Tencent Games cancels production of unannounced Nier game

The latest news in the mobile gaming industry comes from Tencent Games HQ as reports suggest that they have cancelled an unannounced Nier mobile game, which had been in development for nearly two years. The community is immensely disappointed since the developer was close to releasing a working demo, as per the last available reports.

Many believe the move has come as a result of Square Enix’s decision to discontinue a popular gacha title from the same franchise from April 29, 2024. This article aims to explore about the big break.

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Tencent Games to immediately stop development of unannounced Nier game

Tencent Games will shut down an unannounced title that was under development for years (Image via Tencent Games)

As per Reuters' report, Tencent halted the development of this unannounced franchise title in December 2023. Many in the community consider this to be a huge setback in the Chinese gaming giant’s history.

As per the report, the gaming giant went ahead after a struggle to find an impactful monetization model, considering its expensive cost of development and franchise rights.

Square Enix also collaborated with Tencent Games when they developed the popular “Final Fantasy” franchise together. However, both companies have declined to comment on the news so far.

The recent cancellation has made some cracks in Tencent’s decade-long strategy of making popular games’ mobile versions. With the growth in the mobile gaming industry slowing down and development costs rising, the royalty fees for popular IPs are reducing the profit margins in this particular strategy.

As per a Reuters report, 15 to 20% of sales are typical of royalty fees. However, recent negotiations showed Tencent was willing to pay the IP holders a sum of under 10%.

Tencent Chairman announced the recent hit Tencent Games took in the market (Image via LinkedIn)

Tencent’s gaming business accounts for more than 30% of revenue. It has taken took a hit due to some recent games failing to meet expectations, as per Chairman Pony Ma’s statement on Monday.

However, the cancellation of the unannounced title has not led to any job losses since employees will get transferred to other units, as per reports.

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Square Enix also announced their decision to shut Nier Reincarnation soon

While Tencent cancelled the development of the unannounced title, Square Enix has also decided to shut down Nier Reincarnation, the most overlooked title of the franchise recently. A developer blog post from January 30, 2024, announced that Nier Reincarnation will receive the final story update on March 28, 2024, and will be discontinued post April 29, 2024.