Tencent’s Shares Take a Dip After Monster Hunter Faces a Regulatory Hurdle
While gamers were gearing up to hunt the latest monstrous beasts, investors were left holding the bag. Tencent Holdings Ltd’s stock slid over 3 % on Tuesday, following the announcement that one of its blockbuster titles – Monster Hunter: World – had been pulled from the Chinese platform WeGame.
What Went Wrong?
- On August 8, Monster Hunter: World launched in China. Just a week later, regulators spotted a flurry of complaints claiming portions of the game didn’t align with local rules.
- After receiving a “large number of” complaints, the Chinese watchdog ordered the removal of the game from WeGame.
- Daiwa Capital Markets flagged the release as a key launch for Tencent’s second half of 2018 but the sudden ban turned optimism into uncertainty.
Refunds and Future Play
Tencent’s notice promised that anyone who bought the title can get a full refund by August 20 or, if they choose, they can keep playing. However, there’s no guarantee the game will stay available.
Other Games in the Crosshairs
It’s not the first time Tencent’s titles have faced scrutiny. Earlier this year, the company had to revamp a popular battle‑royale game to meet “socialist core values” after regulators found the original version too graphic.
Looking Ahead
With Tencent expected to report half‑year earnings on Wednesday, investors remain wary. While the Hang Seng index dipped modestly, the heavy lifting for Tencent’s market performance could hinge on how it navigates China’s regulatory maze.