Tencent Said to Have Dungeons & Dragons in Its Crosshairs

While the legitimacy of the report is supported by Speed Daily citing Snow Leopard Financial as its source, the precise nature of Tencent's interest remains unclear. The report suggests that IEG Global, a Tencent subsidiary, is aiming to acquire a range of rights, including adaptation rights for Dungeons & Dragons.

Furthermore, it highlights Tencent's historical challenges with licensed IPs, such as high copyright fees, long-term revenue sharing commitments, and restrictive conditions imposed by IP owners. Tencent's potential pursuit of a master license for Dungeons & Dragons can be seen as a long-term attempt to navigate these challenges and pursue high-profile video game projects, in order to replicate the success of Baldur's Gate 3.

It is noteworthy that Tencent typically invests in game studios rather than acquiring IPs outright. If Tencent proceeds with the acquisition, it would mark the company's first foray into direct ownership of an IP. Notably, Tencent has faced scrutiny from the Chinese government, and its valuation experienced a decline following a government crackdown on online gaming.

Tencent, a dominant force in the Chinese - and global - gaming industry, has already solidified its presence with ownership of major gaming brands, including Riot Games and TiMi Studio Group, known for developing popular titles like Call of Duty: Mobile and Pokémon Unite.

The potential acquisition of Dungeons & Dragons could lead to a massive industry shake-up in Tencent's interest with adding one of gaming's most iconic franchises to its portfolio, while also giving the company a gateway to non-digital markets.

This move by Tencent would align with recent changes in the Chinese gaming market, where new regulations have been implemented to curb certain practices. These regulations include restrictions on microtransactions within games, such as prohibiting games from offering additional incentives to first-time spenders.

Additionally, the laws address other common practices in free-to-play games, including the elimination of daily reward systems and rewards for consecutive purchases. Before everyone in the tabletop roleplaying game and video game industries and fan communities gets too excited, it should be noted that this is an unconfirmed rumor.

The report from Speed Daily is curiously consistent with theories made by Roll for Combat on their YouTube channel. Specifically, Stephen Glicker (Roll for Combat Publisher) talked at length about this possibility of Larian Studios acquiring the D&D IP on January 13.

While the reports are unconfirmed, the prospective sale of Dungeons & Dragons does come at a time when the franchise is experiencing heightened popularity. Notable releases like Baldur's Gate 3 and Dungeons & Dragons: Honor Among Thieves (which grossed over $200 million worldwide) have propelled the brand to new heights of public awareness.

Wizards of the Coast is also gearing up for the launch of the latest - and most controversial, incidentally - iteration, One D&D, later this year as part of the 50th anniversary celebration (Year of the Dragon) of the TTRPG.

If the rumor and report are proven to be true, Tencent's potential involvement in Dungeons & Dragons suggests a strategic move to capitalize on the franchise's success and long-term plans to build on it for future projects.