Company presentation for EECS 441, on Tencent

1. Brian Nackoud (BNACKOUD)

2. Current Markets

3. Why Tencent?
 Has LARGE amounts of stock in western made games now as well

4. Products
• Loads of games in China
• Development of Western
games as mobile games

5. Persona?
Games meant for:
 Addictive personalities
 People with deep pockets

6. PC Gaming
 Previously mentioned Western companies (Riot, Activision-Blizzard, Epic)
 One thing in common after acquiring a large share…

7. Business Model: LOOT BOXES
Cosmetic Pay-to-win

8. The Secret Sauce…
 Keeps on developing “new” mobile games
User experience stays fresh to a certain extent
Very effective in getting people to spend

9. Is Slowly Expiring

10. Profitable?
 Profits are on the decline
 Overtook Facebook market cap in
2017 at $500B
 Now at $400B

11. But why?
 Main Market is still China
 China Gov. crackdown on game addictions

12. History
Tencent
launched
its first
product: a
messenger
First mobile
game is
developed
Starts to
license
games
other
developers
Tencent
buys Riot
Games
China starts
to regulate
game
licensing
Loot box
removal bill
introduced in
Senate

13. Competitors
Tencent NetEase Bandai Namco
Mobile Games
Console Games
PC Games
Social Platform

14. Tencent’s Future –
They’ll Make it
• Strict decline in gaming
revenue
• Social media/ communications
as its saving grace
• Started dabbling in AI, cloud,
and quantum computing

15. References
https://www.pcgamer.com/us-loot-box-ban-bill-gains-bipartisan-support-in-the-senate/
https://www.tencent.com/attachments/ResultsPresentation2Q18.pdf
https://www.pocketgamer.biz/asia/comment-and-opinion/68648/the-curious-tale-of-how-lineages-mobile-release-shook-up-
and-didnt-south-korean-gaming/
https://www.reuters.com/article/us-king-digital-tencent-hldg/tencent-launches-candy-crush-game-in-china-
idUSBREA3F0JV20140416
http://www.businessofapps.com/data/wechat-statistics/
https://www.riftherald.com/culture/2019/5/22/18635799/league-of-legends-mobile-riot-games-tencent
https://singularityhub.com/2018/08/17/baidu-alibaba-and-tencent-the-rise-of-chinas-tech-giants/