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Tencent pulls plug on Twitch-like platform Penguin Esports as regulators freeze out the social media giant from new gaming licences

  • The six-year-old Penguin Esports game streaming site ended operations on June 7
  • Tencent was left out of the new batch of 60 online gaming licences issued by the regulator on Tuesday

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Tencent closed its Penguin Esports video game streaming platform on June 7, succumbing to heightened regulatory pressure and competition. Photo: Weibo
Iris Deng
Tencent Holdings, which operates the biggest social media and gaming business in China, pulled the plug on its game streaming site Penguin Esports this week, another setback after antitrust regulators blocked the company’s plan to merge game streaming websites Douyu and Huya.
The move comes at a time when the Chinese government is trying to reduce youths’ indulgence in gaming, which is seen as a distraction to their growth. While the Chinese government has resumed issuing game licences, Tencent and NetEase, the two biggest players, have been left out in the two licence batches in April and June.

A notice on the six-year-old Penguin Esports’ website said that the company turned off the server and stopped operations of the site at 11:59pm on June 7, with contact information for users to reach out to customer services in case of inquiries. The service was also removed from app stores, including the mini-program that runs within Tencent’s super app WeChat.

The closure of the Twitch-like platform was announced by Tencent in April, when the company cited “changes in business development strategies” and suspended registration of new users and live-streaming hosts the same month.

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China limits online gaming time for young people to 3 hours a week

China limits online gaming time for young people to 3 hours a week

Some streamers and users took to social media to bid farewell to the platform. “Goodbye Penguin, and thank you for taking care of me over the past few years and giving me room to survive,” streamer Hasaki said on microblogging site Weibo, as she posted pictures of trophies awarded by Penguin Esports.

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