Authorities flip switch for Tencent gamer move
Print Edition
Tencent has won a key approval to start selling the Nintendo Switch in China, paving the way for the console to enter the world鈥檚 largest video games market two years after it was first released worldwide.
Authorities in the southern Chinese province of Guangdong gave the green light yesterday to Tencent Holdings to distribute the Nintendo Switch console with a test version of the 鈥淣ew Super Mario Bros U Deluxe鈥 game, a statement on the government鈥檚 website showed.
The need to navigate regulations and the search for a local partner have hampered Japanese gaming company Nintendo鈥檚 efforts to bring its hybrid home-portable Switch console to China, holding back the development of console gaming there.
鈥淟aunching the Nintendo Switch in China is a massive opportunity for both Nintendo and Tencent,鈥 said Gu Tianyi, market analyst with gaming industry analytics firm Newzoo, adding that other consoles, PlayStation and Xbox, have struggled to catch on in China.
鈥淲hat sets Nintendo apart, however, is that its intellectual property roster 鈥 including Mario, Zelda and Pokemon 鈥 is already extremely popular in the market. What鈥檚 more, the mobile aspect of the Switch is a great fit for China鈥檚 mobile-first culture.鈥
Tencent has to apply for approvals from authorities in Guangdong, where the company is registered. Two people familiar with the matter said the approval by the Guangdong culture ministry would allow the Switch to be sold nationwide. Tencent did not immediately comment.
It has teamed up with Nintendo in the past, with Tencent releasing its 鈥淎rena of Valor鈥 game overseas on the Switch. A spokesman for Nintendo 鈥 which has sold more than 32 million Switch units globally since its launch just over two years ago 鈥 said Tencent had applied to Guangdong authorities for approval to sell the Switch console.
The statement on the website of the Guangdong Provincial Department of Culture and Tourism listed over 100 game devices, including arcade machines, that it was approving for sale.
The approval also comes as industry leader Tencent tries to recover from a lengthy video game approval freeze in China last year, which has put pressure on shares of the company and other gaming-related stocks.
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