Tencent (TCEHY) stock took a beating on Thursday after the Chinese entertainment company responded to Sony’s (SONY) copyright infringement lawsuit against it. The lawsuit was filed over its upcoming game, Light of Motiram. Sony’s lawsuit claims that this infringes on its PlayStation Horizon series of games, pointing to similarities between the main characters, setting, and art style.
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Tencent has fired back, arguing that Sony is seeking a “monopoly on genre conventions” and that Light of Motiram uses “time-honoured” genre tropes. Tencent also noted that Sony took significant inspiration from Enslaved: Odyssey to the West, a 2010 game developed by Ninja Theory and published by Bandai Namco (NCBDF).
Tencent’s final argument against Sony is that the lawsuit targets the wrong companies. It claims Sony has sued its U.S. divisions, which have nothing to do with the development of Light of Motiram. The company believes the lawsuit should be thrown out because of this. Legal matters like this can take significant time to resolve, so it might be a while before more details about the case are released.
Tencent Stock Movement Today
Tencent stock was down 2.89% on Thursday but was still up 55.05% year-to-date. The company’s stock has also rallied 70.48% over the past 12 months. Tencent has its fingers deep in the gaming industry, with investments in Fortnite owner Epic Games, League of Legends developer Riot Games, Baldur’s Gate 3 creator Larian Studios, and Elden Ring maker FromSoftware, which Sony also has a significant stake in, just to name a few.
Is Tencent Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Tencent is Moderate Buy, based on one Buy rating over the past three months. With that comes an average TCEHY stock price target of $77, representing a potential 6.73% downside for the shares.
