China’s Tencent joins Japanese developer of Final Fantasy to produce original games for global market

Internet giant Tencent Holdings has forged a strategic alliance with Japanese game company Square Enix to develop original games as the Chinese company continues its overseas expansion amid a regulatory crackdown at home.

The two companies will jointly develop so-called AAA titles, games with the highest budgets and marketing resources, based on original intellectual property, Tokyo-based Square Enix said on Thursday. The alliance will include the establishment of a new joint venture between the partners as well as cross licensing of existing intellectual properties.

“We have strong expectations for this strategic alliance with Square Enix Group,” Steven Ma, senior vice-president of Tencent, said in a statement. “The alliance will enable us to couple our broad range of internet service capabilities to Square Enix Group's superb creativity, and provide our customers with unprecedented content experiences on a global basis.”

Tencent did not immediately respond to a request for further comment.

Square Enix is the developer of Final Fantasy, which has sold over 141 million copies internationally, as well as other popular titles including Dragon Quest and Tomb Raider. The alliance represents Tencent’s latest move into the international game industry. The Chinese company also holds a 40 per cent stake in the US studio Epic Games, and announced earlier this year plans to launch the hit game Fortnite in China.