Chinese Firm Buys Stake in Epic Games
Won't affect Epic's independence, say both companies.
Epic Games has sold a minority stake of its company to Chinese internet and telecommunications firm Tencent Holdings Limited. The Gears of War developer has stressed that it will continue to operate independently following the deal, which is expected to close within a month.
Terms of the investment were not disclosed, but such a deal could open the doors for the Unreal Engine maker to comfortably release its games in the country. China is notorious for its closed-off approach to computer and online gaming, with its government ordering the shutdown of World of Warcraft shortly after Activision Blizzard struck a deal with local company NetEase to handle the game's operations there.
So, how do game creators get their games into China, when "an apparent governmental turf war" is restricting their sale in the country? You let them get acquired by Chinese businesses, slowly and surely. But, Epic sees its sale as a positive collaboration between two international firms.
“Tencent’s investment will empower Epic to help us do even more of what we do best, which is making great games and game technology. Their expertise in the global online gaming market is second-to-none, and the opportunity to work with them to bring richer experiences to players all over the world is irresistible,” said Epic Games President Dr. Michael Capps.
David Wallerstein, Senior Executive Vice President of Tencent, chimed in; "We've developed a huge amount of respect for the Epic team for many years now, as dedicated players of Epic's games and as licensees of Epic's Unreal Engine technology... We have a lot that we can learn from each other, and we look forward to supporting the Epic team as they embark on their next phase of gaming innovation across both emerging and familiar platforms."
See the whole press release here.
Terms of the investment were not disclosed, but such a deal could open the doors for the Unreal Engine maker to comfortably release its games in the country. China is notorious for its closed-off approach to computer and online gaming, with its government ordering the shutdown of World of Warcraft shortly after Activision Blizzard struck a deal with local company NetEase to handle the game's operations there.
So, how do game creators get their games into China, when "an apparent governmental turf war" is restricting their sale in the country? You let them get acquired by Chinese businesses, slowly and surely. But, Epic sees its sale as a positive collaboration between two international firms.
“Tencent’s investment will empower Epic to help us do even more of what we do best, which is making great games and game technology. Their expertise in the global online gaming market is second-to-none, and the opportunity to work with them to bring richer experiences to players all over the world is irresistible,” said Epic Games President Dr. Michael Capps.
David Wallerstein, Senior Executive Vice President of Tencent, chimed in; "We've developed a huge amount of respect for the Epic team for many years now, as dedicated players of Epic's games and as licensees of Epic's Unreal Engine technology... We have a lot that we can learn from each other, and we look forward to supporting the Epic team as they embark on their next phase of gaming innovation across both emerging and familiar platforms."
See the whole press release here.
Companies:
Epic Games
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