Tencent Abandons Nier Mobile Game Development Amid Monetization Concerns

Tencent Abandons Nier Mobile Game Development Amid Monetization Concerns

Tencent has halted the development of a mobile game based on Square Enix's popular 'Nier' franchise, following two years of work. According to Reuters, difficulties in devising a viable monetization strategy and concerns over the high costs associated with the license contributed to the decision.

Insiders revealed that Tencent balked at the standard licensing fee range of 15% to 20%, preferring a lower rate of 10%.

Gaming is our flagship business... But in the past year, we have faced significant challenges.

We have found ourselves at a loss, as our competitors continue to produce new products, leaving us feeling having achieved nothing.

—— Ma Huateng (Pony Ma)

The cancellation emerges amidst Tencent's broader introspection on its gaming strategy, highlighted by chairman Pony Ma's acknowledgment of the company's recent challenges in the gaming sector. This move also follows Square Enix's decision to close down another Nier mobile game, Nier Re[in]carnation, by April 2024, which had earned 98.6 million USD since its 2021 launch. Meanwhile, Nier: Automata, the console and PC title, continues to enjoy success with over 7.5 million copies sold.

Source: Pocket Gamer.biz