Tencent takes management of Chinese language gaming studio behind Swords of Legends franchise – South China Morning Put up

Chinese language social media and gaming big Tencent Holdings has acquired a controlling stake in a longtime native online game studio, a transfer that matches with the corporate’s income diversification technique.
By assuming management of Beijing-based Wangyuan Shengtang, a 15-year-old online game developer and writer recognized for its Swords of Legends collection, Tencent will acquire entry to the premium franchise and diversify its income stream, mentioned Zhang Shule, recreation sector analyst with consultancy CBJ Suppose Tank.
Tencent, by means of an funding car Guangxi Tencent Enterprise Capital, final Friday acquired 100 per cent of Dongtai Yunpeng Tradition Co, which owns 43 per cent of Wangyuan, in response to enterprise registry service Qichacha. Individually, the funding car additionally elevated its stake in Wangyuan from 23 per cent to 31 per cent.
Along with the 20 per cent stake Tencent holds by means of Linzhi Tencent Expertise Co, which first backed the gaming studio in late 2020, the Shenzhen-based online game powerhouse now owns greater than 94 per cent of Wangyuan.
Because the controlling stakeholder within the Beijing-based studio, Zhang mentioned Tencent will acquire mental property, improvement energy, in addition to advertising and marketing and distribution channels that may “enrich Tencent’s gaming empire”.
Meng Xianming, 58, who based Wangyuan in 2009, will retain his chief govt function below Tencent, which has promised to offer free rein to the core video games improvement groups on the firm, in response to an individual near Wangyuan, who requested anonymity as they weren’t authorised to talk to the media.
Tencent elevated its stake in Wangyuan as a result of it’s one among China’s greatest single-player recreation builders, with strengths in aesthetics, style, and recreation storytelling, the particular person mentioned. Its enterprise mannequin – promoting video games upfront – is totally different to Tencent’s give attention to on-line and cell video games, that are downloaded totally free however monetised by in-game purchases.
Up till July 2021, Wangyuan had bought 6 million copies of the Swords of Legends franchise.
Tencent and Wangyuan didn’t instantly reply to a request for touch upon Monday.
The Swords of Legends franchise, which blends Chinese language mythology with martial arts components, is among the most well-known role-playing video games within the nation.
Individually, Tencent and Wangyuan have a partnership in Ash Echoes, a brand new title developed by a Wangyuan unit and co-published by each companies for home and abroad markets.
Tencent co-founder, chairman and chief govt Pony Ma Huateng just lately instructed an annual workers gathering that the technique of the agency's video gaming operation was to proceed increasing abroad, which he described because the “greatest shot to construct the corporate into a world enterprise”.

source