The Indian government’s decision to ban the country’s most popular title, PUBG MOBILE was always going to have a ripple effect across the entire industry and the effects are already being felt.
Having lost out on what was their biggest market for the game, Tencent has reportedly lost nearly $42B USD in market value in just two days since the announcement.
his is the second-largest market capitalization loss for the Chinese conglomerate following a $66B loss spurred by an executive order against WeChat by the US
Tencent also lost $6B in market capitalization when India decided to ban Tik Tok on June 29.
India had already called for bans on Mobile Legends: Bang Bang and Clash of Kings when it banned 59 apps including Tik Tok on June 29. This was followed by reports of the Indian Army asking its staff to remove Chinese apps from their phones. On Sept. 2, the Indian government announced its decision to ban an additional 118 apps from Android and iOS devices. This included PUBG MOBILE and Arena of Valor among other games and apps.
China’s Commerce Ministry has already opposed the ban calling it a violation of legal interests of Chinese investors and service providers and asked India to correct its mistakes. In a statement to the Business Insider, Tencent said that the company :
“takes the protection of user privacy and data seriously. Our apps have always remained in compliance with data protection laws in India. We look forward to engaging with the Indian authorities to clarify our long-established policy and action in protecting user data and hope to ensure the continued availability of our apps in India.”
These bans has greatly devastated the India esport scene , The major esport sponsors and paticipant are unsure of how to move on.