Capcom in Negotiations with Tencent Holdings, Partnership Could Be on the Horizon

By on April 14, 2014 at 10:08 am
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The future is looking a little brighter for Capcom, as the company has recently been in discussions–possibly already reaching a deal–with Tencent Holdings about a collaboration, according to e27.

Tencent, one of the primary players in China’s internet and gaming industry (it made a profit of 15 billion yuan in 2013), has been investing overseas, particularly gaming companies. According to minyanville, Tencent paid $400 million in 2011 to acquire Riot Games, creator of League of Legends. (It currently owns 92.78 percent of its equity share.) In 2012, Tencent bought a minor stake in Epic Games, creator of the Gears of War franchise. It also partnered with Activision Blizzard later that year to bring Call of Duty online to China.

An extension into the Chinese market could very well be a boost for Capcom. Active players of League of Legends nearly tripled between August and November 2011 shortly after Tencent’s purchase, jumping from 4 million to 11.5 million. While Capcom’s key franchises might not see such drastic jump, the possible partnership with Tencent will only aid the Japanese company with the release of Ultra Street Fighter IV on the horizon.

What do you think about this possible collaboration? May these benefits possibly trickle down to the fighting game community? Leave your thoughts in the comments below.

Source: 17173 via e27 and NeoGAF

  • BlackMasamune

    Is this the same company that made that KOF knockoff?

    • Aojiroi

      internet service portal

    • Rahavic

      They the ones that still run DnF in China which I played for a while cuz US market doesn’t understand how good that game is/was.

  • Street Fighter MOBA Lets go Esports!!

    • Yadiel Báez (篠田)

      Dude, what does a firm of investors have to do with making a SF MOBA? /headesk.
      Tencent has multiple deals with multiple gaming companies, they just finance x company and later receive their share. They don’t care about things like that.

  • Tencent definitely has the free cash to outright purchase Capcom and I highly doubt they’ll just take a small stake in the company. My guess is they’ll take the Riot route and acquire a controlling stake of Capcom. With that being said, I doubt that their acquisition will be as passive as the Riot purchase. I wouldn’t doubt it if there was a major shaking up of the upper leadership at Capcom and the company would be drawn a different direction, hopefully in a good way (no need to preach to the choir on this one). At first I thought that this “partnership” would be a bad thing but the more I think about it, the more I realize this is probably the exact thing Capcom needs.

    • John Doe

      You realize they could just be – and probably are – buying the licence to make a game for Chinese market, right?

      • It’s possible but I’m still leaning towards acquisition.

        Only time will tell.

    • pablofsi

      Could this be the reason the community manager left? :p

  • k.b.a.

    Oh mein gott. The sprite dream will stay dead. I’m ok with them gussing up plasma sword which is totally not star wars

  • Doppio1089

    I really hope for a localized KOF-ripoff.

  • Michael Gacillos O’Hair

    From the Wikipedia:

    “Tencent Holdings Limited (Chinese: 腾讯控股有限公司; SEHK: 700) is a Chinese investment holding company whose subsidiaries provide mass media, entertainment, Internet and mobile phone value-added services, and operate online advertising services in China. Its headquarters are in Nanshan District, Shenzhen.”

    “Tencent’s diverse services include social networks, web portals, e-commerce, and multiplayer online games. Its offerings include the well-known instant messenger Tencent QQ and one of the largest web portals in China, QQ.com. Mobile chat service WeChat has helped bolster Tencent’s continued expansion into smartphone services.”

    Advertising in new markets is never a bad thing.
    PC releases?
    Okay… cool.
    But more mobile garbage?
    If Capcom wants to bury themselves that badly, maybe we should start sending them bags of dirt.

  • RunningWild1984

    Ryu and Chun Li coming to Xuan Dou Zhi Wang, you heard it here first folks.

    • pablofsi

      Their gameplay is wildly less complex though… and Ryu looks funny while running.

    • Magegg

      There’s already Ryu in this game:

      Wouldn’t care about Guile 😉

  • NoobSmoke

    A real Devil May Cry sequel

  • Tom Henn

    Capcom is doing well enough to build a couple of new buildings.

    http://www.capcom.co.jp/ir/english/news/html/e140414.html

  • J.D SRK

    I’m all for a F2P Street Fighter 5

  • chicknwaffls

    change up the leadership or else you are going to get games like Lost Planet 4: How’d we get here, or Remember Me 2: Get to Know Me First.

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  • Michael Gacillos O’Hair