China Introduces New Measures to Regulate Online Gaming Industry\n\nChina has announced a series of new measures aimed at controlling spending and content in the online gaming industry. These regulations, which were released by Beijing’s top gaming regulator, have caused a significant drop in the market value of Tencent Holdings Ltd., one of the world’s largest gaming companies. The new rules include a ban on rewards for frequent log-ins, forced player-duels, and a vague prohibition on any content that may be deemed to violate state secrets.\n\nThe strict restrictions, which have taken many industry players and investors by surprise, suggest that Beijing is preparing to launch another crackdown on the world’s largest mobile gaming market. This move follows previous efforts by the Chinese government to combat gaming addiction, which has been blamed for various societal issues such as myopia among youths, unemployment, and low birth rates.\n\nThe latest regulations come after a brief period of thawing in the sector, with officials encouraging esports as a means to boost the post-Covid economy. In 2022, Tencent received approval for several major game releases, signaling a potential easing of the government’s two-year crackdown on Big Tech. The new rules have once again raised concerns among gaming companies, with many now facing the need to overhaul their monetization models.\n\nThe Chinese gaming market was expected to grow by 14% in 2023, reversing a 10% decline from the previous year. The new regulations may have a significant impact on this growth, as the government plans to set a cap on how much money each player can spend within a game. This move is in line with the Communist Party’s efforts to rein in the power and expansion of the private sector, which has already affected other tech giants such as Alibaba and Ant Group.
“China Introduces New Measures to Regulate Online Gaming Industry\n\nChina has announced a series of new measures aimed at controlling spending and content in the online gaming industry. These regulations, which were released by Beijing’s top gaming regulator, have caused a significant drop in the market value of Tencent Holdings Ltd., one of the world’s largest gaming companies. The new rules include a ban on rewards for frequent log-ins, forced player-duels, and a vague prohibition on any content that may be deemed to violate state secrets.\n\nThe strict restrictions, which have taken many industry players and investors by surprise, suggest that Beijing is preparing to launch another crackdown on the world’s largest mobile gaming market. This move follows previous efforts by the Chinese government to combat gaming addiction, which has been blamed for various societal issues such as myopia among youths, unemployment, and low birth rates.\n\nThe latest regulations come after a brief period of thawing in the sector, with officials encouraging esports as a means to boost the post-Covid economy. In 2022, Tencent received approval for several major game releases, signaling a potential easing of the government’s two-year crackdown on Big Tech. The new rules have once again raised concerns among gaming companies, with many now facing the need to overhaul their monetization models.\n\nThe Chinese gaming market was expected to grow by 14% in 2023, reversing a 10% decline from the previous year. The new regulations may have a significant impact on this growth, as the government plans to set a cap on how much money each player can spend within a game. This move is in line with the Communist Party’s efforts to rein in the power and expansion of the private sector, which has already affected other tech giants such as Alibaba and Ant Group.”$NTES2023-12-22T17:15:58.822Z
