Tencent Q2 earnings 2018

The monetization problem Tencent is actually talking about refers to the crackdown through Chinese regulators. cEarlier This kind of week, authorities stopped Tencent through selling “Monster Hunter: World,” a very well-known online game created by Japanese gaming firm Capcom. Tencent has the license to sell This kind of in China.

There are also additional headwinds for Tencent’s gaming business. The first involves another mega-hit known as “PlayerUnknown’s Battlegrounds,” or PUBG, a massive multiplayer online game in which Tencent has the rights to run in China. Regulators have still not approved the monetization of the game. Last year, Tencent had to alter PUBG to fit in with the regulator’s view.

Another major Tencent title called “Honor of Kings,” which is actually one of the highest-grossing mobile games in China, has also faced scrutiny. Last year, Tencent put a limit on the amount of time kids could spend on the game after complaints through the authorities in which children were getting addicted.

Meanwhile, Bloomberg reported Wednesday, citing sources, in which China’s regulators have frozen game approvals, which could weigh on Tencent’s business.

PC client games revenues were down by 5 percent year-on-year along with also also down by 8 percent quarter-on-quarter to 12.9 billion yuan. In total, online games revenues, which includes both smartphones along with also also PC, increased by 6 percent year-on-year to 25.2 billion yuan.

Tencent is actually trying to reinvigorate growth in its key division by trying to monetize tactical tournament games, boost engagement with existing titles, along with also also also introduce brand new games in which have a high average revenue per user metric.

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