In the past two months, the stock market value of the Chinese firm has lost 160 billion dollars.
Tencent is one of the largest gaming companies and the leader in China. But here it is: the Chinese government controls the sector enormously and it is several months since licenses are no longer issued. Result? Tencent no longer offers new stocks and sees its stock fall on the stock market – $ 160 billion valuations in just two months! A crisis that could strengthen over time, pushing the firm to move towards a new strategy to survive the surge of measures of the Chinese government, which does not appreciate the gaming environment.
Tencent will have to take restructuring measures
Tencent is in a bad patch, probably the worst of its history. While licenses are no longer given to games for distribution, in-app purchases of beneficial titles – Clash of Clans, LoL or PUBG Mobile – may well be censored as well. Not to mention that the playing time of some players will be reduced depending on age. Monster Hunter World, which announced a success in China as the previous opus, saw its distribution canceled.
The Chinese firm is therefore obliged to restructure to focus its strike force on the Cloud side but also research and development. The end of in-app purchases would be a disaster for the giant, especially when you know that the country is a big producer with local companies very appreciated. Xiaomi, Oppo, OnePlus, Huawei, Honor. The smartphone gaming has a big place in China. How far will the government stop in its censorship? This is undoubtedly the big question posed by the players of the country!