Apple, Tencent in talks to monetize mini-games via in-app purchases on iOS

Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) admitted that it is in talks with Apple (NASDAQ:AAPL) about sharing the revenue that goes through its WeChat mini-games.

The Chinese tech giant is exploring ways to offer in-app transactions through Apple’s iOS payment system, said Tencent’s Chief Strategy Officer James Mitchell on the company’s earnings call.

Such a move would potentially enable Apple to start taking a cut in in-game transactions.

Mitchell said Tencent currently does not monetize mini-games through in-app purchases on iOS and discussions are underway to potentially enable the function, which would benefit developers, users and the two companies.

“We want to make it available on terms that we think are economically sustainable, that are also fair. And so that’s a discussion that’s underway, and we hope that the discussion leads to a positive outcome,” Mitchell said. “But in the event the discussion doesn’t progress, then the current status quo continues.”

Earlier in the day, Tencent reported second quarter results wherein revenue rose 8% year-over-year, driven by recovery in its gaming business following the release of a new hit game Dungeon & Fighter Mobile, or DnF Mobile, in May.

The company’s total gross receipts of Mini Games increased over 30% year-on-year in the second quarter of 2024.

Apple has started increasing pressure on Tencent and TikTok’s-owner ByteDance to make changes to China’s most popular apps, the news agency had reported previously. In recent months, Apple demanded the two companies close loopholes that their in-app creators use to lead users to external payment systems, circumventing Apple’ usual 30% commission, Bloomberg News had reported earlier this month, citing people with knowledge of the matter.