The two companies are planning to collaborate in three specific areas: hardware, software, and services. Tencent will work closely with Razer to optimize its mobile games for Razer’s hardware, including its smartphone and gaming controllers. They will also work to optimize Tencent games for Razer’s mobile game platforms and the Razer Cotex mobile game launcher. Other Razer software like the Chroma RGB lighting and THX Spatial Audio might find their way into Tencent mobile titles as well. Finally, the companies will explore additional monetization opportunities in mobile games, including integrating Razer services.
“Mobile gaming keeps growing at an incredible pace and at Razer, we are poised to be a leader in the segment. We have been working with Tencent since 2008 and are excited to now enter into a collaboration with them to spearhead future innovation in the space,” said Min-Liang Tan, co-founder and CEO of Razer. “With the strengths of Tencent and Razer combined, we are going to supercharge the mobile gaming industry.”
Tencent is the publisher behind mobile hits like “PUBG Mobile” and “Arena of Valor.” It also owns “League of Legends” developer Riot Games and has stakes in “Fortnite” developer Epic Games and “Clash of Clans” developer Supercell. While the tech conglomerate has suffered recently thanks to stricter video game regulations in China, it managed to make nearly $1 billion a month in profits during fiscal 2018.
Razer recently cut about 30 positions, some from its mobile gaming division, representing 2% of its workforce. The layoffs were part of the company’s recent realignment efforts. It also decided to shutter its online game store less than a year after its launch.