fbpx
  • Topics
    • AI & Big Data
    • AR & VR
    • Blockchain
    • Clean Technology
    • Content & Games
    • Cybersecurity
    • Enterprise & SaaS
    • Gadgets & Electronics
    • Health & Bio
    • FinTech
    • IoT
    • Transportation & Logistics
    • Marketplaces & E-commerce
    • Ecosystem
    • Robotics
    • Investments
    • EdTech
    • Featured
  • Deals
    • Private Equity
    • Venture Capital
    • IPO & Markets
  • Interviews
    • Investors’ interviews
    • Founders’ interviews
    • Product Launch
  • MORE
    • Events
    • Startups Advice
  • Submit an Article
  • REGISTER
  • login
No Result
View All Result
No Result
View All Result
Home Featured

A blow to the gaming industry as China tightens its guidelines on online gaming

AsiaTechDaily Writer by AsiaTechDaily Writer
03 September 2021
in Featured, Regulations
0
China tightens its guidelines on online gaming
50
SHARES
Share on FacebookShare on Twitter
Bookmark (0)

Please login to bookmark

No account yet? Register

China recently introduced new regulations on online gaming that limits the number of time under-18s can spend on online video games to 3 hours a week. The authorities say that this move was necessary to combat online gaming addiction.

What are the new guidelines?

According to the announcement from the Chinese National Press and Publications, children under 18 years of age would be allowed one hour of online gaming from 8pm-9pm on Friday, Saturday, Sunday, and public holidays. This restriction will further reduce the already limited time kids in China have to play video games.

The guideline orders all online gaming providers in the region to not provide online services to minors during the weekdays, even on a guest account. Those who refuse to comply with these new orders will be dealt with in an official capacity.

This announcement has come after China in 2019 had enforced restrictions on online gaming that banned minors from logging on to online games post 10 pm. These new guidelines have not gone down well with many video game companies. Online gaming giants such as NetEase and Tencent have been constantly looking out for opportunities and partnerships to develop products as per the global demand.

Source – Niko Partners

Why China is worried about gaming addiction?

China being the largest video games market have been concerned for years about the addiction to online gaming and the internet among the youth, setting up clinics that offer a combination of military drills and therapy for those with “gaming disorders”.

In 2018, an increasing rate of nearsightedness was also cited as a concern. The new regulations are in response to rising concern that online games affected the mental and physical health of children.

According to the state media report, around 62.5% of Chinese minors play online games, and about 13.2% of minors play mobile games for more than 2 hours per day on weekdays.

Source – Ecommerce China Agency

Why a crackdown on the online gaming industry?

Authorities in China believe that multinational companies are addicting the youth of the country to video games. This has been a major reason for health issues among teenagers and it also compromises their productivity. As a result, the regulatory bodies have been asked to clean up the gaming industry in China.

As part of this cleanup, since the beginning of 2018, Chinese regulatory authorities have not been issuing new licenses for video games. Even free video games require a license to operate in China, thus prohibiting any new launches.

The impact

This crackdown may create many casualties and the first one to get impacted will be the publishers. Some of the largest video game publishers are in China. For instance, Tencent, the number one publisher in the world for video games witnessed a fall in its share early this month.

According to Jefferies analysts, it is expected that there would be an impact of about 3% on Tencent’s earnings from the new guidelines, assuming that gaming contributes 60% of its total revenue.

NetEase saw a downward trend in its share price with this announcement. A South Korean company, Krafton Inc. that earns fees by providing a similar game to its famous PUBG to Tencent in China, also witnessed a fall in stock price. Koei Tecmo and Nexon, both have the exposure to Chinese market met a similar fate in the stock market.

This rapid crackdown can have widespread consequences for gaming companies in China as well as abroad.

Tags: Chinagaming industryvideo games
Previous Post

BuyMed, a Vietnamese online pharmaceutical marketplace raises US $8.8 million in a new funding round

Next Post

India’s leading Ecommerce platform Snapdeal eyeing to raise $400 million from IPO

Related Posts

edit post
Sleek CEO, Eric Kim at the East meets West Pitch competition
AI & Big Data

Sleek’s ‘Hifive’ Fitness Platform Triumphs at 2023 East Meets West Pitch Competition in Hawaii

June 2, 2023
edit post
WeGoWhere
Featured

500 Global leads $1.2m Seed funding in social networking startup WeGoWhere

June 1, 2023
edit post
Hybr1d
Featured

SG startup Hybr1d raises $3.2m, eyes global workforce management expansion

June 1, 2023
edit post
TRIREC
Clean Technology

TRIREC, INNOPOWER team up for $100m green energy fund

May 30, 2023
edit post
Philippine Startup Venture Fund
Accelerator

Philippine Startup Venture Fund now has $143m to boost ecosystem

May 29, 2023
edit post
Stride
Clean Technology

Cleantech startup Stride raises $2m to support Vietnam’s clean energy transition

May 24, 2023
Next Post
edit post
Snapdeal

India's leading Ecommerce platform Snapdeal eyeing to raise $400 million from IPO

Discussion about this post

No Result
View All Result

Follow Us

FREE NEWSLETTER




Copyright © 2023 AsiaTechDaily.com| About Us | Seed accelerator| Terms of Use| Privacy Policy| Cookie Policy Contact : [email protected] | DMCA.com Protection Status | trusted by Wimgo

No Result
View All Result
  • Topics
    • AI & Big Data
    • AR & VR
    • Blockchain
    • Clean Technology
    • Content & Games
    • Cybersecurity
    • Enterprise & SaaS
    • Gadgets & Electronics
    • Health & Bio
    • FinTech
    • IoT
    • Transportation & Logistics
    • Ecosystem
    • Marketplaces & E-commerce
    • Robotics
    • Investments
    • Featured
  • Deals
    • Private Equity
    • Venture Capital
    • IPO & Markets
  • Interviews
    • Investors’ interviews
    • Founders’ interviews
    • Product Launch
  • MORE
    • Events
    • Startups Advice
  • Submit an Article
  • Forums
  • Jobs
  • REGISTER
  • Login

Copyright © 2023 AsiaTechDaily.com| About Us | Seed accelerator| Terms of Use| Privacy Policy| Cookie Policy Contact : [email protected] | DMCA.com Protection Status | trusted by Wimgo

We hope you enjoy our content, May you please give us Feedback regarding our website!

Single Post Feedback