Unity Software Sets Up China Joint Venture With Local Partners
August 10 2022 - 4:26AM
Dow Jones News
By Raffaele Huang
Unity Software Inc. is setting up a $1 billion China joint
venture with partners including Alibaba Group Holding Ltd., the
U.S. videogame software developer said Tuesday.
Other partners include Chinese videogame developers G-Bits
Network Technology (Xiamen) Co. and miHoYo, as well as the China
unit of TikTok's owner, ByteDance Ltd., Unity said in a statement.
Tencent Holdings Ltd., the world's largest videogame developer and
one of Unity's biggest customers, wasn't included as a partner in
the joint venture.
Unity said it will retain majority ownership and control of the
new joint venture.
Competition in China, the world's biggest mobile game market has
increasingly intensified, while user growth has slowed there.
Companies in China are using short-video apps and other new
channels to sell games to players, as well as exploring new
technologies to develop games.
Last year, Unity received 15.2% of its revenue from the Greater
China region. Many of the most popular games in China, such as
Tencent's flagship mobile game "Honor of Kings" and miHoYo's
"Genshin Impact", were developed on Unity's software.
Unity China will start providing services to local customers
late this month, the company said. It will provide localized
versions of Unity products in the country, it added. The U.S.
parent will still oversee the advertising business in the region,
it said.
Write to Raffaele Huang at raffaele.huang@wsj.com
(END) Dow Jones Newswires
August 10, 2022 04:11 ET (08:11 GMT)
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