Tencent, which was part of the PUBG Mobile Corporation, was removed as an entity from PUBG after the Government of India banned PUBG and 118 Chinese apps due to the ongoing tension between India and China over the Galwan Valley incident. The presence of Tencent in PUBG Mobile corporation had become a sore point and Krafton Inc, the parent company of PUBG Mobile in India, removed Tencent as one of the first steps in the app getting back to India. However, despite the removal of Tencent, PUBG Mobile India was not given permission to relaunch back in the country.
The ban on Tencent had resulted in a loss of USD 34 billion in just two days in September 2020 but now, Tencent is in further trouble. According to a report in Reuters, Tencent`s online game offerings have been removed from Huawei`s app store since the two companies failed to reach an agreement on revenue sharing, Tencent and a source said on Friday. "Due to the failure of Huawei’s mobile game platform to renew its contract with our Mobile Game Promotion Project Agreement as scheduled, relevant products of Tencent Games were suddenly removed from the shelves early this morning," Tencent said in a statement. “At present, active communication is being made to try to resume as soon as possible," it said.
Tencent’s troubles mount
Tencent sells some of the top-ranked online games worldwide, while Huawei has a 41.4% share of the China mobile phone market and 14.9 percent of the global market, according to data from market research firms IDC and Canalys. A source said the games were removed because the companies could not agree on a revenue sharing deal for the app store sales. Huawei insists on receiving a 50 percent cut, the source said.
Huawei did not immediately respond to a request seeking comment. Tencent did not immediately respond to a request seeking comment on whether the firms had disagreed about revenue sharing. There was already some resistance from games developers to Huawei`s revenue demands. This included Shanghai-based developer Mihoyo, which last year decided not to place its hit game "Genshin Impact" on Huawei`s app store because it did not agree with the commission structure for sales.
