over 3 years ago • 2 mins
Tencent’s video game segment – its main and most profitable business – did a lot better than analysts were expecting. And that’s not just because its virtual worlds have been providing some much-needed escapism from the real one: the conglomerate has a network of investments in most of the country’s tech companies too – lots of which got a big boost from last quarter’s tech stock rally.
Still, this update did come hot on the heels of a regulatory clampdown on Chinese tech companies earlier this week, which led to a massive sell-off in their stocks 🇨🇳 But Tencent reckons that because its video game business makes it an entertainment company, it’s less vulnerable to the incoming anti-monopoly rules that seem more focused on ecommerce platforms.
If you needed any more proof that video games are a lockdown favorite, just look at Sony’s PlayStation 5: the console – which launched on Thursday – sold out in one day, and is already being peddled for double its retail price on online platforms 🎮 Analysts are expecting shortages – as well as those for Microsoft’s Xbox Series X – to extend into 2021. “Keep ‘em coming,” the UK’s biggest internet providers might be urging: high video game demand is causing record broadband usage.
Tencent also owns a big stake in JD.com, so its day got even better when the ecommerce powerhouse and Alibaba racked up a record-breaking $115 billion in Singles’ Day sales between them 🛍 US companies are feeling empowered by the holiday too: foreign brands as a whole were a big hit, but it was American brands that came out on top.
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