Accordingly, online game publishing companies were asked to control “irrational spending behavior” by limiting users’ in-game purchases, diary entries and time spent in the game, without any age restrictions.
On the other hand, it was stated that game content that “endangers national security” and “damages national reputation and interests” will be banned.
LOSS OF VALUE IN TENCENT AND NETEASE SHARES AFTER THE ANNOUNCEMENT
Following the announcement of the draft rules, the shares of Tencent, one of China’s largest online game publishers, traded on the Hong Kong Stock Exchange, lost 12.4 percent in the last session of the week, and NetEase’s shares lost 24.6 percent.
According to data published by the China Audiovisual and Digital Publishing Association at the beginning of this month, the revenue from the sale of online games in China increased by 14 percent in 2023 compared to last year, reaching 303 billion yuan ($42.8 billion).
It is predicted that the restriction on in-game spending in the country, which is the world’s largest online gaming market with 668 million online users, will reduce the income of publishers and developer companies.
With the regulation made in 2021 in China, the online gaming time of those under the age of 18 was limited to 1 hour per day on Fridays, weekends and public holidays.
On the other hand, the Cyberspace Administration of China (CAC) this year announced the guidelines restricting access to mobile internet applications for those under the age of 18. (AA)