One of the biggest video game publishers around the globe is seeking expansion beyond their home country. The Chinese internet giant which runs WeChat and has several popular games, revealed today that their cloud service has come to Japan as part of the company’s international drive for this year.
Although Tencent Cloud has already been providing service to Japan before the announcement, this will be the first officialized entry. This could suggest Tencent’s intent to hasten its global growth. Their international ambitions come at a point when Tencent’s business in their own nation is under pressure due to China’s new gaming policies.
Tencent is broadening their reach
Tencent’s cloud computing sector is looking to achieve a 400 percent revenue increase this year, and the Japanese market will play a big role in that according to Tencent Cloud’s Vice President, Da Zhiqian.
The business for Tencent Cloud makes up China’s second biggest market share at 11 percent according to the IDC. That puts Tencent behind their rival, Alibaba, which owns 43 percent of the domestic cloud market. Beyond China, the cloud computing war is only more aggressive with the likes of AWS (31.7 percent share), Microsoft Azure (16.8 percent share), and Google Cloud (8.5 percent share) in 2018.
However, Tencent might be an attractive hosting option for smaller gaming firms who hope to learn from the giants. Tencent can also benefit from their extensive global portfolio network. Two of China’s apex live streaming firms, Huya and Douyu, who are both supported by Tencent, have amplified international growth recently and they definitely require some cloud computing assistance to establish low video latency. The same applies to short-video app, Kuaishou (also supported by Tencent), which is contesting against TikTok both locally and internationally.
Smoother communication between players such as multiplayer voice chat, 3D voice positioning, and speech-to-text recognition is thanks to features supported by Tencent’s cloud engine for gaming.