Waning Chinese interest had much to do with Activision (NASDAQ:ATVI) net loss of 1.3M World of Warcraft subs in Q1. Like some U.S. peers, many Chinese gamers have begun to eschew advanced MMORPG titles such as WoW in favor of casual and mobile games. That trend works against Activision and local partner NetEase (NTES - previous), and to the benefit of gaming/messaging giant Tencent (OTCPK:TCEHY). T.H. Capital thinks Activision may have seen an uptick in Chinese WoW users in Q2, but sees engagement continuing to fall. NetEase has been decommissioning unused game servers, and says it plans to launch more "competition type of games." Update: SA commenter Skylander2011 points out the spread of gold farming is alienating Chinese WoW users.