Tencent’s online game offerings have been removed from Huawei’s App Store as the two companies failed to reach an agreement on revenue sharing, Tencent and a source said Friday.
“Due to failure Huawei Mobile Game Platform to revamp related products, as scheduled with our Mobile Game Promotion Project Agreement Tense games Suddenly removed from the shelves this morning, ” Tensent Said in a statement.
“Currently, active communication is being made to restart as soon as possible,” it said.
While Tencent sells some of the top online games worldwide, Huawei has a 41.4 per cent share of the Chinese mobile phone market and a 14.9 per cent share of the global market, according to market research firm IDC and Canalis data.
A source said the games were removed because the companies could not agree on a revenue sharing agreement for the App Store sales. Sources said that Huawei is holding out to receive a 50 percent cut.
Huawei did not immediately respond to a request for comment. Tencent did not immediately respond to a request for comment on whether the companies disagreed about the revenue share.
There is already some resistance to Huawei’s revenue demands from game developers. It also includes Shanghai-based developer Mihoyo, which last year decided not to place its hit game “GeneShine Impact” on Huawei’s App Store because it did not agree with the sales commission structure.
© Thomson Reuters 2020
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