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Tencent uses clout to negotiate better revenue share on Chinese Android stores

Tencent uses clout to negotiate better revenue share on Chinese Android stores

Tencent has used its significant clout in China's mobile games industry to negotiate better revenue splits with third-party Android stores in the country, according to a report.

GameLook reports (via Technode) that China's largest publisher will now only give up a 30 per cent share of its sales to a number of storefronts, as opposed to a more typical 50 per cent split.

Exerting influence

Marketplaces said to have agreed to the new deals include the Huawei and Xiaomi app stores, which are distributing titles such as Jian Wang 3 Mobile and PopKart Mobile. It's claimed that negotiations with Oppo and Vivo are ongoing.

According to the report, Tencent has attempted unsuccessfully in the past to negotiate better revenue splits.

Publishing rival NetEase meanwhile is said to have successfully struck a deal with Android stores to take a 70 per cent cut of Fantasy Westward Journey Mobile.

Tencent and NetEase are the two biggest publishers in China, dominating the top grossing charts each week. The success of the two companies has given them substantial clout in the Chinese games market, which appears to have been exerted in these recently reported cases to their benefit.

Discover more about the Chinese and wider Asia market at Pocket Gamer Connects Hong Kong on July 17th to 18th.


Senior Editor

Craig Chapple is Senior Editor of PocketGamer.biz and InfluencerUpdate.biz. He was previously Deputy Editor at Develop and Online Editor at Nintendo of Europe.

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