Chinese gaming giant Tencent is slashing its marketing budget for videogames due to a government-led crackdown on the industry, Bloomberg reported, citing an internal memo.
Tencent said marketing executives would need to cut their spending, especially for games that still haven’t been approved by regulators. Chinese authorities haven’t issued licenses for new games since March due to a reorganization of the regulators in charge of approvals. Chinese authorities also have issued new directives this year to further limit gaming for minors.
Tencent’s move shows it’s feeling the pinch from the game freeze, which has lasted longer than anticipated. It also indicates the company is having a rethink of its business priorities.