Tencent, the producer of PUBG Mobile and Call of Duty Mobile, one of the most popular mobile games in the world, is also the producer of League of Legends and Valorant. Owner of Riot and owns 40% of Epic Games. The company is also China’s two largest social media outlets. WeChat and Tencent owns QQ.

As such, Tencent is among the largest companies in both China and the world. It is also known that Tencent also provides technology support to the Chinese government and the British government. However, it seems that the company has been struggling to recover financially lately.

China’s stagnant economy hit Tencent hard

Recently, Tencent announced its Q3 2022 earnings compared to the previous quarter. announced that they made 2% less profit. In addition, officials who reported earning 2% less than last year attributed this to China’s economic setbacks. Tencent, which prepares most of its projects specifically for China and derives its main revenue from China, said the country’s adverse economic conditions have affected them and He explained that this situation is also reflected in his products.. Of course, 2% less profit may not mean much at first glance, but Tencenti A company that spends almost all of its profit on R&D research Even this difference of 2% affects the company deeply.

Tencent’s social media and video platforms have taken action to minimize the drop in revenue with more aggressive advertising policies due to these negative aspects. While users are not satisfied with these new advertising strategies, Tencent He also promised that they will establish a more user-centric advertising system in the future..

The quality of the games is also deteriorating.

In addition, Tencent’s special offer for China “Honor of kings” and “Peacekeeper Elite” is one of the company’s main sources of income. Thanks to Chinese players who like to spend money on in-game purchases, the company has millions of dollars per year (claimed to have earned $1.7 million in 2021 alone from in-game expenses) he earns from in-game expenses alone. However, these purchases have become close to zero in recent months.

In addition, PUBG Mobile, which the company offers worldwide, Call of Duty mobileGames like League of Legends Wild Rift also receive delayed updates, problematic updates, and even started losing users due to vulnerabilities in the anti-cheat system. According to industry experts, the only reason why these games are neglected is because Tencent is currently facing financial difficulties.

The company’s CEO said that he would not have any financial problems in 2023 and that he would continue to expand the company. announced that they will make users happy with new projects not only in China but all over the world..