Let's go talk about Tencent, the Chinese giant specialized in financial investments and which in recent years has begun to show a particular interest in videogame market. In recent days, however, the company has seen a collapse in the stock market, leading to a drop in the value of their shares by ben 60 billion dollars. The cause of this setback? Honor of Kings.
Honor of Kings is a title of the MOBA genre (therefore along the lines of League of Legends and Dota) developed by the subsidiary Timi Studio Group (Pokémon Unite) and released in 2015. The title has seen an increase in its popularity not only nationally, but also globally, arriving in November 2020 with a playerbase of 100 thousand active players every day and various export competitions.
So how is it possible that such a popular and profitable stock could lead to such a serious financial collapse? We should ask the newspaper Economic Information Daily, a newspaper based in Beijing and financed by CCP (Chinese Communist Party) and that in recent days has published a rather negative review on the title, defining it as spiritual opium and possible cause of the destruction of a generation of young, connecting to the microtransactions of the game, which would be carried out mainly by players under the age of 18. (Source: Reuters)
Immediately after the publication of the article, the main title of Tencent would have lost 10% of its value, coming to influence the price of the various Western titles linked to the company: Activision (-3,8%), Electronic Arts (-2,8 , 5%), Ubisoft (-3,7%), Embracer Group (-6,9%), Prosus (-7,6%) and Take-Two (-XNUMX%).
In addition, Tencent itself has announced that it will begin to take action for limit payment options and daily play time for young players.