Game makers not worried by China’s freeze on approving new games
Tencent has a stock of pre-approved games to buffer the impact and NetEase will focus on growing overseas
There are more gamers in China than anywhere else. But since March, those gamers have had a little bit of a problem: The government hasn’t approved any new games for sale.
The reason is allegedly a bureaucratic matter, as the reorganization of departments causing a mess that has backed up approvals vital in a country that loves regulation.
Now, that doesn’t necessarily mean there haven’t been new games available. Some games got their approval before the freeze; others slipped through, but without any monetization options.
But as the freeze drags on (and on, and on) with no end in sight, how are companies planning to deal with it -- and how will gamers get new titles to play?
TENCENT
As the world’s largest gaming company by revenue, responsible for games like Arena of Valor and PUBG Mobile, the Shenzhen-based company is obviously affected by the freeze.
Arena of Valor, China’s mobile League of Legends, is aiming to be the world’s go-to mobile esport
As for smartphone revenue, that actually rose in the last quarter -- thanks to good planning from Tencent. Niko Partners’ Daniel Ahmad said the company actually had a number of games that were approved prior to the March 28th cut-off date when game approvals stopped.
“Tencent has been able to spread these releases through the year in order to drive growth in its smartphone games segment. Many of these new titles have found success this year, debuting in the iOS top 10,” Ahmad said.
In fact, Tencent still managed to roll out 10 mobile games this quarter. The company told investors that it currently still has 15 unreleased games in development that have already received monetization approval.
But Ahmad said Tencent is still in a very tough situation because the company has more than 40 games in its pipeline but only 15 have been approved.
What if the approval freezes continues after those 15 games are published? Ahmad said Tencent will then have to buy approved titles from other companies and distribute these games itself.
NETEASE
Meet NetEase, China’s second-largest game publisher
How is that happening? Because NetEase is focusing on their efforts outside of China.
He then added that the company sees the opportunity to develop Diablo Immortal as a huge opportunity to show Western gamers what NetEase can do.
WESTERN PUBLISHERS
Of course, Chinese companies aren’t the only ones selling their games in China.
None said they were too worried, and suggested the problem will sort itself out sooner rather than later.
But it still remains to be seen how long the freeze will go on for… and when gamers can finally enjoy an uninterrupted stream of games.
We played the Chinese game that fans allege Diablo Immortal is based on
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