Nintendo or Tencent: which Asian gaming giant is better in terms of quality, revenues, and ethics?

A recently published report has revealed that the Japanese gaming giant Nintendo generated an estimated $15 billion in revenue in 2022. Despite this substantial figure, Nintendo only secured 4th place on the list, trailing behind their Chinese rivals, Tencent.

Both of these Asian gaming giants heavily influence the gaming industry. For years, many players have pondered which one is ‘better.’ Is it possible to determine the superior one by analyzing their market presence, ethical practices, and the overall quality of their products? Let’s explore.

Generally, Tencent is considered to be larger than Nintendo in terms of revenue and market capitalization. Tencent, one of China’s top tech companies, has become a gaming powerhouse by developing some of the country’s leading mobile games, acquiring overseas studios, and investing in publishers like Epic Games, Activision Blizzard, and Ubisoft.

Tencent is also the distributor of Switch consoles and games for Nintendo in China. According to a report by Newzoo, Tencent was the top public video game company by revenue in 2021, with $7,556 million, while Nintendo was ranked fourth with $3,683 million.

Regarding market capitalization, Tencent boasts a higher market cap compared to Nintendo. Tencent’s market cap is estimated at $555 billion, whereas Nintendo’s market cap is estimated at $55 billion.

However, it’s essential to note that Nintendo derives nearly all of its revenue from its consoles and games, making it a pure player in the gaming market. In contrast, Tencent generated less than a third of its revenue from its gaming business last quarter, with the rest coming from advertising, social networking, fintech, and cloud ventures.

In the end, in terms of a sheer monetary standpoint, the winner is Tencent.

Comparing Nintendo and Tencent in terms of game quality is challenging, as both companies have produced high-quality titles. Nintendo, known for manufacturing popular video game consoles for nearly four decades, has globally recognized first-party franchises, including Mario, Zelda, and Metroid.

People trust Nintendo games to be of high quality, as Nintendo has a reputation for creating innovative and enjoyable games that appeal to a broad spectrum of players. On the other hand, Tencent has achieved gaming prominence by developing some of China’s top mobile games, such as Honor of Kings and Peacekeeper Elite.

Tencent also invests in publishers like Epic Games, Activision Blizzard, and Ubisoft. Tencent owns Riot Games, the creator of the battle royale sensation “League of Legends,” and holds stakes in French gaming giant Ubisoft and Activision. Furthermore, Tencent serves as Nintendo’s distributor for Switch consoles and games in China. Tencent has announced a partnership with tech company Logitech to create a new handheld video game console.

Looking at the number of iconic IPs and their influence on the development of gaming, it is apparent that in terms of quality, the winner is Nintendo.

It is difficult to compare Nintendo and Tencent in terms of ethics, as both companies have faced criticism and controversy in different areas. Here are some points to consider:

Nintendo:

• Nintendo has been criticized for its lack of diversity in its games and for not including same-sex relationships in its games.
• Nintendo has also been criticized for its labor practices, including allegations of underpaying and overworking its employees.
• Nintendo has been praised for its commitment to quality and for creating family-friendly games that are accessible to a wide range of players.

Tencent:

1. Tencent has been criticized for its close ties to the Chinese government and for its role in censoring content in China.
2. Tencent has also been criticized for its data privacy practices, with concerns raised about the company’s collection and use of user data.
3. Tencent has been praised for its investment in the gaming industry and for its role in bringing popular games to a wider audience

In the end, in terms of ethics, the result is a Tie.

In conclusion, whether Nintendo or Tencent is superior remains subjective and depends on individual values and priorities. Both companies have faced criticism and controversy in different areas, leaving it to individuals to determine which aligns more closely with their values.

Note: We have more such stories in our dedicated gaming section, so be sure to follow them as well.

Feature image source: Nintendo, Tencent

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