Tencent 2022 Financial Report: Domestic Gaming Revenue Dips as Giant Faces Growth Hurdles

Tencent recently released its Q4 and full-year 2022 financial report. The data shows a 4% year-over-year decline in domestic gaming revenue, amounting to 123.9 billion RMB. The company cited the implementation of minor protection measures and a thinner pipeline of new game releases as the primary headwinds. While titles like 'League of Legends: Wild Rift', 'Teamfight Tactics', and the newer 'Arena Breakout' contributed to revenue, core pillars like 'Honor of Kings' and 'Peacekeeper Elite' saw declines. Meanwhile, the international market saw growth, fueled by titles like 'VALORANT' and 'Goddess of Victory: NIKKE'.

In response to the figures, the gaming community has been quick to criticize. Players questioned how 'Honor of Kings' could see revenue drops despite an aggressive influx of new skin releases, leading to accusations of greedy monetization tactics—often referred to in the community as 'poor table manners' (吃相难看). Some users expressed skepticism regarding the company's use of minor protection policies as a scapegoat, suggesting it masks broader market stagnation. As the industry faces a 'cold winter,' players are bracing themselves for increasingly unpredictable operational tactics from the giant.