Tencent is shutting down its Twitch-like game streaming service called Penguin eSports from June 2022.
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People walk past the Tencent booth at the China International Trade in Services Fair (CIFTIS) in Beijing on September 6, 2020.
Tencent closes a Twitch-like service
Chinese gaming company Tencent’s video game streaming platform is similar to the work of Twitch, in which gamers stream their games for the online world to see.
In addition to this, Penguin eSports also organizes professional online gaming tournaments.
However, unlike the massively popular service, Twitch, Tencent’s own version of the video streaming platform has failed to capture the Chinese market, according to a report by Technological crisis.
Despite this, the outlet pointed out that Tencent still owns the two biggest game streaming services in the Chinese nation, namely Huya and Douyu. It comes after the world’s largest game company bought the two video-sharing platforms.
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The headquarters of Tencent, the parent company of Chinese social media company WeChat, is seen in Beijing on August 7, 2020. – Beijing on August 7 accused the United States of ‘repression’ after President Donald Trump ordered sweeping restrictions on Chinese social media giants TikTok and WeChat. (Photo by GREG BAKER / AFP)
In fact, Douyu and Huya combined also capture around 70% of the overall game streaming market in China, according to the Asian territory’s market regulator.
Tencent has already announced that Penguin eSports will stop accepting new users starting April 7, Thursday. However, existing users of the service still have two months before the service shuts down completely.
Read also : China to require Tencent to submit all apps and updates for inspection under ‘temporary administrative guidelines’
Tencent’s Penguin eSports Shutdown: Here’s Why
According to a recent report by CNBC, the Chinese gaming company is shutting down Penguin eSports on June 7, which will officially mark the demise of the Twitch-like streaming service.
Tencent announced that its decision to cease operating Penguin eSports was part of its decision to change its business strategy.
Meanwhile, Tech Crunch said in its report that Penguin eSports’ demise could likely be due to the many challenges the gaming company faced with the streaming service.
As mentioned earlier, the video streaming platform failed to conquer the Chinese manufacturer. Not to mention that smaller services, such as Kuaishou and Bilibili, are also in close competition with it as the two continue to grow in China.
Additionally, the outlet suggested that Penguin’s demise had something to do with the monopolistic position of Tencent’s two gaming services, namely Huya and Douyu.
It’s also worth noting that the Chinese gaming company also has a stake in other booming services that rival Penguin eSports, including Kuaishou and Bilibili.
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This article belongs to Tech Times
Written by Teejay Boris
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