Tencent Is Said to Slash Game Marketing Budget

Tencent is cutting its marketing budget for games due to the Chinese government's crackdown on new game releases. This move indicates Tencent's concern over its bottom line as existing games fail to cover revenue losses from new games. The company is preparing for a prolonged period of reduced activity. Tencent is also focusing on non-gaming sectors to offset the weakness in its gaming division. Upcoming earnings reports will likely highlight these strategic adjustments. Nexon's earnings, with China as its biggest market, may provide insights into Tencent's future performance.

Why is Tencent reducing its marketing budget for all its games?

• To increase profits from existing games

• Due to a government crackdown on new game releases

• Because of a decrease in WeChat users

• To focus more on international markets

What is Tencent's main concern regarding its existing games?

• They are being banned in several countries

• They are losing popularity among players

• They are facing technical issues

• They are not generating enough revenue to cover losses from new games

What is Tencent's strategy in response to the prolonged freeze on game licenses?

• Increasing investment in new game development

• Cutting costs and preparing for a prolonged down period

• Expanding into the European market

• Launching a new gaming console

How is Tencent planning to offset the weaknesses in its gaming sector?

• By focusing on non-gaming sectors

• By increasing advertising on WeChat

• By launching a new social media platform

• By acquiring smaller gaming companies

What is the significance of Nexon's earnings report in relation to Tencent?

• It provides a preview of Tencent's potential performance

• It reveals Nexon's partnership with Tencent

• It shows Nexon's dominance over Tencent

• It highlights Nexon's new game releases