Tencent has cancelled a mobile game utilising Square Enix’s ‘Nier’ IP after two years in development, according to a report.

Reuters cited three people with knowledge of the matter as stating the title had struggled to find a “compelling monetisation model”.

The firm was allegedly also concerned about an expensive development budget and cost of using the licence, with the sources claiming royalty fees for such deals are typically in the region of 15% to 20%. Tencent was reportedly only willing to part ways with 10% of revenue.

Prior to its cancellation, the title was said to have had an internal playable demo.

Moving off mobile

In January, Square Enix announced that it was shutting down another mobile game utilising the licence, Nier Re[in]carnation, with servers set to close on April 29th, 2024.

The title was originally released in 2021 and has generated $98.6 in lifetime gross player spending across the App Store and Google Play, according to Appmagic data.

Prior to that, Square Enix released the Platinum Games-developed Nier: Automata in 2017 on PC and consoles, shifting more than 7.5 million copies to date.

News of Tencent’s game cancellation comes shortly after the company’s chairman Pony Ma said the firm had been “resting on its laurels” in the games space.

“Gaming is our flagship business... But in the past year, we have faced significant challenges,” said Ma.

“We have found ourselves at a loss, as our competitors continue to produce new products, leaving us feeling having achieved nothing."