In 2021, the Chinese Government imposed restrictions on the time and duration of online gaming for users under the age of 18. Now the Chinese administration has no age restrictions. restrictions on online games is getting ready to bring it. Looking at the draft rules, it is obvious that game developers and publishers in the country will be negatively affected by these bans. Here are the details of the restrictions included in the draft rules…
Chinese Government Will Place Limitations on Online Games Without Age Restrictions
NPPA, China’s agency responsible for licensing and regulating video games. National Press and Publications Administrationannounced its new draft rules for online gaming. With these rules, the Authority regulates online game content and shopping; In a way, it aims to limit both playing time and money spent.
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NPPA Within the scope of the draft rules in question, online game publishers are asked to impose limits on in-game purchases and reduce the time the user spends in the game. These restrictions aim to prevent publishers from restricting users’ irrational spending behavior. In addition, the institution Some games are also banned He declared that it was necessary. It is stated that the games that will be banned under the said rules have the characteristics of “endangering national security” and “damaging national reputation and interests”.
Tencent and NetEase Shares Decline Following NPPA’s Announcement
Following the draft rules announced by the National Press and Publication Administration of China, the share prices of China’s online game publishing companies experienced a significant decline in the stock market. In this context, listed on the Hong Kong stock exchange Tencent There was a negative movement of more than 12 percent in its shares. Also one of the major online game publishers in NetEase stock There was a loss of nearly 25 percent in value.
In fact, such restrictions are not new in China. In 2021, the time spent in online games by users under the age of 18 was restricted. In this context, users; on weekends, Fridays and public holidays They only had access to 1 hour of online gaming per day. Now, similar rules will begin to be implemented without age restrictions.
How Will Restrictions on Online Games Affect Publishers and Developers?
China is at the top of the global online gaming market with nearly 670 million users. The new restrictions mentioned above, especially online game developer It is thought that it will have a negative impact on the earnings of companies that are broadcasters.
According to the data announced by China’s Audiovisual and Digital Broadcasting Association in early December 2023, the revenue generated by the sale of online games in the country in 2023 $42.8 billion worth. When this figure in 2023 is compared to 2022, a 14 percent increase aforementioned.