Better Buy: Nintendo vs. Tencent
Nintendo (OTC: NTDOY) and Tencent (OTC: TCEHY) are two of the world's largest video game companies. Nintendo has produced popular video game consoles for nearly four decades, and its first-party franchises -- including Mario, Zelda, and Metroid -- are recognized worldwide.
Tencent, one of China's top tech companies, became a gaming juggernaut by developing some of the country's top mobile games -- including Honor of Kings and Peacekeeper Elite -- gobbling up overseas studios like Riot Games and Supercell, and investing in publishers like Epic Games, Activision Blizzard, and Ubisoft. Tencent is also Nintendo's distributor of Switch consoles and games in China.
Nintendo generates nearly all of its revenue from its consoles and games, which makes it a pure play on the gaming market. Tencent generated less than a third of its revenue from its gaming business last quarter, and the rest comes from its advertising, social networking, fintech, and cloud businesses.
Source Fool.com
