china gaming rules: ETtech Explainer | China’s curbs on online games to impact digital gaming industry

These include a ban on rewards for frequent log-ins, forced player duels, and prohibition on any content deemed to violate state secrets.

Consequently, on Friday, Beijing’s largest game developer Tencent’s stock fell as much as 16% — its biggest intraday fall since 2008, wiping off $54 billion from company’s value — while smaller rival NetEase Inc. dived 28%, the Bloomberg reported.

Beijing has been quite stringent in implementing gaming curbs since 2021 including restricting game time for children to just three hours a week as well as verifying the age of players.

Suspended approvals

Approvals of new video games also were suspended for about eight months, resuming only in April 2022 as authorities eased a broader crackdown on the entire technology industry.

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In late 2021, the NPPA, which is in charge of licensing video games in the country, stopped approving new titles for months. However, this year, 873 approvals were issued for new domestic titles in the first 11 months, according to the South China Morning Post (SCMP).Draft regulations

The draft regulations require gaming companies to introduce caps on recharging in-game wallets and remove features which are meant to increase gameplay such as rewards for daily log-ins.

Pop-ups warning users of “irrational” playing behaviour would also have to be introduced. Players who stream their games shall not be allowed to receive large tips.

Games are also banned from offering probability-based lucky draw features to minors, and from enabling the speculation and auction of virtual gaming items.

The draft regulations also reiterate a ban on “forbidden online game content… that endangers national unity” and “endangers national security or harms national reputation and interests”.

On the other hand, the draft also requires regulators to process game approvals within 60 days, a proposal welcomed by the industry.

China’s gaming industry

China houses some of the largest gaming firms across the world, including Tencent, which has a majority stake in several big gaming firms like US’s Riot Games and South Korea’s Krafton.

China’s video game revenue increased 14% this year to 303 billion yuan (US$42.7 billion), marking the highest annual sales since the data became available in 2003, according to a report released by the Game Publishing Committee of the China Audio-Video and Digital Publishing Association, the SCMP reported.

These include a ban on rewards for frequent log-ins, forced player duels, and prohibition on any content deemed to violate state secrets.

Consequently, on Friday, Beijing’s largest game developer Tencent’s stock fell as much as 16% — its biggest intraday fall since 2008, wiping off $54 billion from company’s value — while smaller rival NetEase Inc. dived 28%, the Bloomberg reported.

Beijing has been quite stringent in implementing gaming curbs since 2021 including restricting game time for children to just three hours a week as well as verifying the age of players.

Suspended approvals

Approvals of new video games also were suspended for about eight months, resuming only in April 2022 as authorities eased a broader crackdown on the entire technology industry.

Discover the stories of your interest

In late 2021, the NPPA, which is in charge of licensing video games in the country, stopped approving new titles for months. However, this year, 873 approvals were issued for new domestic titles in the first 11 months, according to the South China Morning Post (SCMP).Draft regulations

The draft regulations require gaming companies to introduce caps on recharging in-game wallets and remove features which are meant to increase gameplay such as rewards for daily log-ins.

Pop-ups warning users of “irrational” playing behaviour would also have to be introduced. Players who stream their games shall not be allowed to receive large tips.

Games are also banned from offering probability-based lucky draw features to minors, and from enabling the speculation and auction of virtual gaming items.

The draft regulations also reiterate a ban on “forbidden online game content… that endangers national unity” and “endangers national security or harms national reputation and interests”.

On the other hand, the draft also requires regulators to process game approvals within 60 days, a proposal welcomed by the industry.

China’s gaming industry

China houses some of the largest gaming firms across the world, including Tencent, which has a majority stake in several big gaming firms like US’s Riot Games and South Korea’s Krafton.

China’s video game revenue increased 14% this year to 303 billion yuan (US$42.7 billion), marking the highest annual sales since the data became available in 2003, according to a report released by the Game Publishing Committee of the China Audio-Video and Digital Publishing Association, the SCMP reported.