Tencent's Dungeon & Fighter Mobile Faces Revenue Sharing Challenges

23 Jun 2024

Tencent is making headlines once again, this time with the removal of its new game Dungeon & Fighter Mobile from certain Android app stores due to expired contracts. The affected app stores have not been disclosed by Tencent, but reports suggest that Huawei, Oppo, and Vivo stores are among those impacted.

Revenue Sharing Challenges

Game developers in China are facing challenges with distributors over revenue sharing, particularly as mobile games gain popularity in the gaming market. Despite the initial success of DnF Mobile with over $100M in player spending within the first week of release in China, issues with app stores continue to arise.

Collaborations between developers and Android app stores often lead to disputes over revenue sharing, with Huawei Technologies previously removing Tencent’s mobile games from its store in 2021. However, recent reports indicate that Huawei may allow Tencent’s WeChat super app to operate fully on its HarmonyOS without revenue sharing.

New Revenue Models

As Huawei explores new revenue models, including potentially charging fees for in-app purchases on HarmonyOS, competition in the smartphone space is heating up. With discussions of lower commission fees than industry giants like Apple and Google, Huawei is positioning itself as a formidable player in the mobile market.

This development highlights the ongoing tug-of-war between game developers and app stores over revenue sharing. As mobile games continue to dominate the gaming landscape, the dynamics of these partnerships will be crucial in shaping the future of the industry.

  • Tencent: Continues to navigate challenges with app store contracts and revenue sharing.
  • Dungeon & Fighter Mobile: Achieved significant player spending but faces distribution hurdles.
  • Huawei: Exploring new revenue models and positioning itself against industry giants.

The evolving landscape of mobile game distribution and revenue sharing agreements will undoubtedly influence how developers and distributors collaborate moving forward. With major players like Tencent and Huawei at the forefront, the industry is poised for significant shifts and innovations.

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