China ordered it to shut down Monster Hunter: World from its PC downloads service just days after its debut, while the country's watchdogs are said to have frozen approval of game licenses. Tencent in a statement said regulators had received a large number of complaints about the game, which has sold over eight million copies worldwide.
The role-playing game is the latest instalment in the long-running series developed by Japanese firm Capcom and requires players to hunt and slay fearsome fantasy beasts. The title secured more than one million pre-orders on WeGame in China prior to its release last Wednesday. Games approved before the end of March can be released, but not necessarily in all formats or monetizable versions.
Procedures for games approvals in China were already complicated enough with watchdogs for media publication, cyberspace and copyright as well as ministries for culture and information technology all being part of the process. Tencent said it was working closely with regulators to get the license, which allows it to make money on the game, for instance by selling virtual items within the app.
Personal computer games have also been hit amid slowing growth of mobile games.
That comes after what looks to be a wider lockup on videogame approvals in China.
Reporting a 2 percent decline in second-quarter net profit as well as its slowest revenue growth in three years, Tencent said the biggest hurdle to a return to rapid revenue growth was that it could not yet charge for its PlayerUnknowns' Battlegrounds (PUBG) video game in China.
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Despite being a homegrown Chinese product with huge popularity, the country's government has criticized the game for being addictive to children.
Tencent is the largest stock by market value in the MSCI Emerging Markets Index, a grouping that also includes South African-listed Naspers, which owns 31% of Tencent.
"For new game approvals, there will continue to be a drag", Alicia Yap, a Citigroup internet research analyst told Bloomberg. "If they previously didn't get an approval, it seems that there will continue to be a hold on that".
Tencent reports revenues of 73.6 billion yuan (~$10.6 billion), a year-on-year increase of 30 percent.
Xi dramatically strengthened his grip at a Communist Party leadership congress late previous year, becoming the most powerful Chinese leader since Mao Zedong.
The adult content and violence are not the only issues in the video gaming industry in China, it has also been claimed that the industry is being criticized for communicating non-socialist ideals. This news has affected the Chinese based multinational giant Tencent and even the fledgling developers.
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