Tencent plans to host VALORANT Gaming League in China

One of the most evident signs that the Chinese multinational company is resuming its activities after a two-year industry crackdown; is Tencent Holdings Ltd.’s plans to organize a VALORANT esports league when the popular shooter sells in the country this year.

According to people familiar with the situation, TJ Sports, a subsidiary of Tencent, has recently discussed organizing a competition with prominent Chinese esports players. When Tencent launches the game locally, a tournament may be held in the summer at the earliest. The person sharing this information requests anonymity because he is revealing private information.

VALORANT League by Tencent

According to sources, talks about the VALORANT league are at an early stage, so Tencent could delay its timetable. However, a VALORANT league will help revive competitive online gaming in China. After being forced into a two-year hiatus caused by economic constraints. Plus, Beijing’s crackdown on teen addiction.

Chinese government control over the sector

After its worldwide release in 2020, VALORANT has gained a lot of fame and is considered one of the most popular esports games. Competing for a considerable market with competing shooters such as Blizzard’s Overwatch. However, Tencent did not get the go-ahead to launch the game until December, which investors took as an indication that the government is set to ease its control over the sector.

Tencent’s share price rose in late Hong Kong trading, reaching a high of 1.8%, before ending virtually unchanged. Tencent’s stock price expectations have been raised in recent weeks by brokerages such as Morgan Stanley. Who is betting on a resurgence of growth if they ease restrictions and gain traction initiatives to sell video ads.

Bloomberg Intelligence analyst Marvin Chen comments:

“These are positive signs that China tech companies are back to business with regulatory headwinds largely behind.”

“It is also in line with recent comments from policymakers that innovation is still in a prominent position for national development.”

A message from a Tencent spokesperson stated that the company is preparing for VALORANT but has not yet set a launch date.

Tencent’s Chinese competitive leagues

Tencent’s Chinese competitive leagues now include leagues of first-person shooters, racing, and battle arenas. To manage League of Legends competitions, Tencent created TJ Sports with U.S. subsidiary Riot Games Inc. in 2019. On the other hand, another division handles managing competitions focused on Honor of Kings. It can be said that the popular Honor of Kings is Tencent’s golden goose.

Adding the exciting VALORANT game is an excellent thing for the company. The VALORANT game, and its potential championships, may help Tencent bolster a business suffering fallout from increasing regulation of online content. Since 2021, when regulators began imposing restrictions on everything, from game time to offensive content, the WeChat operator’s growth has vanished.

According to Macquarie Capital Ltd. analyst Esme Pau:

“We view Tencent’s launch of a gaming league as a positive and bodes well for both the company and the broader Chinese gaming sector in 2023 and beyond.”

“With NPPA’s approvals for domestic and imported games (such as VALORANT) signaling higher transparency, Chinese game companies are better positioned to invest and launch marketing efforts around major franchises and drive higher gaming momentum and revenue.”

Launch of VALORANT in China

Tencent receives December 2022 approval for several major launches, including VALORANT and Pokémon Unite. This development reaffirms optimism that China is loosening its two-year ban on big tech. Given that Beijing has expressed its distaste for violent shooter games with Western cultural overtones, VALORANT drew particular attention.

Por otro lado, Tencent se vio en la necesidad de sustituir PUBG por un título menos gráfico como PeaceKeeper Elite. This game includes political slogans.

Growth strategy for esports in China

Tencent has dedicated millions of dollars to building the infrastructure to transform professional gaming. In addition, it invests in talent agencies, streaming services, and tournament organizers as a strategy to grow esports.

One example is China’s League of Legends Pro League. It is the most prominent esports league in the world, speaking in terms of partners and viewers. Tencent sold tickets, broadcasting rights, and merchandising to earn approximately $150 million in its first two years.

In countries outside China, Riot organizes and runs three major international VALORANT leagues with 30 teams in cities such as:

• Berlin
• Los Angeles
• Seoul

Header: Riot Games