Tencent Games restores in Huawei app store post dispute

2 Jan, 2021 Business News 203 0 Comment

Tencent Games and Huawei see to have buried the hatchet on a dispute, which resulted in Tencent games being removed from Huawei’s play store

In a quick turnaround of events, Huawei’s app store has reinstated Tencent’s online games today, after removing them from its store yesterday. The decision was initially undertaken by Huawei as the company stated that Tencent had made a big change in the manner in which both companies work with each other.

A revenue sharing debacle

Legal advisors at Huawei had recommended the move to the Chinese mobile giant as Tencent wanted to halt future cooperation. Tencent in its defense said that the existing business promotion agreement between the companies had expired before a new one could be formulated. Also as per Tencent, Huawei was insisting on a 50% sales share in Tencent’s game revenues on the app store and this was not acceptable to Tencent. The decision resulted in the Chinese version of Tencent Games’ Arena of Valor along with many other titles not available on Huawei’s online app store.

This is not the first instance of a game developer standing up to Huawei’s increased revenue demands. Mihoyo, a Shanghai-based developer, had last year opted out of placing its Genshin Impact game on Huawei’s app store due to the unprecedented commission clauses by Huawei.

A market compulsion in play

The initial authority by Huawei to remove Tencent games came from the fact that Tencent’s offerings are not available in China and it is therefore compelled to sell its apps through device manufacturers. This gives an upper hand to Huawei, which is the Asian country’s largest smartphone maker, owning 43% shipments in the quarter ended September 2020. It boasts of a 41.4% market share as of today.

When today, games from Tencent were re-added to Huawei’s app store, the US-based developer said in an official statement that both parties have mutually agreed to continue the joint collaboration and will strive to offer a better customer experience and service in the future. Huawei on its behalf also reiterated its commitment towards working in harmony so that customers do not suffer due to such operational bottlenecks.

  • Tencent

    Tencent Games was launched in 2003, and has since grown into a leading global platform...

  • PUBG

    PUBG is a competitive survival shooter formally developed/published by Bluehole. PUBG is now being developed...

Anwesh Koley

POSTS BY Anwesh Koley

Anwesh has been a journalist for more than a decade and has worked across myriad sectors ranging from automotive, power, energy, finance, and SMEs. He is currently responsible for churning out relevant and exciting content for Ultimate Battle News.

19 Oct, 2021 Business News

ESL Gets Norton Onboard as Its Official Cyber Safety Partner

Ace Tournament organizer ESL Gaming has collaborated with renowned cybersecurity...

Krafton Loco
29 Jun, 2021 Business News

Krafton Inc. invests in Indian Game Streaming service Loco

Live streaming Indian platform Loco has secured $9 million funding...

DOTA: Dragon’s Blood teaser
12 Mar, 2021 Business News

Netflix shares DOTA: Dragon’s Blood Anime video to update Viewers

Netflix has released a short informational video for gamers and...

Valve Apple & Epic Games
24 Feb, 2021 Business News

Valve gets dragged into Apple and Epic Ongoing Legal Battle

Epic Games is fighting a legal battle with Apple over...

Next Post