Qualcomm and Tencent are cooperating on projects to optimize user experience for the Chinese company’s video games on devices powered by the US firm’s chips, as well as on creating a 5G version of a Tencent-backed gaming phone, they said on Monday.

Why it matters: Tencent, one of the world’s largest gaming companies, is seeking new areas for growth as gaming revenues flag amid increased scrutiny by Chinese authorities.

The country’s publication watchdog, the State Administration of Press, Publication, Radio, Film and Television, suspended video game licensing in March 2018 until the end of the year, dramatically impacting Tencent’s game business.

Tencent’s revenue from gaming fell 4% year on year in the third quarter of 2018 while fourth quarter revenues were flat compared with the same period a year earlier.

Details: Under the agreement, future Tencent games will be optimized for Android phones that run Qualcomm’s Snapdragon Elite gaming chips, the companies said.