After the Indian government pulled the plug on PUBG and 117 other Chinese apps, Tencent’s shares fell more than 2% or lost $14 Billion in intra-day trade. This is the second biggest fall in market value for the company in recent times.
This ban has become a big blow for the gaming giant as India had 175 million out of PUBG’s lifetime 734 million downloads till June. PUBG was the most downloaded gaming app in the world in the first half of the ongoing calendar year 2020. China, Turkey, Russia and Egypt were the remainder in the top 5 list. PUBG’s mobile version was developed by Tencent which holds around 10% stake in the parent company.
The ban follows rising tension between China and India. Rising geopolitical tensions between the two countries, since border clashes between the two armies in Ladakh’s Galwan Valley last in June, are now manifesting in trade and economic ties, with members of the Indian political brass calling for a boycott of Chinese products and services.