Saturday, 2023 September 23

Even with one more title on China’s gaming whitelist, Tencent still has its cash-cow titles in limbo

China’s gaming and social networking giant Tencent had one new game called the Romantic Rose Garden approved by the country’s regulators Thursday,

This new title, which is a game that involves planting digital flowers, was one of 95  games from different companies to successfully secure a license, as part of the fifth batch of games to undergo regulatory vetting.

China had in December 2018 lifted a 9-month freeze during which no new games were approved and is now working through a backlog of hundreds of games.

The freeze was a shock to the entire gaming industry. Its largest player, Tencent, recorded its first-ever profit drop during that time, which triggered a downward streak for the company’s shares, which are listed on the Hong Kong Stock Exchange.

Tencent saw none of its games approved in the first three batches until Wood Joints and Folding Fan, which teach traditional Chinese architecture and craftsmanship, got the go-ahead in the fourth batch. However, analysts worry that the newly approved games are unlikely to generate much revenue for Tencent.

The firm’s biggest titles Player Unknown’s Battlegrounds (PUBG) and Fortnite still have not shown up in the fifth batch, facing regulatory uncertainty.

Tencent wasn’t able to cash in at the peak of their popularity at the free-trial stage as only after the approval can commercialization begin.

Editing: Nadine Freischlad

Jingli Song
Jingli Song
I believe Chinese innovation at various level needs to be known by the world.

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