Huawei Demands A 50% Cut On Tencent Mobile Game Sales, Removing All The Titles From Its App Store

Dhir Acharya - Jan 04, 2021


Huawei Demands A 50% Cut On Tencent Mobile Game Sales, Removing All The Titles From Its App Store

Due to a dispute in commission agreements, all of Tencent’s games on Huawei’s app store were removed then returned to the store on Friday.

Due to a dispute in commission agreements, all of Tencent’s games on Huawei’s app store were removed then returned to the store on Friday.

According to a source at Tencent, cited by Nikkei, the incident resulted from the fact that Huawei asked for 50% of Tencent’s sales of mobile games on its store. When the two companies could not reach an agreement on this deal, all Tencent’s games were deleted from the store.

huawei tencent
Huawei and Tencent disagreed on the commission split

Currently, Apple and many other app stores around the world are applying a 30% commission policy for selling games and in-game purchases but developers like Epic Games still think it’s too high and not reasonable. Therefore, it’s easy to understand why Tencent refused the 50% demand from Huawei.

Tencent is offering many world-leading online games while Huawei holds 41/4% of the mobile phone market in China and 14.9% of the global phone market, as revealed in data from Canalys and IDC.

tencent game
Tencent's games have returned to Huawei's app store

Tencent said that all of its games have been brought back to Huawei’s app store after multiple negotiations, adding that both companies will continue to work together to deliver better experience and services to consumers.

Not just Tencent, some Chinese game developers also objected to Huawei’s commission splits, including Mihoyo. This game developer decided not to bring its famous Genshin Impact title to Huawei’s store as it disagreed with how Huawei splits commissions.

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