Tencent incurs nearly $34 billion loss after PUBG Mobile ban in India
By Vivek Raj | Galatta | Sep 05, 2020, 06:40 pm
Gamers across India might be dwelling in the dark after the recent ban on the popular mobile game, PUBG Mobile, but not as much as its developer, Tencent, who as per a report now have incurred a loss of $34 billion in terms of market value, two days after it was banned along with 117 other Chinese apps by the Indian government. Apart from PUBG Mobile, Tencent is also associated with games like Arena of Valor, Chess Run and Ludo Run, which as well have been served ban orders and are said to be the cause for the sudden drop of the company in the market.
PUBG Mobile has been the tent-pole for Tencent's revenue being generated in India compared to all the other games it offers, and was taking more than 30 million daily active users. Compared to the rest of the world, India is also the leading country when it comes to the total number of active users, and thus making it Tencent's most important market. Tencent's stocks have been plummeting going from HK $545 to HK $519 after the ban, with the company's WeChat app as well getting banned by the US government last month on the grounds of being a threat to national security. This is Tencent's second biggest dip in valuation after the company suffered losses of $66 million last month, as reported by Bloomberg, after the ban on WeChat was ordered by US President Donald Trump.
PUBG Mobile took India by storm after its launch in 2018, with people rushing into Google Play Store and Apple App Store to download the game. Its success was so huge that it had a massive impact on social culture, with PUBG-themed restaurants being opened to the game's signature level-three helmet getting sold at thrift shops across the country.
Subsequently, Tencent launched PUBG Lite in India to tap into a wider user base as the purpose behind the toned-down version of the original game was to lure more gamers online, who may not be owning high-end smartphones. Users living in low network areas would also be at an advantage with the 'lite' version as it allowed gamers to overcome any connectivity issues.