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Roblox and Tencent has announced a big gaming partnership

Roblox has formed a partnership with Tencent that will ultimately lead to the hugely popular creation platform launching in China.

The partnership with Roblox comes at a time when Tencent is battling strong competitive wages in the games market. While Tencent recorded an increase in game revenue of only 8.8% in 2018, according to Newzoo data, Sony (SNE) recorded a 41% increase in game revenue, and Microsoft (MSFT) recorded a 32% increase in game revenue in that year. Game revenue rose 36% for Nintendo (NTDOF) in 2018. Also, Apple and Google (GOOGL) are gearing up to launch new game services, known as Arcade and Stadia, respectively, in the coming months. The arrival of Arcade and Stadia will mean even more competitive pressure for Tencent.

roblox

In a joint statement, actually launching Roblox in China was described as "the ultimate goal" of the Shenzhen-based venture.

By sponsoring young Chinese students to sharpen their skills in game development in the United States, Tencent can identify top-notch talent that it can absorb into its developer teams to help it stay competitive in the games business.

The joint venture will be a "multi-year investment," however, and it will eventually run local coding camps and training programmes for educators interested in using Roblox with their students. Roblox already provides support in Chinese, and has localised its coding curriculum for China.

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