Square Enix has announced that it has signed a letter of intent to form a strategic alliance with Chinese multinational, Tencent, with the aim of establishing a joint venture and co-developing AAA games.
The titles will be based on new and existing intellectual properties, “and more.”
“Tencent Group and Square Enix Group share the vision of utilizing technology and creativity to deliver unprecedented entertainment experiences and services to a global audience,” said Square Enix’s Yosuke Matsuda. “This newly established alliance will be a strong boost to Square Enix Group’s strategy to diversify our content offerings and expand access channels to a wider customer base.”
Tencent recently lost $20 billion in value as China’s government announced that it wants fight myopia in children by restricting the amount of games being released in the market. It’s too early to say if the move will impact the company’s new joint venture. For now, Tencent seems hopeful.
“We have strong expectations for this strategic alliance with Square Enix Group,” said Senior Vice President Steven Ma. “The alliance will enable us to couple our broad range of internet service capabilities to Square Enix Group’s superb creativity, and provide our customers with unprecedented content experiences on a global basis.”
Square Enix has said that it’ll announce more details at a later date.