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.

In what ways is Tencent expected to manage costs in the face of declining revenue from games?

What insights can be drawn from Nexon's earnings in relation to Tencent's performance in the gaming market?