China’s Tencent looks to leverage its partnership with Nintendo in the U.S. by making more console videogames designed for U.S. gamers
By Takashi Mochizuki in Tokyo and Shan Li in Beijing Nov. 10, 2019 8:00 am ET China’s Tencent Holdings Ltd., the world’s largest videogame company by revenue, is looking to make more console games for U.S. consumers by leveraging its partnership with Japan’s Nintendo Co. NTDOY -0.39% , Tencent officials said.
“What we want is to expand from China, and one target is console game players in the U.S. and Europe,” said a Tencent official, who asked not to be identified. “We hope to create console games with Nintendo characters, and learn the essence of making console games from Nintendo engineers.” Both companies are cautious about Nintendo business in China. Tencent officials said they didn’t believe the Switch would sell in China as well as it has in the U.S. and Japan, because Chinese customers are more accustomed to playing games on smartphones and PCs.
Nintendo Chief Executive Shuntaro Furukawa has adopted the same view as Tencent, telling analysts that they shouldn’t expect a lot from the Switch in China. Lisa Cosmas Hanson, managing partner at Niko Partners, said while she didn’t see console game development for the U.S. as a priority for Tencent, she thought the move could give it an observation post on the tastes of U.S. gamers.
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