Razer and Tencent Cloud are partnering up and will steer the newfound cloud gaming waters together in the upcoming years. The companies have announced that their collaboration will encompass both the software and the hardware side of things and that they are passionate about contributing to the entire development of cloud gaming with their projects.
‘Taking cloud gaming to the next level’ were the exact words Mr. Min-Liang Tan, the co-founder and CEO of Razer, used in an interview with Blomberg, published on August 22. The interviewers confronted Mr. Tan with a question about the company’s overall strategy regarding their gross income, particularly targeting some reported losses the firm had. Mr. Tan briefly explained that investing in a future project may sometimes lead to temporary losses and that it is all a part of their strategy. He then also emphasized the 30.3% revenue growth the company achieved in the first half of 2019.
“Well, you can see our numbers for the past couple of earnings. We’ve been scaling. Our core business has been incredibly profitable and that’s been part of our strategy. And, our growth’s strategies have been doing incredibly well. For example, Cloud Gaming, Mobile Gaming, and, of course, our services business did very well for the first half of the year.
Cloud gaming is one of the biggest buzz words, I think, for the gaming industry at this point of time. Our partnership with Tencent is really to take cloud gaming to the next level. We are working with them on the hardware side of things, the software side of things, and the services side of things.”
Razer’s partnership with Tencent Cloud means that the company is aiming to be on the cutting edge, according to many experts and online reports. Their undisputed enormous 30.3% growth in the first half of 2019 is proof enough of their well-played strategies. Also, targeting cloud gaming is an especially smart move given the fact that this part of the industry is expected to grow to surpass 124.7 million users by the year 2022, according to the experts. However, Razer did report a loss of $47M in the first half of 2019 due to their strategic investments with a long period of expected returns. This is on top of their 30.3% growth, which is what the media is targeting mostly.