Chinese internet giant Tencent has been excluded from the state government's first licensing of video games since March.
Chinese regulators approved the release of 80 online video games after one month on Saturday. long freezing, Reuters first reported. None of the approved titles listed on the list came from Tencent Holdings, the world's largest gaming company.
Licenses are typically assigned in order of appearance when the studios file their applications, some game developers told TechCrunch. The waiting list contains at least 7,000 titles, of which only 3,000 will be officially licensed by 2019, China's 21
The controlled and gradual process of thawing is in line with the announcement of a senior official on December 21st The gambling regulator is trying its best to bring titles to the market as soon as possible, with a large number of applications in the pipeline said the official. Without licenses, studios can not legally monetize their titles in China. The regulatory break significantly reduced profits in the world's largest gambling market, which grew by 5.4 percent year-on-year in the first half of 2018. This is the lowest rate in the last decade, as a Beijing-based research firm reports GPC and China's official gambling association CNG.
Tencent is best known as the company behind WeChat, a highly popular messaging platform in China. However, much of the revenue comes from games. Despite the recent decline in gaming revenue, the company has a thriving company that owns multiple companies, including Activision, Grinding Gears Games, Riot and Supercell. In 2012, the company participated with 40 percent in Epic Games, the manufacturer of Fortnite . Tencent also has alliances or publishing deals with other video game companies such as Square Enix, the creators of Tomb Raider .
The ban on new video game titles in China has affected Tencent's bottom line. The company reported that gambling revenues declined by 4 percent in the third quarter due to the prolonged license freeze. At the time, Tencent claimed that there were 15 monetization-approved games in the pipeline. To counteract pressure in the consumer goods business, the Chinese giant initiated a major reorganization in October to focus more on business-related initiatives such as cloud services and maps. Founder and CEO Pony Ma said the strategic repositioning will prepare Tencent for the next 20 years.
"In the second phase, we want to give our partners in different industries a better connection with consumers. open and networked ecosystem, "said Ma.  China has tightened its requirements in 2018 to combat games that are considered illegal, immoral, of poor quality, or that have negative social implications, such as: For example, children who are addicted or short-sighted. This means that studios, regardless of their size, need to consider new production and user interaction policies. Tencent had imposed its own restrictions on gambling in an apparent attempt to calm regulators. The company has expanded its age verification system to curb the use of young players, and limits have been placed on daily play.
Update (December 30, 10:00, GMT + 8): Adds context to China's gambling industry and Tencent.