Tencent turns to Southeast Asia after Beijing clampdown – Nikkei Asian Review
What happened: Chinese tech giant Tencent has signed a five-year deal to give Singapore-based online game-publisher Sea the right to sell its game titles in Southeast Asia. Sea previously distributed Tencent titles on a game-by-game basis. However, the new deal allows the Singapore-based company to distribute games that have not previously published in the region.
Why it’s important: Tencent’s cash cow has been gaming. However, it has run into trouble with year with increased regulation of the sector. Beijing has been cracking down on game developers and has halted the publication of new games. Earlier this year, Tencent’s profit dipped for the first time in 13 years amid the standstill. The company had previously invested in Sea and looks to expand its footprint in the region through its deal with the company amid increased regulation back home. According to a 2017 report by Niko Partners, gaming revenue in the region is set to surpass $4.4 billion by 2021.