US Gaming software developer Unity is partnering with China

Updated on August 11, 2022 11:15 AM by Emily Hazel

US Gaming software Unity is partnering with some of the biggest names in China to establish a billion-dollar venture as they aim to grow business in the world's largest market for online games.

Unlocking new opportunities

In 2012, the San-Francisco-based company entered China. The company's venture is to unlock new features with local companies and increase the investment in research and development for the better server needs of Chinese creators. Its most popular games with its software tools include Tecent's TCEHY Honor of Kings and miHoYo's Genshin impact.

Company expansion in China

American company entered China, the world's second-largest economy, at an uncertain time. Beijing had a crackdown as they led on internet brands that hurt growth and rising tension with the United States over Taiwan.

Tech industry of China

Some of the local partners plan to work with major players in China’s tech industry include Alibaba (BABA), China Mobile (CHL), ByteDance’s Douyin Group, smartphone company Oppo, miHoYo, Xiamen-based online game developers PCI technology, and AI technology service provider and G-Bits Network technology.

Unity game developer

The majority control of the china venture is with Unity as their venture is valued at $1 billion, followed by the investments from the local partners. Unity General Manager for Greater China is Junbo Zhang, who will lead the venture as CEO and president.

Internet crackdown

Since 2017, China has been the world's largest gaming company market, but they are concerned about the impact of Beijing's internet crackdown and the economic slowdown in the industry. In 2020, Chinese authorities launched a sweeping campaign for big industry players ranging from tech and finance to gaming, private education, and entertainment. Authorities of China banned online gamers if they were under 18 and used to play on weekdays.

Revenue of the gaming industry

The total revenue of the gaming industry since 2021 is about $47 billion, up 6.4% from the previous year. It represents slower growth than 2020. The gaming revenue of China is announced as the fifth in the global market. Unity’s China head Zhang plans to hire 1000 more software engineers in China for the next few years.