The Indian government blocked 118 mobile apps, reducing the Chinese revenues in the cybersport and mobile apps market. According to the latest esports news, Tencent, as the owner of Mobile PUBG, will lose about $300 million in revenues annually only from the one-game ban.
The iGaming giant Tencent, which holds about half of the total Chinese gaming market, will meet a serious cut of the income. As the Indian government blocked 118 mobile apps and games, which are based in the People's Republic of China, its gaming firms will see a massive revenue reduction.
Mobile PUBG seems to be the brightest example of how the situation will change. In 2019, the mobile version of PUBG brought about $1.5 billion in income for Tencent. India was a top-country in terms of a number of downloads, having more than 20% share. Even though Chinese players brought slightly more revenues for Tencent, such a significant cut in the number of players can cause about $300 million losses.
Those calculations don't include the pace of Mobile PUBG popularity increase. Tencent reported almost 120 million game downloads in 2019 and showed nearly 200 million at the end of summer 2020. There are still four months to the end of the year, and numbers should rise. One can assume that if India didn't ban Mobile PUBG, at the end of 2020, the game could bring an additional $500 million for Tencent.
Why were Chinese mobile apps blocked in India?
The most evident reason is the border conflict between China and India, which found its continuation in the digital sphere. The first tensions were in May 2020, while now receiving new attention. Indian government stated that mobile applications could steal personal information, so China-based ones were posing a threat to the country's sovereignty.
Possible information leakages in the mobile sphere is another hot topic for discussions. Thus, experts assume that China can also ban Indian applications now and influence the overall market. According to the statistics of 2019, China was competing for the world's leadership in gaming revenues with the USA. The last can now focus on the huge Indian market and increase the gap by replacing Chinese-based mobile games and apps. Among the most popular but banned applications in India are PUBG, TikTok, WeChat, and 115 others.
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