nba2k_home2K Sports has got a new NBA game in the works, and it’s not just the yearly 2K10 entry.  The company has announced a partnership to co-develop NBA 2K Online with Tencent Holdings Limited, an internet portal in China.  This new team will be dubbed Take-Two Asia, and will also release the game in Taiwan, South Korea and other parts of Southeast Asia.  Tencent has plenty of experience in the online world.  It represents China’s largest virtual community with 411 million active user accounts.  By comparison, Steam has a mere 1 million users.  Yikes.

NBA 2K  Online will be exclusive to the Asian market.  Paul Thornton, a portfolio manger, and founder of www.investorbootcamp.ca says Chinese game companies face a unique challenge.  “Online gaming is growing in China versus retail sales because there is a reputation of piracy in everything from music to movies,” he says.  ”This way revenues can be controlled.”  Tencent is listed on the Hong Kong Stock Exchange, where its shares are trading 30% higher on a year-over-year basis.  With its market cap at a whopping $160.75 billion, Tencent is ten times larger than Activision Blizzard’s market cap of $15.68 billion.  To be fair though, it is a holding company with diversified internet interests – Activision is focused on publishing games.

China experienced a huge spike in online gaming in 2008  — growing 61% from the previous year, and generating a revenue of $2.75 billion.  Analysts at Nikko Partners project it could reach almost $9 billion by 2013.  We’re talking big here.  ”China’s online games market is at a nascent stage and we believe that opportunities are just beginning to unfold,” says Martin Lau, president of Tencent.  His company currently operates 67 mini casual games, five advanced casual games and five MMORPGs.

The popularity of the NBA continues to grow in China.  The basketball league is considering building 12 arenas in the country, where it estimates the fanbase consists of more than 500 million people.  Paul Thornton puts it simply: “You have to think that an online NBA game in China is going to go gangbusters.”






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