Tencent wants to reach new markets in the US and Europe, and they hope that Nintendo will help them with their plans.
Nintendo and Tencent already have some history together, specifically a partnership to get the Switch into China and helping to localise games. But the Chinese government has a tendency of throwing a wrench right into every single plan Tencent has, and continuing that trend, a curfew for gamers under 18 has been announced.
It comes as no surprise that Tencent is looking for ways to branch out towards markets outside of China. Tencent hopes that developing games with Nintendo’s iconic characters will help them gain popularity with US and European gamers.
“What we want is to expand from China, and one target is console game players in the U.S. and Europe,” said a Tencent official talking to The Wall Street Journal. “We hope to create console games with Nintendo characters, and learn the essence of making console games from Nintendo engineers.”
The primary goal are console games, because Tencent already has the mobile market under control and they consider the games Nintendo made for mobile are “not constructed to make people pay a lot of money”.
Making comments like that is definitely not going to win over console gamers which already hate the monetization schemes most modern games use today. Besides the monetization, western gamers in general aren’t happy when Tencent is mentioned.
The predictions for Switch sales in China aren’t the greatest - Tencent promising “a few million” consoles sold during its life cycle, which is rather weak considering that more than a million were sold in the US in the previous quarter. Nintendo should be wary of a partnership with Tencent, especially since the talks are about using their IPs.