I spent the whole time editing this podcast on a yoga ball. So Gabe, I get you.
It’s no secret that Tencent, the Chinese based holding company, is interested in video games. They already own big hitters like Riot Games, who make League of Legends, and Supercell, who make mega mobile hit Clash of Clans. Then there are their smaller investments like 12% in Activision/Blizzard and 5% in electric car company Tesla. Tencent has their money in a lot of markets and they recently grew that reach a bit more by buying a 9% stake in Frontier Developments, maker of games like Elite Dangerous and Planet Coaster.
For Frontier this is a pretty significant investment. They’ve been developing games for decades and will now have a strong connection into the ever growing Chinese video game market. Since Frontier has mainly developed on the PC in recent years, their products won’t be hindered by China’s now defunct console ban and they can immediately start growing an install base.
For Tencent this means they have yet another accomplished developer at the ready. Frontier might be making their dollars off the PC as of late, but they still have a lengthy history on consoles as well. Frontier made Kinectimals and Zoo Tycoon for the Xbox Kinect and Xbox One respectively and could bring an easier relationship with Western console manufacturers, a market Tencent has yet to completely conquer.