Tencent is a Chinese technology conglomerate founded in 1998. It is one of the top 10 public corporations globally, by market cap, and is one of the world’s largest venture capital and investment firms. Tencent’s success is at least partially attributable to WeChat and QQ, which are two of the largest social messaging platforms globally (despite being used primarily in China). It is also the largest gaming company in the world by revenue, having generated games revenue of $19 billion in 2018.
China’s games market was rocked by a temporary game license approval freeze between April 2018 and December 2018, which led to Tencent reporting its first profit decline ever. Despite this, the company has been able to weather the storm and maintain its leadership position. This report describes the bold strategy for games that Tencent has disclosed.