×
You will be redirected back to your article in seconds

China Woes Hit Japanese Games Developers

The shares of Japan’s leading video games firms dropped Wednesday in what was seen as a reaction to the woes of the games sector in China.

Shares of Nexon dropped 5.86% to JPY1,318 at the close of business on the Tokyo Stock Exchange. Capcom was down 2.7% at JPY2,558. Konami tumbled 4.17% to JPY4,710, and Nintendo fell 2.95% to JPY34,850. They compare with an overall slip of just 0.68% for Japan’s Nikkei 225 index.

The slumps followed the halt in sales Monday of Capcom fantasy “Monster Hunter: World” by Tencent subsidiary WeGame, on the orders of Chinese regulators. Tencent said it would reimburse the roughly 1 million players who had paid $43 apiece for the game.

China’s games industry regulator said it had received several complaints about “Monster Hunter: World,” which is rated for players ages 13 and up in the U.S. Other sources say the move reflects infighting within China’s media and entertainment regulatory system, which has led to a backlog of games and feature films that await approval and that are unable to commit to marketing campaigns for lack of a launch date.

Some media reports say the bottleneck means that digital giant Tencent does not yet have permission for desktop versions of “PlayerUnknown’s Battlegrounds” and “Fortnite,” two of the world’s hottest games at the moment. Tencent also does not have permission to monetize the mobile version of “PUBG,” for which it has 170 million installations.

Tencent’s shares were down 3.44% on Wednesday, following a more than 3% fall on Tuesday. They stood at HK$336.6 at 3:45 p.m. local time in Hong Kong.

Tencent’s second-quarter results, due to be published after trading closes Wednesday, will be closely scrutinized for any regulatory impact on the company’s finances and any commentary on its future direction. Tencent is China’s largest games distributor, and by revenue is also the biggest in the world.

More Gaming

  • Starbreeze Aims For Stability After Sustaining

    Starbreeze Aims For Stability After Sustaining a $135 Million Loss in 2018

    Swedish video game publisher Starbreeze AB tallied up its losses in its full year and Q4 report for 2018 on Wednesday. The troubled company suffered a loss before tax for 2018 that was more than 1.26 billion SEK, which is the equivalent of more than $135 million USD. The company made some money from “Overkill’s [...]

  • The Video Game is You: An

    The Video Game Is You: An Approach to Video Game Criticism

    When two systems cross paths, a choice must be made. This is universally true. The conduit of this choice is, of course, you. When you wake up in the morning and the digestive system of your body crosses its path with the food ecology of your kitchen, you choose. You choose what to eat, you [...]

  • Schell Games' 'Until You Fall' Is

    Schell Games' 'Until You Fall' Is VR Sword Fighting Game

    Schell Games revealed its latest project, a “magic-infused” VR sword fighting game known as “Until You Fall.” The upcoming title will find players mastering their own combat style as they take on humanoid creatures, monsters, and a variety of other threats. Roguelike elements ensure that they’ll still make progress, however, even if they happen to [...]

  • Red Hook Studios Is Working on

    Red Hook Studios Is Working on a 'Darkest Dungeon' Sequel

    Lovecraftian role-playing game “Darkest Dungeon” is officially getting a sequel, developer Red Hook Studios revealed on Tuesday. “In the howling darkness of the end, men will become monsters,” the reveal trailer states. “But hope will ride with those courageous enough to carry the flame.” The video shows a snowy, mountainous landscape and six characters from [...]

  • Tim Schafer14th British Academy Games Awards,

    Double Fine Next Game After 'Psychonauts 2' Likely a 'Not Sequel'

    Tim Schafer isn’t yet talking about what game will come next for Double Fine Productions following the release of “Psychonauts 2,” but he has some general ideas. “We’re doing a sequel right now and I have an urge to make a not sequel,” he told Variety during a recent interview. The problem, he went on, [...]

  • Paradox Interactive Had Its 'Best Year

    Paradox Interactive Had Its 'Best Year to Date' in 2018

    Video game publisher Paradox Interactive just had its “best year to date,” CEO Ebba Ljungerud said during a financial results report on Tuesday. The company had its best income quarter in Q4 2018, despite not releasing any new games during that time. Revenues increased 51% to 336.9 million SEK (about $36 million USD) compared to [...]

  • 'PUBG Mobile' x 'Resident Evil 2'

    'PUBG Mobile' x 'Resident Evil 2' Debut 'Zombie: Survive Till Dawn' Crossover Event

    “Resident Evil 2” meets “PUBG Mobile” with the portable battle royale’s new gameplay mode “Zombie: Survive Till Dawn,” available now. The new collaboration between the mobile iteration of “PUBG” and the survival horror hit “Resident Evil 2” launched on Tuesday, featuring three days and two nights of in-game time all rolled up into one 30-minute [...]

More From Our Brands

Access exclusive content