Being one of the world’s largest investment internet and technology companies and reaching a market volume of 580 billion dollars as of January 2018, Tencent has a large number of productions, games, internet services, It hosts many multiplayer games and platforms, also known by the payment system company and gamers. For this reason, we often receive news about the good works he has done. But this time, it has announced that it will temporarily close one of the popular game streaming services.
Tencent is closing Penguin Esports until June!
Dubbed Twitch-like by gamers, Penguin Esports has never been able to gain significant market share in China. However, Tencent already owns Douyu and Huya, the country’s two largest digital broadcasting platforms, due to previous acquisitions. In this way, it dominates 70 percent of the market alone.
Penguin Esports, on the other hand, will be closed for a while due to some difficulties it has experienced. At the same time, the platform is facing increasing competition from Bilibili, known for its popular user-generated video streaming service, and from short video app Kuaishou, a competitor to Douyin.
With a market capitalization of $10 billion and $40 billion respectively, Bilibili and Kuaishou invest heavily in live servers and exclusive broadcast rights. On top of that, the ongoing game license freeze in China has intensified the competition between platforms as servers have run out of content to chase after.
Finally, this combined monopoly position of Douyu and Huya, which dominates 70 percent of the market, makes Penguin Esports look redundant within the company. It should also be noted that he has shares in both Bilibili and Kuaishou. Therefore, if Penguin does not think about flashing, his job is very difficult.
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