Tencent is steadily adding to its gaming portfolio following a crackdown in the world’s largest gaming market.
The Chinese video game and internet conglomerate has been granted approval to secure licenses for blockbuster gaming titles, helping the company rebound amid a declining market.
In April, Chinese regulators resumed approvals for new video game licenses after a nine-month hold due to a government crackdown. Chinese state media branded online games as “mental opium” and a health detriment to minors, leading to regulations restricting children to three hours of gaming per week.
- Riot Games’ popular shooter title “Valorant” was among the group of approved titles.
- Tencent had more than 40 licenses for foreign titles approved in December.
- The group included “Pokémon Unite” — a title Tencent co-developed with Nintendo.
Tencent’s gaming portfolio isn’t its only sector getting a boost.
In January, the company sold off a $3 billion stake in gaming and e-commerce company Sea to allocate funds to other businesses and social initiatives.
Tencent is one of several gaming companies struggling to drive profits following a surge in sales during the pandemic.
The company generated $19.7 billion in revenue in Q3 2022, a 2% drop compared to the same period last year. Profit reached $4.7 billion during the quarter, down 3% compared to Q3 2021.
The global gaming industry is expected to be worth $321 billion by 2026, but the market could see its annual sales decline in at least a decade this year depending on holiday season sales.