Chinese studios are investing massively in Europe

Chinese game developers are investing billions in European companies. However, analysts are anxious that it could have an impact on the long run unless regulators start taking actions.

Beijing has been doing a huge crackdown on the tech industry, including the video game sector. This has heavily impacted the industry. Tencent, the world’s biggest gaming company by revenue, has even experienced its first-ever quarterly loss in August 2022.

As such, several developing studios are looking at overseas companies for investments. Tencent, for example, has acquired Finnish firm Supercell in 2016 while its rival, NetEase has recently announced the acquisition of French studio, Quantic Dream. This hegemony of China within the gaming industry could, on the long run, be detrimental to the field in case of an economic downturn or political upheaval.

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