Will Tencent and Nintendo's Team-Up Hurt Sony and Microsoft?

Will Tencent and Nintendo's Team-Up Hurt Sony and Microsoft?

Nintendo (NASDAQOTH: NTDOY) recently partnered with Chinese tech giant Tencent (NASDAQOTH: TCEHY) to bring the latter's hit game, Honor of Kings, to the Switch console. Honor of Kings is the top mobile game in China, with over 200 million monthly active players, and generates over half of Tencent's mobile gaming revenue. Tencent plans to launch the game in Europe and the U.S. later this year.

Nintendo will launch the hit MOBA (multiplayer online battle arena) game under its English title Arena of Valor for the Switch, which complements Tencent's plans to launch the game overseas. However, some industry watchers believe that the partnership could pave the way for Nintendo to launch the Switch in China -- potentially denting sales of Sony's (NYSE: SNE) PS4 and Microsoft's (NASDAQ: MSFT) Xbox One.

Arena of Valor (Honor of Kings). Image source: Google Play.

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Source: Fool.com