Hong Kong (CNN Business)US game software developer Unity partners with Chinese tech giant to create billion-dollar Establishing a joint. A venture aimed at growing business in the world's largest online game market.
The venture will "open up new opportunities" to strengthen cooperation with local businesses and increase investment in R&D to better meet the needs of Chinese creators, Unity said. in a statement posted on Chinese social media platform WeChat late Tuesday.
The San Francisco-based company first entered China in 2012,Tencent's (TCEHY) King's Honor and miHoYo's Genshin Impact.
But the expansion of US companies in China comes at a time of uncertainty for the world's second-largest economy. The Chinese government's crackdown on major Internet brands has stifled growth, and rising tensions with the United States over Taiwan and other geopolitical issues have fueled atechnology arms race.
Planned local partners include key players in China's technology industry: Alibaba (BABA), China Mobile (CHL), ByteDance's Douyin Group, Smartphones These include companies Oppo, miHoYo, Xiamen-based online game developer G-Bits Network Technology, and AI technology service provider PCI Technology.
Unity will own a majority of its China operations, the company said. The venture is valued at $1 billion he receives from local partners.
Junbo Zhang, currently Unity's Greater China general manager, will lead the venture as president and CEO, the company added.
China has been the world's largest gaming market since 2017, but investors have recently worried about the impact Beijing's internet crackdown and economic slowdown will have on the industry.
Since late 2020, Chinese authorities have launched a drastic campaign to try to curb big companies in industries ranging from technology and finance to gaming, entertainment, and private education. there is Last August, authorities banned online gamers under his 18 from playing on weekdays.
In 2021, China's gaming industry will generate approximately $47 billionin total revenue, up 6.4% from the previous year. While this represents much slower growth than in 2020,China's gaming revenue still accounts for more than one-fifth of the global market,based on recent estimates from global accounting firm PwC. occupies
In a interview with Chinese tech media site 36kr last month, Unity's head of China, Zhang, said the company plans to hire about 1,000 software engineers in China over the next few years. said he plans to hire Unity did not respond to a request for comment on the reported hiring plans.