Tencent has received its first video game license after a period of intense pressure for Chinese tech companies.
This could mean that the world’s largest gaming conglomerate may be able to start producing more games for its local market.
Calm after the storm
Tencent received its first game license from the National Press and Public Administration (NAPA) since May 2021.
The license was for mobile-only Metal Slug: Awakening and was part of over 70 licenses granted by the NAPA.
This is noteworthy as the Chinese Community Party (CCP) recently cracked down on major tech companies – especially video game companies.
This included an antitrust fine for Tencent and the government limiting gaming hours for those under eighteen – 1 hour per weekday and 2 hours on the weekend.
It also had a 6-month video game licensing freeze lifted in April this year, but it still only received its first license in November.
Focus on overseas investment
Although the move may provide some good news, Tencent has already shifted focus to international gaming markets.
Tencent has been investing in international developers for over a decade, but their current policy on takeovers has only seen them buying majority stakes in companies.
For example, last year, Tencent took over British developer Sumo – the developers of Crackdown 3 and Sackboy: A Big Adventure – in a $1.3 billion deal.
Adding numerous overseas titles will allow Tencent’s gaming division room to grow internationally, which will likely be necessary as the domestic future remains uncertain for major tech companies in China.