'Sackboy: A Big Adventure And Demon's Souls' Will Get Digital Deluxe Editions (Image: Tencent)
China’s gaming industry has lagged behind Western powerhouses due to strict regulation rules in efforts to curtail concerns regarding gaming addiction. Now, China’s Nation Press and Publication Administration has approved the monetization of 45 games from Chinese developers, becoming the first action they’ve taken since July 2o21.
The move spiked shares for companies such as NetEase, Huya and Bilibili.
Last year, China implemented strict rules over children and adolescents under 18 years old, limiting the time they can play video games to three hours per week. The move hurt Chinese gaming companies and caused investors to be wary in putting money into Chinese tech stocks. When China’s National Press and Publication Administration unveiled the new regulations last August, they cited mental and physical well-being as being the reason for the rules. To ensure rules were followed, companies only provide their services to minors between 8 p.m. and 9 p.m. on weekends and holidays.
Tencent, the world’s second-largest video game developer, said that they didn’t lose a substantial amount due to the regulations restricting those under 18 from playing games, but that the freeze on approving games impacted them exponentially as they reported their lowest quarterly revenue growth at the end of 2021.
The freeze on passing gaming titles was mainly due to rigorous content restrictions. The content restrictions have increased competition between Chinese video game makers.
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