Dispute Erupts Between Game Companies and Mobile Phone Manufacturers

25 Jun 2024

The ongoing dispute between leading game companies and mobile phone manufacturers has once again come to the forefront. On June 19th, Tencent, acting as the distributor, made an official announcement that the popular mobile game “Dungeon & Fighter: Origin” (DNF) will no longer be available on certain Android app stores starting from June 20th.

Despite its successful launch on May 21st this year, with a consistent top ranking on the iOS bestseller list for 29 days, the future of DNF on Android devices seems uncertain. Industry experts have predicted that the game’s first-month revenue could surpass 3 billion yuan.

Tencent reassured players that those who have already downloaded the game through the Android channel can still access it via the official game website without any impact on their accounts, progress, or virtual items. The gameplay experience will remain unaffected on the official server.

Shifting Alliances in Mobile Gaming

Notably, major Android app stores like Huawei, OPPO, Vivo, and Xiaomi have decided to cease cooperation with Tencent, marking a significant shift in the industry. These companies, known for their massive user base, are part of the ‘Hardcore Alliance,’ which was established to regulate revenue sharing between mobile phone manufacturers and game developers.

However, recent developments suggest a weakening of the alliance’s stronghold, as more game companies opt to bypass traditional distribution channels and launch products independently. This shift towards ‘product dominance’ over ‘channel dominance’ signifies a new era where content developers reclaim control over their creations.

While the conflict between Tencent Games and app stores may seem like a routine negotiation issue, it reflects a larger trend within the gaming industry. Game companies are challenging the established commission structures of distribution platforms, spurred by the rise of super platforms like Douyin and WeChat that are reshaping the market landscape.

SEE ALSO: Tencent Games Unveils Over 40 Products and Projects at SPARK 2022

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