Tencent Holding Ltd’s (OTC:TCEHY) CEO, Pony Ma, acknowledges the gaming industry’s significant challenges while highlighting progress in AI development.
At Tencent’s annual meeting in Shenzhen, Ma admitted that the company had become complacent in its gaming sector, allowing competitors to release new, successful games.
The company, along with peers like Alibaba Group Holding Limited (NYSE:BABA), noted a significant reduction in their external investments as the economy battled a slowdown, regulatory challenges, and geopolitical tensions.
Video games form over 30% of Tencent’s revenue, making this a critical area, Reuters reports. Last week, the Chinese gaming regulator removed proposed rules curbing video game spending from its website, giving the industry quite a respite.
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