Ma’s outburst in particular unnerved observers accustomed to his even-keeled handling of Asia’s biggest social media and gaming company. Along with the Sea decision — unveiled in a memo days before Christmas — they point to another down year for a games industry struggling to leave behind the geopolitical and economic ructions of 2022. The war in Ukraine, soaring inflation and resultant impact on consumer spending could usher in an even tougher 2023 environment, Li warned in his memo.
Tencent Holdings Ltd. and Sea Ltd. are signalling that the US$200 billion ($269.81 billion) gaming industry, which in 2022 endured one of its worst slumps on record, is in for an even rockier year.
Tencent co-founder Pony Ma attacked his staff in a town-hall meeting for lacking urgency in the face of an existential crisis. Days later, Sea founder Forrest Li warned of deeper economic challenges in 2023 before slashing bonuses and freezing salaries.
