Video games accounted for 32% of Tencent’s total revenue in Q1 2022.
The Chinese tech conglomerate generated $21.3 billion in Q1, an 8% increase year-over-year — the slowest revenue growth for the world’s largest video game developer since 2004.
The results edged the $20.2 billion in revenue the company generated in Q1 2021.
Tencent saw a surge in revenue in Q1 for its latest “League of Legends” title but declines in revenue from “Call of Duty Mobile,” “Moonlight Blade Mobile,” and other titles.
- Domestic games made up 24% of Tencent’s total revenue in Q1.
- International games accounted for 8% of revenue, up from 7% in Q1 2021.
CNBC reported that Tencent has lost roughly $470 million in market value since its peak last year. The tech giant looks to get back on track after Chinese regulators resumed approvals for new video game licenses in April, ending a nine-month crackdown on the world’s largest gaming market.
The decision to suspend licenses for new games comes after Chinese state media branded online games “mental opium” and added that they have a negative impact on the health of minors — which led to new regulations restricting children to three hours of gaming per week.
Imminent Changes
Last week, Tencent announced that it will be changing the organizational structure of its sports business department. The conglomerate plans to cancel six of its internal business groups.
About 100 employees of the department will be laid off — roughly a third of its workforce.
