San Francisco : Video game company Tencent said it would shut down its game streaming platform Penguin Esports by June due to “changes in business strategies”.
Twitch-like Penguin Esports never garnered substantial market share in China, but Tencent already owns two of the country’s biggest game streaming platforms, Douyu and Hua, as TechCrunch reports.
The two services command more than 70 percent of the game streaming market in China, China’s market regulator said last July.
Penguin Esports is likely to end due to some challenges.
The platform is facing increasing competition from Bilibili, which is known for its popular user-generated video streaming service, and Kuaishou, the short video app that is a nemesis of Douyin (the Chinese version of TikTok).
Both Bilibili and Kuaishou, which have current market caps of $10 billion and $40 billion respectively, are investing heavily in live hosts and exclusive streaming rights.
On top of that, the ongoing gaming license freeze in China has intensified competition between platforms as hosts are running out of content to talk about.
In the end, Douyu and Hua’s joint monopoly position makes Penguin Esports inside Tencent look unnecessary. And one should be reminded that Tencent also has stakes in both Bilibili and Kuaishou.