Square Enix formally announced last Thursday that they would be making a strategic alliance with Chinese tech giant Tencent.
Square Enix and Tencent Holdings have both signed a letter to establish a joint-venture company. This newly formed alliance intend to co-develop “Triple-A” games based on new intellectual properties, license existing intellectual properties.
As for Tencent, this is another big gain for the Chinese company. They already own 40% stake in Epic Games, the developer of the Unreal Engine and battle-royale hit, Fortnite. In addition to that, they also own Riot Games, the studio behind League of Legends.
Steven Ma, Senior VP of the Tencent Group had this to say “We have strong expectations for this strategic alliance with Square Enix Group.”. He added that the alliance will enable the two parties to couple their broad range of internet service capabilities. He also stated that this would allow them to provide their customers with “unprecedented content experiences” on a global basis.
Square Enix says this partnership will allow them to accelerate its business development and enhance its content services worldwide. “Tencent Group and Square Enix Group share the vision of utilizing technology and creativity to deliver unprecedented entertainment experiences and services to a global audience,” says Yosuke Matsuda, President and Representative Director of Square Enix Holdings.
While there are no specific projects for the groundbreaking alliance between the two major gaming companies yet, both parties say that there is indeed much to look forward to.