£480m dev fund as Tencent begins mobile raid

Tencent, one of the largest online gaming companies in the world, is to embark on the lucrative mobile games sector.

The firm has struck a deal with mobile group Gree to help build a new mobile games platform.

Japan-based Gree will provide Tencent with tech and expertise to build a new mobile platform that will be reminiscent of its own.

Tencent’s desire to succeed in the mobile space was made unequivocal as the firm launched a £480 million development fund for external studios wishing to build games on its new platform.

The 5 billion Yuan cash pool is for companies that develop online games, social networking, and electronic commerce, according to a statement on the firm’s website.

Games developed for Tencent’s platform will also be available to the users of Gree’s gaming service, as part of the deal.

China’s mobile game users topped 120 million in September, and the market is expected to continue growing, Gree said.