Inside the game of Tencent to dominate a $ 13 billion esports arena



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HONG KONG (July 25): The cries of 18,000 people crammed into a stadium in Shanghai are swelling crescendo. Lightweight and especially goggles, 10 young men install themselves in boxes with straight LED lines coming out of Tron, put on headphones, lock thumbs on giant smartphones – and the battle begins. The stake is 1.8 million US dollars and social media play the role of Tencent in a US $ 13 billion esports ring

Esports takes off on a global scale, but more than in China: a country of more than 400 million players. American professional sports. At the heart of the largest gaming market in the world, Tencent Holdings Ltd, which bets one billion yuan (US $ 150 million) a year, will win fights like Honor of Kings for its supremacy in this booming market.

Activision Blizzard Inc., Tencent has become one of the most aggressive promoters of pro-gaming. It is difficult to exaggerate the mania that particularly strikes China: at least 10,000 teams exist across the country despite only 12 places in this year's King Pro League tournament. Last year's games attracted up to 240 million daily viewers – the double of the US Super Bowl audience – on TVs, phones and computers, the best players paying a transfer fee of several million dollars

. In its ever-expanding list, pro-gambling is a company in which China is a leading competitor. "Esports is entering a golden age in China and around the world," said Cheng Wu, vice president of Tencent. at Google and P & G. "It's one of those rare areas where China has a real chance of competing with developed countries."

Tencent is not the only one to be assessed. From Walt Disney Co to Amazon.com Inc and Electronic Arts Inc, some of the world's biggest media giants are vying for a slice of the cake, inking offers for ESPN or creating leagues, including own Riot Games Inc. from Tencent. The Chinese company is in the unique position of owning and supporting signature titles such as League of Legends and Fortnite, plus a distribution channel anchored by its billion-plus WeChat users. Through rare interviews with Tencent executives, the titan of social media has described his strategy to dominate the game.

True, the esports is still a drop of water for one. of the 10 largest companies in the world and its $ 50 billion in revenue. But it is a fast-growing company that powers Tencent's core business while promoting engagement on its many online platforms, from WeChat and media to advertising.

To this end, she teams up with Under Armor. a show that features the best players. He adapts Honor of Kings in a fantasy novel and produces a television series and a movie focused on the players. Taking a page from the Blizzard Overwatch League, it is also decided to a more typical professional setup where some clubs – and therefore their investors – are guaranteed in tournaments.

"The new system will eliminate the concerns of investors and club owners," said Zhang Yijia, chairman of the King Pro League and a general manager of mobile esports for Tencent.

At the center of Tencent's ambitions is a franchise of only two years: Honor of Kings, the blockbuster that stormed China before migrating abroad as Arena of Valor (at a startup slower). It's still the first internally developed mobile game that has a chance to become global: its nearly identical international version will be one of six titles for the upcoming Asian Games, which is a great recognition for the genre. .

"Combines elements of Chinese historical characters, heroes and culture, and helps export our historical heritage," Cheng adds.

To strengthen its international visibility, the team invites South Korea, Malaysia and North America another showdown later this year, said Zhang. "The Asian Games are a good start, it will help us develop in the world arena."

Back in Shanghai, the show is raging as teams of five men make their way through an arena , firing magical attacks, circling choke points and maneuvering in striking position.The audience is staring at a Jumbotron as the camera pivots wildly between frenzied fray at the other. </ p> <p> One of the many young women present burst into tears – a testimony to the popularity of the title among women.In the end, the winners will share 12 million yuan ($ 1.8 million) in cash, but Tencent will receive at least 200 million yuan in revenue From distribution rights and advertising, agents, managers, scouts, marketing experts and even nutritionists are emerging to support budding celebrities. A high-level team in China requires up to 3 million US dollars a year, according to IDC estimates.

The most important cog in this machine is that of Zhang Yuchen, 23, who will head his country August at the Asian Games in Jakarta. For every turn played by Zhang, there may be 10 or more support staff: coaches, data analysts, physical trainers and even psychologists.

Raised in the rust belt of northeastern China, he abandons school banking his penchant for the game. What started as a light pleasure two years ago became a noon until 39 at 5 am concentrated around spartan dormitories where players eat, train and sleep. It never ends: the ultimate skill is a moving target because Tencent constantly refines the design and balance of the game, cards to character skill parameters

The gain: this year, Zhang pocketed a check of 10 million yuan to change club. 19659002] "Maybe in the beginning we were just playing, but then we realized that to get results, you have to invest a lot and the training hours start to lengthen", Zhang said, speaking under the broom. scruffy hair. "It's counterintuitive to the idea of ​​playing relaxation or joy, that professional players have to spend a lot of time thinking and studying."

In tournaments, Zhang turns into a clear-eyed killing machine. This has helped to make its way through a network of tournaments that goes from university and city to regional and ultimately national level. There are finals for spring and autumn and a big championship that equals the FIFA World Cup.

"It's the same as watching football," said Celia Hodent, author of "The Gamer's Brain". user experience for Fortnite. "We take root for our teams, because humans need to feel that they belong to a group and we are in touch with the other members of this group.We also invest emotions through the story of the game, just like when we watch a movie full of suspense. "

Investors have noticed, pushing game stocks to record levels. Huya Inc., a Chinese Twitch-like streaming service backed by Tencent, has tripled from its May list.

However, Tencent faces quite unique obstacles in its own territory.

a lightning rod for criticism of gambling addiction and sparked a public outcry and demands for accountability. Last year, Tencent was forced to limit the game for minors. Alibaba Group Holding Ltd, Tencent's rival in most kingdoms, is trying to get things done by promoting what it calls non-violent esports pursuits focused on football and the race.

With esports though, the prize and celebrity status players can help win parents, as the crowd of proud mothers and fathers who were privileged in the arena during the tournament's. Honor of the Kings this year.

"A big part of what makes games appealing According to Nir Eyal, author of" Hooked: How to Build Training Products Habits. " "Players are always just below the perceived optimal performance – thus developing a constant desire for improvement and reward."

The biggest question can be longevity, in an infamous industry for titles that flare up to record heights before disappearing in the dark. Honor of Kings has so far shown sequential revenue growth each quarter since its inception, according to Alex Malafeev, co-founder of SensorTower. The IDC analyst, Neo Zheng, thinks that he has at least two to three years to live

Then there is the question of how long the players themselves even can endure their punishment regime. Zhang is already thinking about life after the game, noting that fellow 25-year-old Zuo Bin is now a commentator with more than 670,000 fans on the Chinese equivalent of Twitter.

"I will stay in the industry, maybe become a coach," he said. "But being a professional player is what everyone in this industry really wants, so I will try to keep it as long as possible."

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