Nintendo and Tencent partnership could see Chinese games ported for US market

Over the years, Tencent Holdings Ltd. Has grown to become one of the world's most successful video game businesses. The Chinese company already owns shares with top gaming developers and companies such as Activision Blizzard, Epic Games, Riot Games and Nintendo among others. As it stands right now, aside from the titles developed or published by any of the game studios it owns a stake in, most of its first-party software is largely marketed only in China.

However, that might soon change as reports reveal plans of the multinational conglomerate developing video games intended for U.S. consumers. Sources are saying that it will be relying on the partnership it established with Nintendo to make this happen.

Earlier this year shares from the Japanese gaming company rose up to 14 per cent, thanks to speculation about increased console sales in China. Investors were reportedly viewing it as an opportunity of a lifetime.

Despite the positive outlook, the strict regulation from the government is apparently slowing down progress. Moreover, most Chinese gamers play on their smartphones or on the PC, which could see people shy away from consoles.

On the other hand, given China's massive gaming market, the potential revenue would be remarkable. The Wall Street Journal points to a commitment from Tencent to promote the Switch to Chinese consumers. According to insiders, it is looking at moving millions of units until the next system comes out.

Industry analysts likewise believe the joint venture could see iconic Nintendo characters making an appearance as a cross-over collaboration between games. Through the Kyoto-based company, Tencent hopes to publish games intended for audiences in the United States.

As of late, China seems to be clamping down on video game addiction by imposing a curfew for minors. Additionally, the Chinese government is setting a limit of how many hours one can play on a weekday, weekend and on holidays.

This new ruling will evidently have an impact on gaming revenue in the country, which is why the U.S. market appears to be the next lucrative market for Tencent. "What we want is to expand from China, and one target is console players in the U.S. and Europe," said a representative of the company.