Qualcomm and Tencent Games will collaborate in the digital entertainment field, the companies announced on Monday.
They have signed a nonbinding agreement for joint efforts to optimize projects that include Qualcomm Snapdragon chips in mobile gaming devices, game content and performance optimization, cloud gaming, augmented and virtual reality and more.
The collaboration comes as industry and consumer interest in digital entertainment flourishes.
In April, Qualcomm joined hands with Vivo and Tencent to work on new AI technology in League of Legends AI. Esports are becoming an important outlet for new AI and faster chips. And esports are popular: a 16-year-old won the inaugural Fortnite World Cup in front of a full house at Arthur Ashe Stadium in New York. For that win, Kyle Giersdorf won $3 million
Steven Ma, senior vice president at Tencent said in a statement that Qualcomm and Tencent can combine R&D experience and technologies to “bring better game quality and interactive experience to users.”
Added Frank Meng, chairman of Qualcomm China: “We’re ushering in a new age of gaming.” He called mobile gaming an important 5G use case with its faster speeds and low-latency.
The need for stronger relationships across the mobile gaming industry is becoming more important, the companies said. “Both parties aim to develop popular, high quality games that can be experienced by consumers across a variety of Snapdragon platforms and devices,” their statement said.
Qualcomm’s after-hours stock price rose and then dropped slightly after the announcement but then nearly resumed its market closing value of $74.97 three hours later. Tencent’s stock price rose slightly after closing to $370.20.