Chinese internet goliath Tencent aims to top US$13 billion esports league with killer games and shows
The Chinese firm is in the unique position of owning and backing signature titles such as League of Legends and Fortnite, plus a distribution channel anchored by its billion-plus WeChat users
The screams of 18,000 people packed into a Shanghai stadium swell to a crescendo. Slight of figure and mostly bespectacled, 10 young men take their seats in LED-lined boxes straight out of Tron, don headsets, lock thumbs onto giant smartphones – and the battle begins. At stake, a US$1.8 million purse – and social media goliath Tencent’s role in a US$13 billion esports arena.
Esports is taking off globally but nowhere more so than in China: a nation of over 400 million gamers fuelling viewership comparable to US pro sports. At the heart of the world’s biggest gaming market is Tencent Holdings Ltd., which is betting a billion yuan ($150 million) a year that slugfests like Honour of Kings will ensure its primacy in the burgeoning market.
Along with Activision Blizzard Inc., Tencent’s become one of the most aggressive promoters of pro-gaming. It’s hard to overstate the mania that’s gripped China in particular: at least 10,000 teams exist across the country despite just 12 spots in this year’s marquee King Pro League tournament. Last year’s matchups garnered as many as 240 million daily views – double the US audience of the Super Bowl – on TVs, phones and computers with top players commanding multimillion dollar transfer fees.
And as the International Olympic Committee considers including esports in its ever-expanding roster, pro-gaming is an endeavour in which China is a prime contender.
“Esports is entering a golden age in China and globally,” said Cheng Wu, the Tencent vice-president overseeing its efforts after stints at Google and P& G. “It’s one of those few areas where China has a real chance of coming out on top to compete with developed countries.”
Tencent isn’t the only one that’s cottoned on. From Walt Disney Co. to Amazon.com Inc. and Electronic Arts Inc., some of the world’s largest media giants are vying for a slice of the pie, inking deals to air esports on ESPN or creating leagues, including Tencent’s own Riot Games Inc. But the Chinese firm’s in the unique position of owning and backing signature titles such as League of Legends and Fortnite, plus a distribution channel anchored by its billion-plus WeChat users. Through rare interviews with Tencent executives, the social media titan outlined its strategy for dominating competitive gaming.