GUANGZHOU – Tencent Holdings in China will play a small role in French video game studio Dontnod Entertainment for 30 million euros ($ 36.4 million) while trying to make new games popular in the Chinese market.
Dontnod has developed titles such as Life Is Strange, an adventure game that has won many fans across Asia. The French company hopes a partnership with Tencent will strengthen its base in China.
Dontnod will be able to “take advantage of the various drivers of growth in the video game industry, particularly in China and on mobile platforms, in collaboration with industry leader,” CEO Oskar Guilbert said in a statement .
Tencent is interested in harnessing Dontnod’s experience to expand the Chinese video games market, which is currently focused on shooter and role-playing games. He also took part last year in Voodoo France, a developer of so-called hyper-casual games that are simple and easy to play.
Tencent’s involvement in Dontnod is part of a 40 million euro capital increase announced Wednesday by French studio to fund the development and marketing of new games. The developer, listed on Euronext Paris, recorded an operating profit of 18 million euros in 2019.