- Tencent Holdings Ltd (OTC:TCEHY) looks to shut down a service that allowed Chinese gamers to access overseas platforms to play unapproved foreign games reflecting the growing regulatory crackdown, Reuters reports.
- The report noted Tencent aims to update its games speed booster mobile and desktop apps to new versions on May 31 to support only games operating in China. The latest versions will no longer allow users to access foreign games.
- Many gamers in China use such apps to access unapproved foreign games like Grand Theft Auto or Nintendo Co Ltd's smash-hit Animal Crossing.
- The apps became grey-area channels for foreign game developers to reach users in the world's largest gaming market.
- Gamers in China can only play government-approved titles. They cannot play with foreigners on foreign servers.
- The local internet speeds are generally too slow for foreign games.
- Recently, China lifted a nine-month freeze on gaming licenses.
- Price Action: TCEHY shares closed at $48.02 on Wednesday.
