Tencent games revenue in focus after China blocks โMonster Hunter: Worldโ โ Reuters
What happened: A stock price tumble wiped out over $15 billion in Tencentโs market value amid concerns about its gaming revenue. The fall came after regulators blocked the sale of blockbuster game โMonster Hunter: Worldโ on Tencentโs WeGame platform. Analysts expected the Capcom-developed game to be one of Tencentโs biggest sellers but its listing disappeared within a week of its release after regulators reportedly received a large number of complaints about its content.
Why itโs important: Chinaโs entertainment industry has increasingly been at odds with regulators in recent months. Short video platforms and video game distributors and developers have been hit hard in a crackdown on โvulgarโ and โinappropriateโ content in a government-led move to increase its control over cultural content. Tencent had to alter โPlayerUnknown Battlegroundโ (PUBG) last year before it was allowed to distribute the game as it was deemed too violent. Additionally, after Chinaโs content regulator went through reforms, many firms are still waiting to be granted licenses for new games which have been on hold since March.
