Chinese authorities announced a proposal for strict regulations on Friday. This includes: to introduce a ban on daily rewards for logging in to games and to establish limits on account top-ups. It was also proposed to ban offering probability-based drawing functions to minors and conducting speculation and auctioning of items in the Internet.
China is hitting the gaming market again. The two largest giants lost almost $80 billion
The idea of a Chinese gaming regulatory authority caused an earthquake. The announcement of new regulations led to sharp declines in . Shares of , the world’s largest video game publisher, fell as much as 16 percent on Friday. Its rival NetEase, in turn, recorded a decline of 25%. The two largest giants on the video game market lost almost USD 80 billion in market value, reports Reuters.
Tencent Vice President Vigo Zhang said the company strictly complies with regulatory requirements but will not have to fundamentally change its “sound business model or operations” despite the new regulations. He also pointed out that minors have spent the least amount of money and time on Tencent’s games since 2021, when Beijing decided to “protect” children from excessive gaming.
China. Is the gaming market facing another crisis?
Over the years, Chinese authorities have had an increasingly strict approach to video games. Two years ago, Beijing set strict gaming time limits for under-18s (up to three hours a week) and suspended approval of new video games for about eight months, citing concerns about gaming addiction. The above regulations made 2022 the most difficult year in the history of the Chinese gaming industry, as companies recorded a decline in revenue for the first time.
Source: Gazeta
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