With online video games being Tencent’s cash machine, their shuttering is likely to impact its revenues.
On Monday, Tencent Holdings stated, it will discontinue Texas Hold’Em poker video game from its market place. The move is aimed at complying with Chinese laws with Beijing intensifying its scrutiny over the gaming industry.
Tencent stated it will formally begin to shutting down “Everyday Texas Hold’Em” from Monday and would close the game’s server from September 25.
It will compensate users in accordance with regulations of Ministry of Culture.
The move is likely to have an impact on its profitability since a large portion of its profits come from gaming. China’s gaming industry is facing mounting challenges this year midst increasing government censorship.
In August 2018, Tencent’s market capitalization lost $20 billion in a single day over investor concerns that China’s authorities would impose limits on online gaming due to rising levels of myopia.
According to Tencent’s spokesman, the plan to close down the game was a “business adjustment” and declined to comment any further.
As per a source within Tencent’s gaming division, who preferred the cover of anonymity since he was not authorized to speak publicly, games such as chess and card games were falling victims to increased Chinese scrutiny since they were closely associated with gambling – an illegal activity in mainland China.
Before the crackdown, Tencent’s Texas Hold’Em was one of its most popular games where multiple players use mind games, bluff to predict their opponents’ behavior to win money in the pot.