What that means for the Steam version, I have no idea. Maybe that means it gets pulled off Steam in China? dunno.
That's very likely what will happen. If Tencent is moving towards pushing their platform over Steam, any deal will want to be struck only for their platform. Going back to the article from VentureBeat that you posted, Tencent did exactly that with Rocket League so there's certainly precedent. In the event that it's pulled from Steam, it would be done by PUBG Corp resulting in a lot of ill will the same way it happened for Rocket League. As it is now, Steam is considered a grey market for games sold in China, so if the Chinese government decides to crack down on the sale of those games they would start by banning Steam or convincing Valve to curate a China specific marketplace. Given Valves reticence towards curating the marketplace with anything other than automated processes, I don't see it likely Valve will be willing to do this unless they stand to benefit in a way that matters to Valve. What matters to Valve gets more and more nebulous as the years go on.
While the number of Steam accounts for Chinese users has increased, if you go to the article I linked in my first post it explains a bit about how the market works for games over there. Even if the number of computers connected to the internet increases either at net cafes or by the purchase of a computer for the home, if the hardware power for the average user isn't high enough to meet the minimum reqs for most AAA games then it's not likely they would sell well enough in China as AAA is still currently focused on pushing graphical limits of hardware. Tencent is mainly focusing on indie games, per the article you posted, so any developers likely to see a benefit from pursuing that market is probably going to come from smaller developers where the focus isn't on pushing the hardware to the limit. PUBG is the current outlier from this in that it's current specs are higher than many indie games so this trend may be shifting towards higher end hardware being the norm.
On the flip side it could be as @ares42 said and the popularity of certain games only available on steam is driven by using it's marketplace to sell items farmed through play or by selling cheats, so those playing the game are doing so to bank on the many ways to make money around the game. For people who buy the game this way investing in the hardware to play the game is probably made back fast enough to offset the cost. If this ends up being more the case, and AAA developers start targeting the Chinese market, then I'd expect most of those games to include item marketplaces which means loot boxes.
It would be interesting to see the Steam hardware survey breakdown per country or region to see if this is the case. It was brought up in the thread Rorie made about the hardware survey that the drastic increase in Windows 7 for OS is due to most internet cafes in China use Windows 7 now so if everything is driven by changes at internet cafes over personal computer ownership then that will also have a significant impact on what games can or will do well in China and why they are played.
I found the article about the importance of localizing a game to its success in China. It's a lot longer than I remember and covers many more topics so you might find it interesting.
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