China approved 105 domestic games on Monday, December 25th.
The mentioned decision, as noted by the media, is a sign that Beijing has begun to soften its position on sphere video games after restrictions imposed by the authorities of the Asian country in this industry last week provoked losses of $80 billion.
For example, companies such as Tencent Holdings Ltd. and NetEase Inc. suffered from the new rules that caused the specified damage.
The industry association’s message on WeChat claims that the permits, which became known on Monday, are a signal that Beijing supports the development of the online gaming industry.
Fears have increased among Chinese officials about the start of another round of technological repression after the gaming regulator National Press and Publication Administration (NPPA) announced new rules late last week restricting the development of relevant digital products. In particular, an unspecified cap was set on the expenses of adult players. The new rules also provide for a ban on rewards for frequent log-in, the abolition of forced duels in the virtual gaming space, and the restriction of content that harms national security.
Against the background of the regulator’s decisions at the end of last week in Hong Kong, the market value of Tencent and NetEase decreased by tens of billions of dollars. During trading hours, the NPPA announced the approval of 40 imported gaming titles, but this measure did not help restore consumer confidence.
Several analysts, including from Citi, said that the new rules should not significantly affect Tencent and NetEase. However expert opinion did not save the company’s shares from a sharp loss of value in the United States.
The regulator’s decision, which became known on Monday, indicates a kind of tacit agreement by the authorities that the new rules are excessive and cause significant damage.
Yang Wenfeng, senior vice president of Shanghai-based Paper Games game studio, says that the latest events reflect the Chinese government’s desire for a broader and more diverse gaming landscape with innovative high-quality content. Separately, it was noted that the authorities want publishers to make a profit as a result of fair practices and product innovations, without using monetization strategies.
As we have reported earlier, UBank and Aeropay to Provide Financial Services for Gaming Industry.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
