The major Chinese offerings of Tencent Games have been renewed to Huawei’s App Store after they were briefly removed, following a dispute over revenue sharing between the two companies.
The two companies subsequently reached an agreement on the dispute. An official spokesman for Tencent, speaking to Bloomberg News, said:
“We will continue to work together to provide a better experience and service to the Tencent game community,”
Earlier, on 31 December 2020, all offers of Tencent Games were removed from the Huawei App Store, after the first one underwent a “major overhaul” of how the two companies would work on forward.
Tencent is back on Huawei Store, but for how long?
According to a source from the Finance Post, the controversy was about the revenue division between the two companies. Huawei was said to want to get 50% of its total revenue.
Earlier too, some other game developers were against Huawei’s high-income claims. Among the top of the list was Chinese game developer Mihoyo, which was not titled “Genshin Victory,” aired on Huawei’s App Store last year.
According to Financial Times, Genshin Impact was not placed on the Huawei App store because it did not agree with the commission structure for sales.
Huawei has begun rolling out Tencent games to their app store, marking the end of the controversy that began earlier today.
Huawei, one of the leading android app stores in China, will charge 50% acceptance rate on all IAPs. Tencent had been trying to negotiate to reduce this. https://t.co/6QED4Ba4pY pic.twitter.com/QJr7CKq4mR
– Daniel Ahmad (@ZhugeEX) January 1, 2021
The high revenue demands are coming behind Huawei’s grip on the Chinese smartphone market. As the company is the largest smartphone manufacturer in China, it charges a 50% tax on IAP compared to the standard 30%.
According to Daniel Ahmad, senior analyst at Niko Partners, Tencent has been looking to gain a higher share for itself on third-party Android stores, using its levers as its largest gaming company. in China.
They have been pushing for changes this year as third – party sources have declined in importance and distribution has just grown.
With this turn of events, it would be interesting to see how things between the two companies open up in the coming years.
Published 02 January 2021, 00:10 IST