Tencent’s PC Gaming Revenue Declines Due to Chinese Government’s Game License Freeze
Tencent Holdings, the parent company of Riot Games, has experienced a consistent decrease in its PC gaming revenue this year, as reported by gamesindustry.biz. This decline can be attributed to the Chinese government’s freeze on issuing game licenses, a situation that shows no signs of ending anytime soon. Despite this, Tencent has remained optimistic, announcing the release of 15 new games in the future, on top of the 10 new games that were released in the previous quarter.
Although the decline in revenue is concerning, it comes as no surprise considering that Tencent’s market value has been lowered by $180 billion USD this year, resulting in the company’s first significant restructuring in six years. Tencent has attributed the decline in PC gaming numbers to the growing popularity of mobile gaming, with smartphone revenue seeing a sequential growth of 11 percent, totaling $2.8 billion for the period.
The success of Tencent’s game, “Honor of Kings,” has played a significant role in the continued growth of the mobile gaming sector. However, it is important to note that the company’s PC gaming portfolio has experienced a sequential decline of four percent and a year-on-year decline of 15 percent, overshadowing the success in the mobile sector.
H/T gamesindustry.biz
Tencent, PC gaming revenue, Chinese government, game license freeze, market value, restructuring, mobile gaming, smartphone revenue, Honor of Kings, mobile sector.