. Alongside its esports success with League of Legends, Tencent acquired 84% of Finnish mobile developer Supercell in 2016 for $8.6 billion, and recently launched a $1 million prize pool league platform for its tower defense/MOBA hybrid title Clash Royale.
In China, Tencent’s LoL “inspired†MOBA Honor of Kings has consistently been a chart topper for mobile devices, was largely responsible for an 87 per cent spike for the company’s mobile game revenue in Q3 of 2016, and its Pro League last year was watched by over 70 million people. The title was soft-launched in Europe earlier this year, under the alternative title Strike of Kings.
According to the research firm IDC, China’s total revenue from the esports industry has grown 52% year-on-year to $7.3 billion, and 34 percent of this was generated by mobile gaming. Tencent’s major investment in their home esport-turf could be an attempt to finally claim the last area where they aren’t #1: prize-winnings. According to Unibet, Chinese esport tournament winnings last year eclipsed $19.3 million, primarily on the back of Valve’s Dota 2.
Source: https://esportsobserver.com/tencent-china-investment-plan/
Tags: eGambling, esports, League of Legends