Tencent Holdings Ltd. said late Wednesday that it will shut down a service that helps China-based gamers to access overseas platforms to play videogames that aren't approved in the country.

The Shenzhen-based videogame giant said its internet-speed booster service for videogames, first launched in 2018, will only support games that are licensed in China from the end of May, according to a statement on its website.

This comes as China has heightened regulatory scrutiny over the videogame industry. Tencent said the service halt is due to adjustments of its operational strategy.

Videogame players in China usually have to use such tools, offered by Tencent and peers such as NetEase Inc. and Sichuan Xunyou Network Technology Co., to access unlicensed videogames on overseas servers without significant delays in internet speeds.

Since September, Tencent and NetEase have been closing channels allowing users to top up money in their accounts to use such services.

China resumed licensing for new videogames this month, ending a monthslong freeze of title approvals after it introduced tighter restrictions for younger players last August.

The gaming business had been the biggest contributor to Tencent's revenue for years, though it was overtaken in the fourth quarter of 2021 as growth in its domestic gaming operations slowed.


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(END) Dow Jones Newswires

04-14-22 0414ET