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[I collect VHS tapes]

Why is Sony pouring time and money into Chinese game studios when it's obvious that Tencent is just going to buy them out once they start showing promise?

Sony doesn't even have the legal or political leverage to stop it, and Tencent has both the capital and domestic advantage to swoop in and take control after Sony does all the early lifting.

Given that Sony is suing Tencent over Light of Motiram, we have confirmation that there's no partnership or mutual respect between them. So why keep investing in a market where you stand no chance against your rival?

 

[Zacfoldor]

 

[rm082e]

Why is Sony pouring time and money into Chinese game studios when it's obvious that Tencent is just going to buy them out once they start showing promise?

Sony doesn't even have the legal or political leverage to stop it, and Tencent has both the capital and domestic advantage to swoop in and take control after Sony does all the early lifting.

Given that Sony is suing Tencent over Light of Motiram, we have confirmation that there's no partnership or mutual respect between them. So why keep investing in a market where you stand no chance against your rival?

Wukong was a defacto-PS5 exclusive and it sold tens of millions of copies. Game Science hasn't been bought by Tencent, so it seems like a win for Sony.

My impression was that Tendent had slowed down on it's investments after some didn't pan out so well. Are they still throwing money around at the same rate they were 3 years ago?

 

[I collect VHS tapes]

Wukong was a defacto-PS5 exclusive and it sold tens of millions of copies. Game Science hasn't been bought by Tencent, so it seems like a win for Sony.

My impression was that Tendent had slowed down on it's investments after some didn't pan out so well. Are they still throwing money around at the same rate they were 3 years ago?

They've arguably ramped up spending in 2025

They've also never been in such an adversarial position against Sony as they are now given the lawsuit

 

[Miyazaki’s Slave]

It's just content for the platform and user base.

Maybe Sony wants to be seen as a partner or a company that cares about "authentic Chinese experiences". If they put in the time to show "face" people in that territory will buy software for that platform instead of waiting for it to hit pc?

I just assume they are building brand recognition in the territory.

 

[I collect VHS tapes]

It's just content for the platform and user base.

Maybe Sony wants to be seen as a partner or a company that cares about "authentic Chinese experiences". If they put in the time to show "face" people in that territory will buy software for that platform instead of waiting for it to hit pc?

I just assume they are building brand recognition in the territory.

Still odd. Because Chinese law heavily restricts foreign ownership of domestic game studios, the legal environment gives Tencent a built-in advantage in acquisitions—making Sony's deep investments in Chinese developers both odd and inherently risky.

Why wouldn't Tencent swoop in if Sony manages any level of success?

 

[Miyazaki’s Slave]

Still odd. Because Chinese law heavily restricts foreign ownership of domestic game studios, the legal environment gives Tencent a built-in advantage in acquisitions—making Sony's deep investments in Chinese developers both odd and inherently risky.

Why wouldn't Tencent swoop in if Sony manages any level of success?

Did MS not do the same thing here? Sony had a very strong relationship with Bethesda and the same thing happened. They may not have been dumping resources into the company but Bethesda didn't necessarily need those like newer developers in China might.

The other thing to think about…this could actually be required of Sony based on the agreements they have with PRC.

I opened a chain of stores there MANY moons ago and the bribery and backhanded deals were something to behold.

 

[LordOcidax]

Probably because the PS presence looks like is growing really fast in China, BMW was a hit over there.

 

[I collect VHS tapes]

Did MS not do the same thing here? Sony had a very strong relationship with Bethesda and the same thing happened. They may not have been dumping resources into the company but Bethesda didn't necessarily need those like newer developers in China might.

The other thing to think about…this could actually be required of Sony based on the agreements they have with PRC.

I opened a chain of stores there MANY moons ago and the bribery and backhanded deals were something to behold.

if such an agreement existed, both Japan and China would likely make the broad terms public, since it would involve cross-border investment commitments subject to oversight in both countries

 

[Project EVE]

It's not just Chinese studios................

Tencent own 35% of Shift UP but that doesn't stop Sony pouring time and money into them

It's because Sony is just nice like that, truly a gaming industry best friend if you studied the gaming history starting from PS1

 

[Kacho]

Sony is trying to get a foothold in China since there's a ridiculous amount of money to be made there. Just like Hollywood.

 

[yurinka]

Why is Sony pouring time and money into Chinese game studios when Tencent can just buy them whenever?

Because the partnerships with these Chinese companies -and Tencent too- provides Sony revenue and profit and helps them grow in Asia (particularly China, the top grossing country in gaming).

Having this or that investor or owner doesn't make Sony earn less money with their 2nd or 3rd party games, tools or platforms.

If something, their location in China helps make this investment to be cheaper -so less risky- than when the external team is from California or similar.

Given that Sony is suing Tencent over Light of Motiram, we have confirmation that there's no partnership or mutual respect between them.

Tencent and Sony are key partners for each other in multiples areas of gaming, movies or music.

This case may shake a bit the relationship between them in mobile gaming, but they will continue partering and making business with each other in all areas as if nothing happened basically because they're the best or only option for each other in certain areas.

Both directly between them including their subsidiaries and also with the companies where each one invested.

 

[Embearded]

I am a PS fan since 1998. I have no idea why is Sony doing whatever they are doing these days.
It's a big mystery to me.

 

[Miyazaki’s Slave]

if such an agreement existed, both Japan and China would likely make the broad terms public, since it would involve cross-border investment commitments subject to oversight in both countries

Speaking from actual experience (though retail distribution and sales agreements NOT video game development) this is was not the case (disclosure) when we did our work there.

Maybe it's different for games or maybe things have significantly changed in 15+ years…dunno. Just sharing my guess based on previous exposure.

 

[I collect VHS tapes]

Speaking from actual experience (though retail distribution and sales agreements NOT video game development) this is was not the case (disclosure) when we did our work there.

Maybe it's different for games or maybe things have significantly changed in 15+ years…dunno. Just sharing my guess based on previous exposure.

I don't doubt your experience or knowledge. At the same time I'm incredibly skeptical that a company like Sony could have commitments to invest in China without being public knowledge or shared with potential stakeholders

I'm too lazy to google or ask AI tho

 

[Loomy]

Companies that respect each other sue each other all the time. It's rarely ever personal.

Sony is looking to build brand mindshare in the region and develop relationship with developers. That's worth the investment.