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WSJ: Nintendo Surges on Prospect of Access to China, possible partnership w/ Tencent

Tripon

Member
For all its global popularity, Nintendo Co. NTDOY 6.06% has had relatively limited business in China. Now, a deal with Tencent Holdings Ltd. TCEHY -1.16% has investors excited at the prospect of the Japanese company’s Switch console and smartphone games taking off in one of the world’s biggest game markets.

Nintendo shares shot up 7.1% to a nine-year high Tuesday on word that one of China’s most popular videogames—Tencent’s “Honor of Kings”—will be available on the Switch this winter. The game is called “Arena of Valor” in Europe, where it was introduced in August; a U.S. launch under that name is set for later this year.

People familiar with Nintendo’s thinking said it has been looking for ways to expand in China and sees Tencent as a possible partner, although they cautioned that nothing is in place yet. They said Nintendo looked at selling its Wii U console in China but dropped the plan.

https://www.wsj.com/articles/nintendo-deal-with-tencent-paves-way-for-china-push-1505825294
 

Tripon

Member
It's not even on anything official, just speculation.

I mean, the game exists. I guess investors see China as the ultimate nut to crack for non-domestic companies like Nintendo, Sony and Microsoft. First one to do it is going to make a lot of profit.
 

Aters

Member
China alone can make some game nobody heard about the third or forth biggest game in the world. The market is nothing to joke about. Nintendo's success in China? I'm not sure. They are way too slow compared to Sony and Microsoft.
 
China alone can make some game nobody heard about the third or forth biggest game in the world. The market is nothing to joke about. Nintendo's success in China? I'm not sure. They are way too slow compared to Sony and Microsoft.

That's what Tencent would be for.
 
I can't imagine Sony or MS waiting around if Nintendo plans to partner with Tencent to move into China. Surprised we haven't heard those two talk to Tencent at all actually unless I missed something.
 

bchan555

Member
The Chinese gaming market is HEAVILY influenced by PC and mobile. Even though grey market consoles have been easily bought for YEARS there, the vast majority still play on PC or phones. Even if Switch releases in China, it won't make as big a dent as some people think it will. I think console gaming missed its window in China in terms of mass market saturation is concerned.

People are too used to doing everything through their phones (their phone usage is heavier than the west) and those who are interested in big gaming titles are already used to playing in internet cafes or already have a rig. Switch's price alone will keep away a large segment of people, though some will obviously pick it up -- and the people who are hardcore gamers that want one have probably already bought one.
 

massoluk

Banned
China alone can make some game nobody heard about the third or forth biggest game in the world. The market is nothing to joke about. Nintendo's success in China? I'm not sure. They are way too slow compared to Sony and Microsoft.
Is it? Not the first time they collab with local to release console in China.
 
Good. With Nintendo addressing China properly, people might finally aware that there's a giant market for video games in the East.
 

Fukuzatsu

Member
Do the other consoles have a popular MOBA like Arena of Valor?
They don't (in terms of the only realistic equivalents Dota and LoL), but the 'popular MOBA' everyone is getting hot over hasn't exactly busted the charts in Europe, and is currently being outperformed by Mobile Legends, a very blatant ripoff which has gotten worldwide release. This reputation of millions of players is almost entirely from Chinese-speaking parts of the world, the version coming out on Switch is not the same thing and in all likelihood won't even have crossplay with the Chinese playerbase (it couldn't without major changes).

This is something a lot of people keep ignoring in this chat of "Nintendo could break into China, they're getting this big Chinese MOBA".

Also worth noting that PS4 has been out in China since 2015, and this has not exactly catapulted their sales (though you shouldn't expect it to). Game approval is incredibly strict and while Sony has been putting in legwork at events like ChinaJoy, it's not as easy as it sounds. The video game market is very different, and buying full games at the prices you do in other territories is not especially common.
 

Mario007

Member
Not sure why people over here would want to buy the Switch when they can play Honornof Kings on their phones. In facts, that's what they're doing already and are super happy with it.

On top of that Switch isn't even that demanded in the grey market where its pretty much all ps4. In fact china is probably one of the few countries where one could walk in and get a switch eversince it launch.
 

Trrzs

Member
If they can't keep the Switch stock in the territories they are actually operating, I can't imagine how worse the situation will turn if they start to sell in China.
 

Darknight

Member
If they can't keep the Switch stock in the territories they are actually operating, I can't imagine how worse the situation will turn if they start to sell in China.

Isnt there a limit they can sell a year? I thought Sony and MS can only sell certain amounts.
 

Mario007

Member
Welcome to "people who have only heard of this game from the Switch direct", part 27494.
Yup, yeah let me buy this thing for 2800rmb that can play a modified version of the game my friends are playing on their phones and thus I won't be able to play it with them. Or let me get a Vivo, Oppo, Xiaomi or Huawei with flagship specs and play with my friends. Tough choices.
 
Yup, yeah let me buy this thing for 2800rmb that can play a modified version of the game my friends are playing on their phones and thus I won't be able to play it with them. Or let me get a Vivo, Oppo, Xiaomi or Huawei with flagship specs and play with my friends. Tough choices.

That does beg to question, I wonder if they'll try and make it crossplay with mobile.
 

Fukuzatsu

Member
Yup, yeah let me buy this thing for 2800rmb that can play a modified version of the game my friends are playing on their phones and thus I won't be able to play it with them. Or let me get a Vivo, Oppo, Xiaomi or Huawei with flagship specs and play with my friends. Tough choices.

Oh yeah, and those heroes you were learning? Mozi, or Li Bai? Maybe Mulan? Not in this game, tongzhi. And unless you can convince all your buds to buy a Switch with you you'll be matching with randoms.
 

Tripon

Member
Honor of valor will be free to play
No way they offer a paid version unless it comes with virtual currency.
 

Fukuzatsu

Member
That does beg to question, I wonder if they'll try and make it crossplay with mobile.

The mobile version of Arena of Valor? Sure, maybe with some considerations for control differences, seems feasible enough.

I can't see how they could do crossplay with Honour of Kings unless they either combined both rosters (leading to a lot of overlap) or did a huge game overhaul (seems unlikely).
 

jetsetrez

Member
I really hope this doesn't lead to Tencent trying to buy a stake (or more) in Nintendo. They already own Riot and have a stake in Activision Blizzard. Nintendo is one of Japan's national treasures, and I really don't want Tencent owning half the gaming industry.
 

rudger

Member
I really hope this doesn't lead to Tencent trying to buy a stake (or more) in Nintendo. They already own Riot and have a stake in Activision Blizzard. Nintendo is one of Japan's national treasures, and I really don't want Tencent owning half the gaming industry.

I'm fairly certain that Nintendo themselves owns the majority of their shares, but somebody please correct me if I am wrong. i.e. Nintendo would ultimately have to agree with the purchase in order for Tencent to own them - they cannot do it by merely purchasing shares on their own.
 
I'm fairly certain that Nintendo themselves owns the majority of their shares, but somebody please correct me if I am wrong. i.e. Nintendo would ultimately have to agree with the purchase in order for Tencent to own them - they cannot do it by merely purchasing shares on their own.

Tell that to Ubisoft.
 

Cerium

Member
I really hope this doesn't lead to Tencent trying to buy a stake (or more) in Nintendo. They already own Riot and have a stake in Activision Blizzard. Nintendo is one of Japan's national treasures, and I really don't want Tencent owning half the gaming industry.

I don't think the Japanese government allows hostile takeovers by foreign corporations.
 
Tell that to Ubisoft.

Two things.

1. Ubisoft doesn't own the majority of shares in the company. Vivendi is currently the largest single shareholder, at around 26%.
2. I believe the Japanese government makes it difficult for foreign companies to purchase domestic corporations via hostile takeover, but I could be wrong about this.
 

Bizzquik

Member
130 million here we come.

All this for a console you can take on the go...with Link and Mario every ~4 years?

I mean, I'm loving Breath of the Wild and have literally owned every Nintendo console ever made...but I just don't think its infinitely better than my Wii U, one of the most under-appreciated pieces of consumer electronics hardware of the last decade.
 
All this for a console you can take on the go...with Link and Mario every ~4 years?

I mean, I'm loving Breath of the Wild and have literally owned every Nintendo console ever made...but I just don't think its infinitely better than my Wii U, one of the most under-appreciated pieces of consumer electronics hardware of the last decade.

Well, the market certainly does.
 

Xe4

Banned
All three companies have been trying to access China for a while now, all to limited success. I don't see this being any more effective than what Sony and Microsoft have tried.
 
I don't think the Japanese government allows hostile takeovers by foreign corporations.

Two things.

1. Ubisoft doesn't own the majority of shares in the company. Vivendi is currently the largest single shareholder, at around 26%.
2. I believe the Japanese government makes it difficult for foreign companies to purchase domestic corporations via hostile takeover, but I could be wrong about this.

The hurdles to do it have been lowered somewhat back in 2007, but yes. Typically the government will make it harder for a hostile takeover to happen to an unwilling Japanese company. It's more likely to occur if shareholders want it, and almost none of them do.
 
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