Tencent Holding Ltd. announced on Wed, April 13, that it will shut down a gamer-focused accelerator service app that allowed Chinese gamers to access unapproved foreign games on overseas platforms.
The Chinese gaming giant said that from May 31, 2022, it will update its current accelerator service on both mobile and desktop platforms to new versions that will no longer support overseas games but only games operating in China.
According to Reuters, Chinese regulators only allow gamers in China to play approved games, and domestic internet connection is too slow to access overseas platform’s games.
Therefore, Chinese gamers use such apps which act as an internet booster to have a better connection to foreign game servers.
Tencent’s new plan has upset Chinese gamers but many said it was not surprising.
The move comes days after China lifted a nine-month freeze on gaming licenses as a sign of the government continuing to tighten the industry. Gaming companies, including Tencent, made significant changes to their business practices during this time to abide by regulatory requirements.
The ongoing tech crackdown of Beijing has also made Tencent undergo some other major adjustments before.
CNN reported that last week, the game streaming platform Penguin Esports of Tencent announced shutting down all of its services on June 7.
In addition, in 2020, Tencent planned to make a merger deal that was valued at nearly 6 billion dollars at the time by combining Penguin Esports with two other leading game streaming platforms in China, Huya and Douyu.
But the deal was blocked by the Chinese government to prevent Tencent 腾讯 from gaining too much market power and becoming dominant in the video game streaming market.