1C acquired by Tencent (updated)

In some interesting industry news, we’ve learned that 1C Entertainment has been acquired by Tencent. Here’s what we know about the move and what, if anything, it has to do with IL-2.

Significant acquisition

UPDATE: This article originally was titled “IL-2’s Publisher acquired…” That was inaccurate and the article has been corrected..

As reported by several media outlets including Game Industry.biz and Rock Paper Shotgun, 1C Entertainment has been acquired by Tencent. Tencent is a Chinese based technology and entertainment conglomerate and holding company. They have a stake in a significant portfolio of entertainment and videogame companies with complete ownership of several studios including Riot Games (League of Legends, Valorant) and minority stakes in other major industry players like Activison-Blizzard, Ubisoft, Paradox Interactive and so forth.

They are now a full owner of 1C Entertainment. That is, however, not to be confused with 1C Game Studios (1CGS). I’ll let Jason Williams explain the next part better:

An important clarification. 1C Entertainment is not our 1C Game Studios (1C-777 Ltd.). 1C Entertainment was the Warsaw based entity that owned several other smaller enterprises and titles. The IL-2 Sturmovik franchise is owned by 1C-777 Ltd which is Cyrpus based entity. Nothing has changed in that regard, but this development should be good news for us in the long-term as whenever this happens someone makes money (not me unfortunately) which could potentially end up doing good things for our team. That’s all I can say. There are no negatives here.

Jason Williams

What does this mean?

Along with all of the other uncertainty that is spreading around right now, it’s only natural for all of us to be a little jumpy on what this acquisition might mean. At the moment it seems to matter only very little and Jason’s comment seems to be reassuring in its tone. If Jason isn’t overly worried about this, then neither am I.

38 Comments Add yours

  1. 1_Robert says:

    Thanks Shamrock. I found Jason’s response confusing. I still don’t understand the difference between 1C and 1C studios. Are they completely separate? Does one own the other?

    Liked by 1 person

    1. SimDegen says:

      It’s worded vague enough that he should become a politician

      Like

      1. ShamrockOneFive says:

        I’m sure the situation requires some vague comments to avoid any problems. These are truly troubling waters.

        Like

    2. ShamrockOneFive says:

      I’ve remained stymied by exactly how all of this works and fits together. Then again, I’m a Humanities graduate and not a Business graduate so I admit to some ignorance in this area.

      Like

  2. Skycat says:

    From https://en.wikipedia.org/wiki/1C_Company:

    “In May 2005, 1C bought Cenega Publishing, a Prague-based publisher and distributor. This arm was rebranded 1C Publishing EU in May 2007. 1C Publishing EU uses the trade name 1C Entertainment since late 2018.”

    “According to 1C, the company has established an international presence in 2005 by buying a group of distribution companies in Central Europe like the small games publisher ”Cenega Publishing” (pl), later renamed to 1C Publishing EU based in Czech Republic. Since the purchase, the Cenega group has been transformed into a company for distribution, production and service under the name of 1C Entertainment, with over 400 people employed in Poland, Czech Republic, and Hungary. ”QLOC” (pl) a subsidiary Cenega is a premium service company, providing porting, co-developing, testing and localization services to development studios and publishers. 1C Online Games is the publishing and development arm of 1C Entertainment group the company states. Tencent acquired 1C Entertainment from 1C in November 2021 with the deal closed by February 2022.”

    Looking over the 1C Entertainment Facebook page, there isn’t much about the IL-2 Sturmovik fanchise. Posts about IL-2 Desert Wings Tobruk briefly run in late 2020: https://www.facebook.com/1CCompany/.

    From Wikipedia: “In 2012, 1C partnered with 777 Studios to create 1C Game Studios.”

    From https://rocketreach.co/1c-game-studios-profile_b5f75933f42e8843 : 1C Game Studios was established as a joint venture of 1C Company, leading Eastern and Central European publisher, and award winning developer 777 Studios. 1C Game Studios is set to create IL-2 Sturmovik: Battle of Stalingrad, a new sequel to the award-winning WWII combat flight simulator IL-2 Sturmovik. 1C is the owner of the best-selling IL-2 Sturmovik franchise of combat flight simulators and 777 Studios is the developer of the popular and technologically advanced WWI flight simulator Rise of Flight: The First Great Air war.

    Liked by 1 person

    1. ShamrockOneFive says:

      Thanks for digging this up Skycat. I think I may need to write another article!

      Like

  3. Rhino says:

    I have uninstalled and will no longer support this series.

    Liked by 1 person

    1. ShamrockOneFive says:

      Rhino, it may be worth figuring out how this affects the IL-2 series. The connections between 1C Entertainment and 1C Game Studios seems to be much thinner than I had understood previously.

      It seems to be almost unrelated.

      Like

  4. Bugalugs says:

    Il2 could be in real strife here. They might really struggle to get funds in and out of Russia etc. my understanding has this has always very much been a Russian operation led by an American. I agree the statement is vague.

    Liked by 1 person

    1. 216th_Cat says:

      Indeed. Jason obfuscates here. The fact that the Il-2 forums are clamping down heavily on any show of support for Ukraine makes me think that the Russian links are still there. Their actions may be purely from a business standpoint, but they get no more of my money until the Russian troops are out of Ukraine and it is a free democratic country once more. Or, alternatively, it is proved that 1C:777 have no connection to any Russian business whatsoever.

      Liked by 1 person

    2. Rhino says:

      We have Ukrainian and Russian blood in our family. We cannot tolerate Communism or its tentacles to any degree. The family fled the murderous Germans and Stalin. It still caused Nanna pain to talk about it. Tencent being Chinese and 1C policing the forums for a guy whose tanks are driving into Ukraine, a lot of them flying the hammer and sickle does not sit well with us. It remains for ED to make it perfectly clear where they stand but early signs are good. No war.

      Like

      1. ShamrockOneFive says:

        Hey Rhino. I definitely understand that. My grandfather is Polish, escaped and fought in WWII, and never went back to Poland because of the communist takeover at the time.

        The forums issue is a separate discussion but I hear you on that.

        As for the takeover, it looks like (and the situation is still confusing to me) that 1C Entertainment is going to Tencent. 1C Game Studios appears to be separately owned under the 1C-777 Studios umbrella and may not be involved in the transaction. This is why I say… hold fire. Let’s learn more and then make an informed decision.

        Like

  5. Brad says:

    They are forcing users to strip down all avatars with blue/yellow colours. If the company is registered in Cyprys, you can be sure it’s owned by Russians.

    This is from a moderator of the forum:

    “I have been asked to have you remove the flag from your avatar for the time being. Due to current events, flags and national markings/symbols have become a focus for controversy. We value all members and their respective nations but these forums are intentionally apolitical. While temporary, we are requesting a change in your avatar for a period of time.”

    Liked by 1 person

    1. ShamrockOneFive says:

      Hi Brad. Which forum is this? The il2sturmovik.com forum?

      Like

      1. Bugalugs says:

        Source of controversy? Raising concern that one nation is using rocket artillery on children? Sounds like Russian moderators to me. Boycott all the way.

        Like

  6. ACracer says:

    Interesting discussion here, as Jason on a youtube blog did explain he was only an hired consulted for 1C Battle of series.
    Fact is that now swift payment boycott finally is established, all payments to Russian firms are become very difficult. Even if its through the Cypress route. Maybe the 1C-777 is nothing more then a new holding to stay into the Swift system. Keep in your mind without payers from the western free world it will be a difficult time for BoX.
    I’m not playing BoX anymore but I do hope for peace and free Ukraine.

    Liked by 1 person

  7. Brad says:

    Yes Sir, il2sturmovik.com. They (MisterSmith) apparently have contacted even people who had pics of sunflowers as their avatar, for Gods sake and mods have been deleting all posts where people were complaining about these actions. Unbelievable…

    Liked by 1 person

    1. ShamrockOneFive says:

      Right. Well… all I can say is that we don’t know what the behind the scenes looks like so I believe it and I understand it. As troubling as it is… my attention I’ll admit has been more directed the real world feeds.

      This is not going to be an easy time for anyone anywhere.

      Like

    2. 216th_Cat says:

      Mister Smith has been worrying me since he first appeared before late last year. Comes down very forcefully on all ‘transgressions’, handing out bans etc, refuses to say who he is/was before adopting the name and is a Moderator not a Member. Very, very suspicious.

      Like

      1. Novice-Flyer says:

        Haven’t asked him this yet, but I think Mister Smith is one of the Admins for the IL-2 CloD and the IL-2 BoS Community.
        Michael Smith is one of the Admins.

        Like

  8. Det says:

    The heavy handed moderation started some time ago but has intensified only recently. The fact that Jason doesn’t have an issue with this, especially with regards to discussions, forum avatars, and the like only goes to show you who he really is and what he values most. If the social media response to their actions outside the forums is anything to go by they might be in more trouble than they thought.

    Gonna grab my popcorn and enjoy watching them eat themselves and engage is community self destruction.

    Like

  9. yareq57 says:

    Shamrockonefive, tell your grandfather that you are censoring a Pole who protests against dark types like Jason Williams, I’m afraid he won’t be very pride of you. My grandfather was also fighting as an officer of Armia Krajowa.

    Like

    1. ShamrockOneFive says:

      What?

      Like

      1. Det says:

        Guessing he’s saying that you’re involved in placation, pandering, divisiveness, and or outright avoidance of the fact that Jason and his appointed ilk are actively censoring anything related to Ukraine as a heinous act whilst they conduct business as usual. And the fact that you, as a voice within the community not addressing this has her/him somewhat peeved.

        I get it. I understand your need to stay neutral. However, you might have to actually take a stance, eventually. Or not. Plenty of people, news outlets, and business organizations supported and or avoided covering the Nazi’s (IBM, Ford MC, SRV, etc) prior to and well into the Second World War. Do what’s best for you. Just remember that the internet has a long memory.

        Personally speaking, I uninstalled IL-2 and will no longer be supporting it with my capital. As they say – Speak with your pocketbook.

        Like

      2. ShamrockOneFive says:

        I’m still not sure what he’s talking about.

        I do my best to report on flight sim news. I’ve reported on what the devs have said, I’ve listened and heard people out here about IL-2 forum practices, but I’m not an admin there. I don’t get a say.

        As for my support, I’ve not been quiet in other channels about my support for Ukraine. Long ago I aimed to keep my content as focused as possible here.

        As for voting with your pocketbook, I’m in full support of that. If the product isn’t what you want it to be across any number of categories, that’s absolutely your decision. I’m here so you can make that decision with as much info as I can find.

        Like

      3. ARandomPilot says:

        I think it is reasonable for the forum to clamp down on political discussions. Otherwise, endless arguments alienate typical users that just want to enjoy the game.

        This isn’t the first or the last military operation whose legitimacy is debated – an important fact to consider before taking a public stance if one wishes to appear honest to an international audience.

        However, I wish that Jason would clarify the relationships between 1C Game Stuidios, 1C Entertainment, and 1C-777.

        Like

  10. yareq57 says:

    Det, thank you very much for your explanation,
    you are my best spokesman. My English doesn’t allow me to be more nuanced.

    Like

  11. yareq57 says:

    Speaking of censorship, Shamrockonefive, I was thinking about my previous ironic announcement of Su-25: Battle of Kiev you didn’t allow to publish. I was disappointed just because I appreciated your work on Stormbirds site so much.

    Like

    1. ShamrockOneFive says:

      I’m not sure what you’re referring to. I didn’t see any such comment.

      Let’s not throw around accusations so lightly.

      Like

  12. Chris says:

    I am not going to buy any Il-2 products for at least the next 6 months.

    Like

    1. ShamrockOneFive says:

      Hi Chris. That’s certainly your right as as consumer to make a decision on if the product is right for you. Is it because of the acquisition, the war, or something else. At this point it seems that there’s a considerable gap between 1C Entertainment that was acquired and 1C-777, the entity that is involved in funding IL-2 Great Battles.

      Like

      1. Chris says:

        Yes it has to do with the politcal situation and issues like one can not change email adress without contacting customer support.
        By the way I remember that you like to play “Flying Circus”, did you also review “Wings over Flanders Fields?”

        Like

      2. ShamrockOneFive says:

        Hi Chris. I’ve heard of WOFF and I know a few people who like it. It doesn’t really capture my interest at all and I’m beyond my max for new sims.

        Like

  13. yareq57 says:

    It was sent February 28 at 5:25 am and this remarque appeared: Your comment is awaiting moderation:

    Very exiting news coming from Moscow and Las Vegas. 1C-777 ltd publisher announced the next instalment of their highly prised Su-25 Sturmovik franchise will be: Battle of Kiev. The early access is offered at special price +33%. The surplus will go directly to the victorious Russian army, bravely fighting against the coward Ukrainian Nazi state. The good news is that this time Executive Producer Mr. Jason Williams, or simply Jason for more of us, is going to make a big money just as he planned before doing business with Chinese: “as whenever this happens someone makes money (not me unfortunately)”. With predicted high sales of Su-25 Sturmovik: Battle of Kiev, we and all others hypocrites around the world are expecting that this time it’ll be quite another story.

    Maybe I was a little bit too emotional. Sorry for for my English.

    Like

  14. Redwing says:

    Last Friday I posted a pic on the screenshot-thread of a Yak going down, full of holes and the pilot was dead. Previous to that pic there was and still are many, many pics of 190’s, Spits etc. in flames and exploding, posted by various people. Jason deleted that pic of mine and also my avatar, which was a paintbrush stroke of yellow/blue paint. Well, I changed my avatar to flag of Sweden and got the same PM message as the other guy on your blog.

    Couple days later, there was and still is a pic of Soviet A-20 going down on the screenshot-thread and I commented “Let’s see how long that will stay here”.

    BANG, 7 day ban from Jason Williams with a nice message: “The screen can stay but you can go. Use your damn brain as to why I am doing this. My team is in danger dumbass. They don’t need to suffer because of your action”

    Wow…so posting a picture and comment just put his team in danger of loosing their lives? Their jobs? Will they suffer a beating because some dude posted a pic of Soviet plane going down, right after similar pics of Spitfires and 190’s? Sounds like something from 1984 and I mean the book.

    I haven’t seen any political statements by anyone (well, maybe there were but got deleted) only quiet signs of support with symbols, nothing else. Are they seriously trying to hide all indications of the situation the whole WORLD is watching right now and if so, from whom?

    Now,I have supported and promoted the game studio with buying everything they sell and creating cinematic videos, hoping my modest contribution would help the sales…but I can’t be thinking do I really want to invest in a company who’s Lead Producer is banning people for posting a pic and workers are said to be in danger and might be suffering for such action, by the coverment?

    I have my flakjacket on, so fire away dear readers, if you feel the need for that.

    Liked by 1 person

    1. Det says:

      Wow, really? That’s just nuts.

      Sham, I really think you need to officially address this in an article. I just reported 777 to the DoS and FTC for their actions and continued support for a fascistic-state.

      Like

  15. yareq57 says:

    I was complaining about Jason Williams excessive language towards one of the forum member on Il-2 Sturmovik forum. My post was reedited by the moderators so that it become completely incomprehensible. So I’m not surprised at all by the words he addressed to Redwing.
    Slava Ukrayini

    Like

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