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Qihoo 360 takes a 2.6% stake in Japanese game maker KLab

Making content for the Chinese market
Qihoo 360 takes a 2.6% stake in Japanese game maker KLab

In an interesting move, Chinese Android app distribution giant Qihoo 360 has invested in Japanese game developer KLab.

It's not a large deal in financial terms; Qihoo 360 has taken a 2.56 percent deal - currently worth around $6 million - in the Tokyo Stock Exchange-floated company.

The result is that KLab will set up a team which will work with Qihoo 360 to make games for the Chinese market.

No dumb pipe?

The significance of the deal, however, arises because at the ChinaJoy 2013 conference, Qihoo 360's VP Chen Jie stated the company would not develop games, instead focusing on its app distribution business.

So, what will be fascinating to see is whether this deal is the start of a change of direction from Qihoo 360 or a strategic hook-up with the well-regarded Japanese company.

Certainly rival Tencent has generated strong sales launching internally-developed games on its WeChat platform, something Qihoo 360 could match if it chose to.

[source: TechInAsia]