On Thursday, Tencent said it pulled its popular game, Dungeon & Fighter, from selected Android app stores amid expired contracts.
Chinese game developers are known to have contentious relationships with distributors due to revenue-sharing issues. This concern followed the increasing popularity of mobile games in the market.
The usual 50.00% revenue split has mostly been the source of disagreement between developers and Android app stores.
According to analysts, Tencent did not confirm the list from which their hit game would be removed. However, a popular local media outlet reported that Huawei, Oppo, and Vivo are included.
In 2021, the top Chinese game developer faced a similar conflict. Huawei took out multiple games from its application marketplace, driven by a profit-sharing dispute.
The news shocked netizens since the phone manufacturer accounted for 43.00% of the smartphone market. Also, many of its users played Tencent games like Honour of Kings.
Moreover, Android app store operators from the country are known for getting around 50.00% of a video game’s earnings as commission.
On the other hand, the Dungeon and Fighter game succeeded on Apple’s mainland China app store. On the second day of its domestic launch, it beat the daily revenue of Tencent’s Honour of Kings and Peacekeeper Elite.
Huawei Nears Deal to Allow Tencent App’s Full Operation
According to reports, Huawei Technologies is close to agreeing to the entire operation of Tencent’s WeChat super app. It would enable it to run on its mobile operating system, Harmony OS, without sharing revenue.
The agreement aims to defend Huawei’s newfound lead in rivaling Apple in China. Under the deal, Huawei will not charge the game developer any fee for in-app transactions associated with WeChat.
Additionally, their deal marks the app as a rare exception in the company’s strategy to start charging fees on its store.
Currently, Huawei has not charged fees in Harmony OS as an effort to reel in developers and publishers.
