miHoYo Partners With Tencent: Reduced Fees for Genshin Impact

Key insights

6 takeaways

01
miHoYo has partnered with Tencent to launch Genshin Impact on the MyApp Android store, securing a favorable 70/30 revenue split in its favor.
02
The 70/30 revenue split represents a significant deviation from the standard 50/50 commission model typically imposed by third-party Android stores in China.
03
Genshin Impact generated 660,000 downloads on Tencent’s MyApp store within the first few days of its release on September 21, 2021.
04
miHoYo previously established a similar 70/30 revenue agreement with Xiaomi in February 2021, demonstrating the studio's leverage in negotiating terms with major Chinese platforms.
05
The ability to dictate these terms highlights the massive market influence of Genshin Impact, which generated $55.7 million in China during the first week of September 2021 alone, excluding third-party Android store revenue.
06
miHoYo’s success in bypassing traditional distribution channels for a global hit has set a new precedent for independent Chinese studios operating without initial reliance on Tencent’s ecosystem.

Summary

The partnership between miHoYo and Tencent marks a significant shift in the distribution landscape of the Chinese mobile gaming market. By launching version 2.1 of Genshin Impact on Tencent’s MyApp store in September 2021, miHoYo secured a favorable revenue-sharing agreement that deviates from the industry-standard 50/50 split typically enforced by Chinese third-party Android stores. Under the reported terms, miHoYo retains 70% of the title's revenue, mirroring the more developer-friendly commission structures found on global platforms like the Apple App Store and Google Play.

This development highlights the growing leverage of independent studios with high-performing intellectual property. Historically, miHoYo bypassed major Chinese Android storefronts to avoid high commission fees, opting for direct distribution. However, the successful negotiation of a 70/30 split—a precedent previously established with Xiaomi—demonstrates that the massive commercial success of Genshin Impact has granted the developer significant bargaining power. Within its first few days on the MyApp store, the game achieved 660,000 downloads, further validating the strategic value of the partnership for both parties.

The move underscores a broader trend where top-tier developers are increasingly capable of challenging the traditional dominance of Chinese platform holders. By securing promotional support on the MyApp front page while maintaining a higher revenue share, miHoYo has reinforced its position as a major industry force capable of dictating terms in a market that has long been defined by restrictive platform policies. This shift reflects the evolving power dynamics between content creators and distribution gatekeepers in the world's largest mobile gaming market.