Huawei and Tencent have just announced a partnership to develop a video game streaming platform. More and more tech giants are venturing into this field right now. China will join two of its biggest forces to make a place for itself in this market, which is expected to explode in the coming years.
Tencent and Huawei want their own Google Stadia. The two companies have just signed a partnership to create a cloud gaming platform. The potential of this collaboration is not the least, Tencent Games being the largest video game company in the world. It is directly involved or through its subsidiaries in some of the most popular games of the moment: PUBG, Call of Duty Mobile, League of Legends or Fortnite.
Huawei: soon a rival platform of Stadia and xCloud
The collaboration includes harnessing the computing power of Huawei's Kunpen processor to build a gaming streaming platform called GameMatrix. This project was launched by Tencent Games in 2019. The company decided to involve its compatriot. The two companies have just created a joint innovation laboratory to develop the platform.
Huawei and Tencent will also collaborate in areas such as artificial intelligence, augmented reality and virtual reality in games,Tencent said in a statement. That is all we know at the moment about the partnership between the two Chinese companies.
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Huawei can be seen trying to take advantage of this platform by offering, for example, games or exclusive offers to owners of a Huawei or Honor smartphone. But the success of this platform will depend mainly on the quality of the game offering as well as the price of the subscription. For now, the market is really struggling to take off.
The launch of Google Stadia was a monumental failure. This is partly because of the platform's low-incentive business model. The games are sold full price in addition to the monthly subscription. Added to this is a catalogue that is far too puny to attract players. So many defects that Tencent and Huawei will have to avoid in order to hope for a better launch.