Home » IT

Tencent profit drop blamed on wait for new games approval

18 August, 2018, 02:47 | Author: Lydia Fleming
  • A weaker yuan makes Chinese exports cheaper cushioning the impact of the tariffs imposed by US President Donald Trump

Revenues rose 30% to 73.7 billion yuan ($11.1 billion), but fell short of the 77.3 billion yuan projected by analysts, according to Thomson Reuters. In a report via TheStar China has effectively put a temporary ban on all new game releases due to a massive shakeup in the censorship agency.

China is the world's largest gaming market, with an estimated US$37.9 billion (£30 billion) in revenue, according to research by Newzoo.

On Monday, regulators halted sales of Monster Hunter: World less than a week after its launch.

Not only did China clamp down on popular title Monster Hunt, but Tencent still doesn't have the approval to bring PUBG or Fortnite to PC in China, and its financial results show some slowing.

Additionally, after China's content regulator went through reforms, many firms are still waiting to be granted licenses for new games which have been on hold since March. Tencent's hugely popular mobile game, Honor of Kings, also fell victim to regulations past year, over concerns that teens were spending too much time on it. It said it cashed out of startups such as Ele.me and Mobike to raise capital to bankroll new services such as game live-streaming and in traditional retail.


It is not going well for Tencent when it comes to this game.

Under pressure to curb gaming marathons on Tencent's smash hit "King of Glory" mobile multiplayer battle game, the company previous year started restricting daily playing times for children.

"The only problem that we have is that one of our biggest games, PUBG Mobile, is not monetizing". The Japanese games industry has suffered too, with Capcom's shares dropping 2.7 percent and Konami falling 4.2 in the wake of the freeze being reported. Monthly active users climbed nearly 10 per cent to 1.06 billion in the June quarter - a massive population of consumers not just for games and ads but also fledgling services from video to financial services.

Talking about Tencent, it seems to be that Tencent is already going to a rough patch and now this seems to have stirred a lot of tension for them. "Insane to think that because of leadership shift on top, the world's biggest gaming companies are in complete disarray". A closely watched Communist Party newspaper publicly chastised Tencent past year over the game, claiming it caused addiction in young people. Alibaba Group Holding affiliate Ant Financial was initially cheered for providing everyday people and small businesses with easier access to loans and other financial products.

Recommended:



Popular

Heavy rain in NYC may bring street flooding
Sunday's forecast calls for partly sunny skies with a high of 75 and a 30 percent chance of showers and thunderstorms after noon. A round of thunderstorms is projected for Friday afternoon into the evening, possibly featuring heavy rain and strong winds.

Turks smash their iPhones amid government's escalating feud with Trump administration
The Turkish lira plummeted to a record low on Monday, losing almost 40 percent of its value since the start of 2018. Turkish authorities have called on their citizens to sell their foreign currency in order to bolster the lira.

Rescue mission underway after Italian bridge collapses in Genoa
Dangers include unstable piles of rubble, while the remaining parts of the bridge are being assessed for further risk of collapse. A rescue mission is under way after a major motorway bridge in the Italian city of Genoa collapsed.

Looks Like Idris Elba Won’t Be James Bond After All
Daniel Craig will continue his role as James Bond for one final film. "You need a guy with physically strong presence ". The first was a heavily filtered selfie of the top half of his head with the caption, "my name is Elba , Idris Elba ".

North, South Korea agree on third summit to be held in Pyongyang
Security Council to choke off funding for Pyongyang's nuclear and ballistic missile programs. This would be the third summit between both the leaders.

Turkey’s lira crisis threatens to undermine global economy
That is an unsubtle plea for the courts to end the U.S. -Turkey standoff by taking the Brunson decision out of Erdogan's hands. The problem with Erdogan's new strategy is that it will have a much greater effect on the Turkish people than any US company.

Simona Halep Reigns Supreme in Toronto
On Friday, Halep broke Garcia in the fifth game of the second set for a 4-1 lead and had no trouble icing the win from there. The 22-year-old Australian has now won eight of her last nine matches on hard courts and leads the WTA in grass-court wins.

Pedestrians injured in crash outside Parliament in London
Armed police swooped into the area, arresting the driver and cordoning off streets surrounding the heart of Britain's government. The driver has been arrested and authorities say the Metropolitan Police Counter-Terrorism Command is leading the investigation.

Omarosa's Recording Is a 'Violation'
The dispute has been building for days as Manigault Newman promotes her memoir " Unhinged ", which comes out officially Tuesday. So when Trump's defenders accuse her of being "a totally disloyal individual" and "uniquely untrustworthy", they have a point.

Kapil Dev, Sunil Gavaskar, Navjot Singh Sidhu invited for Imran Khan’s swearing
The NA speaker will be elected first after which he will conduct the election of the deputy speaker. He further claimed that his party has the support of 180 members in the National Assembly.