Capcom may enter Chinese market via Tencent Holdings partnership

#1
Thanks to duckroll for reading the original article and finding this English article.

This is what was originally reported as "Capcom buying Tencent" (lol, Tencent is approximately 150 times larger than Capcom by market cap) and "Tencent buying Capcom".

e27 said:
News broke out recently that the Japanese game developer Capcom could potentially be buying shares of Chinese companies. According to a report on Chinese news site 17173, Capcom has been in substantial negotiations with Tencent Holdings, and may have reached a deal. If this news is true, then it would appear that Tencent would continue to be an entertainment gold mine for foreign companies.

[Note: The Chinese article has been updated and it seems to be a share swap of stock. Keep in mind that Tencent is 150 times larger by market cap than Capcom, so it's not going to be a controlling share here.]
e27 said:
Tencent has invested in more than 10 overseas companies, with the biggest investment going to American game company Riot Games, owner of the highly popular League of Legends series, which also has a large following in China. At the end of 2011, it had invested US$3.94 billion (RMB24.4 billion) and received 92.78 per cent equity in Riot. In 2012, Tencent received an undisclosed amount of shares from Epic Games, famous for its Gears of War and its Unreal engine.
e27 said:
With possible news of a partnership between the two giants, Tencent could receive a large boost for its latent giant of an empire in the future with Capcom properties such as the Resident Evil and Street Fighter series. The latter may need to figure out its mobile gaming plan though, as the free-to-play market is big in China.
Source: http://e27.co/capcom-may-enter-china-market-via-tencent-holdings/
 

Chacranajxy

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Oct 13, 2008
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#2
I mean, Tencent's been doing well, obviously, but why would Capcom try to piss away what little they have left of themselves like this? The games Capcom produces would change to cater to the Chinese market, and we know they're willing to take huge gambles on markets they know nothing about (read: dumping all their money into mobile last year.)

*thinks about the last 8 years of Capcom*

Nvm, go ahead and die a dog's death.
 
Jun 7, 2004
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#6
I mean, Tencent's been doing well, obviously, but why would Capcom try to piss away what little they have left of themselves like this?

*thinks about the last 8 years of Capcom*

Nvm, go ahead and die a dog's death.
What exactly are they pissing away? Capcom wants to expand further into the growing Chinese market, like any other multinational company. It's called business. In order to have substantial reach in China's industries, you generally need to be partnered with existing Chinese companies, because that's how things work there.
 
Jun 13, 2012
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#7
What exactly are they pissing away? Capcom wants to expand further into the growing Chinese market, like any other multinational company. It's called business. In order to have substantial reach in China's industries, you generally need to be partnered with existing Chinese companies, because that's how things work there.
Especially with Japanese companies.
 

Chacranajxy

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Oct 13, 2008
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#8
What exactly are they pissing away? Capcom wants to expand further into the growing Chinese market, like any other multinational company. It's called business. In order to have substantial reach in China's industries, you generally need to be partnered with existing Chinese companies, because that's how things work there.
Yes, and to have substantial reach, they'd need to move towards the sorts of games that are succesful in China. Ie: f2p.
 

Parakeetman

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Feb 22, 2012
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#9
What exactly are they pissing away? Capcom wants to expand further into the growing Chinese market, like any other multinational company. It's called business. In order to have substantial reach in China's industries, you generally need to be partnered with existing Chinese companies, because that's how things work there.
Hey duckroll this has been like not really a rumor, but in talks for quite some time right? So now its going to be actually official it seems? Interesting if so but makes sense. And exactly what you said here is pretty much the truth from what I understand about business in China from non-gaming related business talks from various reliable sources who do high profile business within China on a regular basis.
 
Jun 7, 2004
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#10
Yes, and to have substantial reach, they'd need to move towards the sorts of games that are succesful in China. Ie: f2p.
Move towards? Capcom already does tons of f2p and online stuff. That's what they want to market and sell in China. Tencent is the developer of Monster Hunter Online. Maybe you don't realize that Capcom does more than just traditional console games? Obviously they're not looking to invest heavily in China just to sell RE7.

Hey duckroll this has been like not really a rumor, but in talks for quite some time right? So now its going to be actually official it seems? Interesting if so but makes sense. And exactly what you said here is pretty much the truth from what I understand about business in China from non-gaming related business talks from various reliable sources who do high profile business within China on a regular basis.
It's only a rumor in the sense that it's not officially announced. There are no specifics of what the deal could be, other than it probably involving some sort of share exchange or purchase, and that Tencent is the partner Capcom is going for in China. But yes, I think the Chinese business press has been aware for a while now that Capcom has been in talks to invest into the China market in a serious way.
 

Chacranajxy

I paid good money for this Dynex!
Oct 13, 2008
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#12
Move towards? Capcom already does tons of f2p and online stuff. That's what they want to market and sell in China. Tencent is the developer of Monster Hunter Online. Maybe you don't realize that Capcom does more than just traditional console games? Obviously they're not looking to invest heavily in China just to sell RE7.
I'm well aware of that. But if the Chinese market is as hugely profitable as they suspect it is, that's only going to promote focusing more on those sorts of titles and less on traditional ones.

I admit, I'm kinda jumping the gun here, but I find it hard to see this move as anything but worrying. If their F2P games are successful in China, that kinda deadens the incentive to chase the AAA or even AA console model.
 

Parakeetman

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Feb 22, 2012
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#13
Move towards? Capcom already does tons of f2p and online stuff. That's what they want to market and sell in China. Tencent is the developer of Monster Hunter Online. Maybe you don't realize that Capcom does more than just traditional console games? Obviously they're not looking to invest heavily in China just to sell RE7.



It's only a rumor in the sense that it's not officially announced. There are no specifics of what the deal could be, other than it probably involving some sort of share exchange or purchase, and that Tencent is the partner Capcom is going for in China. But yes, I think the Chinese business press has been aware for a while now that Capcom has been in talks to invest into the China market in a serious way.
Thanks for the reply its appreciated.

Anything to bring more money into the company is a good thing and if Capcom can do this by partnering up with Tencent to move into the massive Chinese market by all means they really should. Better make some money with your own IPs or domestically (within China) made ones, than make none and just have some other company rip off your IPs and profit off of it without you.
 

Parakeetman

No one wants a throne you've been sitting on!
Feb 22, 2012
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#15
I mean, Tencent's been doing well, obviously, but why would Capcom try to piss away what little they have left of themselves like this? The games Capcom produces would change to cater to the Chinese market, and we know they're willing to take huge gambles on markets they know nothing about (read: dumping all their money into mobile last year.)

*thinks about the last 8 years of Capcom*

Nvm, go ahead and die a dog's death.
 

Parakeetman

No one wants a throne you've been sitting on!
Feb 22, 2012
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#17
Im guessing that Tencent then crushed the shit out of that MH literal ripoff Hunter Blade then? Since they are behind the official Chinese one they are working on.
 
Feb 3, 2013
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#18
You know the story where people want Japanese companies to put games on PC/Steam because of the sales? Well, they did, technically. In a way better financial option by focusing on China, you got to partner with Tencent if not kiss that thought goodbye.

The sad thing everyone who wants a ENG version of said game will have to pray.
 

L~A

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Jan 19, 2013
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#19
Ha ha. So that's Tancent buying Capcom, heh? This is why you don't make threads based on Google Translate stuff. Let alone write news, like I've seen a couple of websites do.

Smart move from Capcom, but I hope it won't much of an impact of their other "traditional" games.
 
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#21
Its going to be interesting to see if more japanese publishers go a similar route and how this works out for Capcom. My guess its going to do really well for them.
 
Jun 18, 2011
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#29
Im guessing that Tencent then crushed the shit out of that MH literal ripoff Hunter Blade then? Since they are behind the official Chinese one they are working on.
Tencent owns a lot of rights for different things nowadays.

They have the Naruto-rights for China, Heroes of Newearth, they boug Riot Games, own a lot of Epic Game Shares, have the NBA and Fifa rights, Call of Duty rights and some other rights of popular franchises.
 

Parakeetman

No one wants a throne you've been sitting on!
Feb 22, 2012
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#30
For those not familiar with what hunter blade is

https://www.youtube.com/watch?v=cgIElFGQGS8
https://www.youtube.com/watch?v=CYEtzr9-pQ8
https://www.youtube.com/watch?v=s-am9EuH7Zc
https://www.youtube.com/watch?v=8tlRHYO4Oz4
https://www.youtube.com/watch?v=6kAzGCrzkgI

If you see this, it will make a bit more sense as to why I mentioned if TenCent has gone and stomped those guys into the ground with them being the official MH distributor in China. After poking around apparently they are shutdown lol.
 
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#32
Good move by Capcom, Tencent really is one of those giants in the Chinese markets. I'm a little worried about the MH game though, Blade and Soul took forever to launch and then it turned out that all those people with an Win 8.1 OS had to wait several months before they could play the game.