Tencent’s PC gaming business was down 9% in Q2

Tencent delivered 88.8 billion yuan ($12.7 billion) for the second quarter of the year, according to its most recent financial disclosure. But that revenue total came in under analyst expectations largely due to a shortcoming in the company’s advertising business. Tencent is beginning to feel pressure from competitor ByteDance even as Tencent’s ad revenue jumped 23% year-over-year.

But the most interesting blip on the Chinese megacorporation’s report is that its PC gaming revenue. That segment dropped 9 percent year-over-year to 11.7 billion yuan ($1.67 billion). The company is seemingly still feeling the effects of the Chinese government’s freeze on new-game approvals that lasted from March 2018 into the early months of 2019. That hurt Tencent’s ability to introduce and build up new games over time.