The US-based gaming firm filed for an IPO and to attain future growth the children and community-focused gaming platform is preparing to enter China. The details were revealed for the first time in its IPO prospectus.
China is one of the biggest markets for the gaming industry in the world and entering the Chinese gaming industry requires joining hands with a local publishing and operations partner. And guess what, the game studio has already decided about it, the same partner which Epic Games, Nintendo, Activision Blizzard, Ubisoft, Riot Games and many more have in common; the world’s largest gaming firm in terms of revenue, Tencent.
Roblox And Tencent
The partnership between Roblox and Tencent started in 2019 in which the kids game platform holds 51% shares and Songhua, a Tencent affiliate, holds the remaining 49%. Tencent will publish and operate a localized version of Roblox which will go by the name of Luobulesi.
However, it won’t be that easy because the Chinese government’s regulation on user-generated content is quite strict. Roblox on the other hand is positive about its future growth in China and is depending on Tencent’s ability to overcome the regulatory hurdles. The company promises that its user experience won’t be compromised in compliance with the Chinese authorities and is optimistic that they will surely get a green light.
“While Tencent is still working to obtain the required regulatory license to publish and operate Luobulesi [Roblox’s local name] in China, we believe the regulatory requirements specific to China will be met. In the meantime, Luobu is working towards creating a robust developer community in China.”
USA And China
It would be interesting to see how the uncertain geopolitical relations between the US and China will affect the gaming industry given. Back in September, The Committee on Foreign Investment in the US opened an inquiry about the data practices of gaming studios that work under the umbrella of Tencent like Epic and Riot, and, certainly, Roblox won’t be any exception.