Tencent has Invested in Grinding Gear Games

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User Info: Didjeridu

Didjeridu
5 months ago#11
Never heard of them, so I'll have people's word (players, not PR BS) regarding their reputation. Doesn't sound good to me, but we'll have to wait and see how it turns out.

User Info: infinitexx

infinitexx
5 months ago#12
You may not have heard of Tencent itself, but you're almost certainly familiar with a lot of studios they own. They're a gigantic holding firm (not just video games, they own all sorts of things).
You can't make an omelette without crushing dozens of eggs beneath your steel boot and then publicly disemboweling the chickens that laid them as a warning.

User Info: kbe2k2

kbe2k2
5 months ago#13
Tencent has their claws in everything. I won't feel bad about freeloading now, days of buying $60 supporter packs ever league to help GGG are finished now that they have a significant backer.

User Info: Ryyaann_Is_Band

Ryyaann_Is_Band
5 months ago#14
Another thing I realized - the chinese version of Diablo 3 has had XP boosts for years now whereas the regular version never got them. So hopefully a similar thing happens.

kirbymuncher posted...
I've seen a lot of anti-tencent sentiment from chinese people recently. hopefully whatever they're doing that's so bad stays confined to chinese games <_<


Really? I know they just released the mobile version of PUBG recently and it's been getting a ton of praise because it has a bunch of features that even the PC version doesn't have yet. (end of match stat tracking, shooting range, etc)

xenast posted...
Not worried, League or Legends seems to be doing just fine under Tencent


Agreed. Both LoL and Fortnite are the biggest games in the world right now and they have Tencent backing them, so it should be interesting to see what PoE can do with a Tencent budget. This s*** sounds like on the level of an engine overhaul or something crazy like that.

Didjeridu posted...
Never heard of them, so I'll have people's word (players, not PR BS) regarding their reputation. Doesn't sound good to me, but we'll have to wait and see how it turns out.


The thread was crossposted on the PCGaming subreddit (so less of a PoE bias there), and it definitely puts me at ease from the stuff I've been reading regarding how they typically don't touch anything:
https://www.reddit.com/r/pcgaming/comments/8kxef8/tencent_has_invested_in_grinding_gear_games_path/?st=jhgk13ig&sh=5abf53fa

[–]AlexanderDLarge 4 points
This gives them tons of financial security. Tencent is pretty hands off and they're a massive company. One of the biggest in the world.

[–]field_marzhall 8 points
You might not be convinced but there is a history already for EPIC Games, riot games, and other major game studios who have not changed their management or direction outside of china.

[–]Isaacvithurston 31 points
Tencent could make changes but Tencent historically is a hands off investment company meaning they typically don't give input into games development or monetization.

[–]FF13LightningReturns 3 points
Good news, more money and resources for developers. Plus Tencent is known for hands off acquisitions.


infinitexx posted...
You may not have heard of Tencent itself, but you're almost certainly familiar with a lot of studios they own. They're a gigantic holding firm (not just video games, they own all sorts of things).


This, it's actually crazy how global they are. Got their hands in almost everything lol.

kbe2k2 posted...
Tencent has their claws in everything. I won't feel bad about freeloading now, days of buying $60 supporter packs ever league to help GGG are finished now that they have a significant backer.


Out of everything I've read so far and thought, this sub-topic of supporter packs/MTXes is the only real concern. Lots of people think that since Tencent has an 80% stake, 80% of supporter pack money go to them, which is false. The money still goes to GGG for dev cost, server cost, office cost, etc. It's only when they turn a profit is where Tencent will see money. (Just like a popular comment on the Reddit thread, a guy may buy a $100 supporter pack in 3.4.0, but after all the checks and balances, Tencent maybe gets $8 or something like that.) With that being said, there's undoubtedly some people that absolutely do not want to support a chinese conglomerate giant, which is totally understandable.

For me personally, I've never bought League packs because I've always thought it was stupid as hell just for a League, so I'll likely continue buying the low-tier one for expansions like I have been doing so far since release.
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User Info: Enclosure

Enclosure
5 months ago#15
Someone clear this up for me then.
So does this basically mean that if GGG turns a profit, they hand over some of the profit to tencents, but if they incur a loss, they can go to tencents for operational money?
http://imgur.com/wNyX55h.jpg

User Info: Marikhen

Marikhen
5 months ago#16
Enclosure posted...
So does this basically mean that if GGG turns a profit, they hand over some of the profit to tencents, but if they incur a loss, they can go to tencents for operational money?


No. If they incur a loss then their shares lose value. It's just like buying stock in Walmart or Intel. If they do well then your stock goes up in value and you might get dividends payments. If they do nothing then you get nothing while your stock lowers in value.
Logic is the antithesis of faith, else why is it that faith defies logic while logic denies faith?

User Info: Ryyaann_Is_Band

Ryyaann_Is_Band
5 months ago#17
Enclosure posted...
So does this basically mean that if GGG turns a profit, they hand over some of the profit to tencents


Yes, equal to how much stake Tencent has (80%). For example:
- Before announcement = You buy $40 supporter pack ---> say, after allocating employee salary, server cost, office cost, etc, there is $6 in profit ---> that $6 goes to Chris/founders of GGG
- After announcement = You buy $40 supporter pack ---> say, after allocating employee salary, server cost, office cost, etc, there is $6 in profit ---> Tencent gets 80% of $6 and Chris/founders get 20% of $6

So the majority of the money is still going into the game. Even then, when Tencent receives that profit money... there's a good chance they'll just reinvest that money back into GGG to turn an even bigger profit, because a move like this doesn't sound like Tencent wants to make a quick buck.

Enclosure posted...
but if they incur a loss, they can go to tencents for operational money?


Not sure. Either yes or GGG will have to pay out of their own pocket. The money they immediately got from this deal sounds like there won't be any money trouble for at least a few years if everyone stopped buying supporter packs right at this instant. I mean, look at why they're already teasing s*** like ExileCon in late 2019 and even 4.0.0 that's in 2020.
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User Info: Volren617

Volren617
4 months ago#18
Whatever money Tencent paid for the deal went into the pockets of the original shareholders who divested (Chris and whoever else), not GGG the studio.

There may be agreements for funding or other investment from Tencent into GGG moving forward, but no one is crazy enough to sell control of a company they founded to someone else without a good payday for themselves.

With that said, thoughts like "they don't need money anymore since tencent is funding them" is backwards. You don't buy a company you think is going to lose you money. They may hold to their word of not changing monetization at all but Tencent is definitely expecting GGG to still make a profit.

If they put more money into the company they will be expecting return on that plus on the original amount they paid for the shares. If GGG doesn't deliver, heads will roll there.

With that said that's all probably a ways down the road.
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