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Tencent Games back on the Huawei App Store post negotiations

Tencent Games back on the Huawei App Store post negotiations

Barely a day ago, reports stated that Tencent Games were no longer a part of the Huawei App Store. The outcome resulted from an issue that cropped up when both the firms could not reach a consensus over sharing their profits or revenues. Tencent even released a statement stating that both the companies were still involved in active discussions and tried to find a way that works in favor of both. Now, it looks like both of them have reached a decision. According to the latest information, the games app has found its place back in the Huawei App Store.

Tencent’s source has claimed that Huawei vouched for a 50% share of the total revenue generated by Tencent Games, which was not agreeable to the former. As both the firms could not arrive at a mutual decision, Tencent Games ultimately was shown the Huawei App Store door. It looks like the decision to get it back on the app store results from talks between the two companies. “Both sides will continue to work together to bring better experiences and services to consumers,” was what a Tencent spokesperson had to say when queried by Bloomberg News.

Tencent owns some of the most wanted online games that are quite well-known and in high demand worldwide. At the same time, about 41.4% of the Chinese smartphone market is being dominated by Huawei. On a global level, Huawei accounts for a 14.9% share within the smartphone market, according to global technology market analyst organizations IDC and Canalys.

That is not the first time that game makers have been having issues working on the Huawei App Store. During the previous year, Mihoyo, a game maker in China, had decided against keeping its very famous game Genshin Impact within the Huawei App Store after it was not in favor of the manner in which the complete sales commission was being handled within the app by Huawei. At that time, the Financial Times went on to report that Mihoyo was not very happy with the commission being given to game developers for their sales conducted within the platform of the app.

Huawei’s heavy demands for revenue from other apps within its app store indicate that the smartphone manufacturer holds heavy importance in China. It is one of the major mobile makers within the country. Due to these factors, Huawei expects a 50% share from in-app purchases from the other apps. Normally, in-app purchases account only for 30% of the fee coming in from the sales.

Daniel Ahmad, a senior analyst, working for Niko Partners, reveals that Tencent is on the lookout for an alternate app-store that would give the game developer a bigger share from its sales. It is one of the major game developers in China. During this year, the demand for third-party app-stores has gone down considerably, and weightage is more towards direct sales.

It would be interesting to see that going forward would come across between Huawei and Tencent. So far, Huawei has not yet issued any statement regarding any of these developments.

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