China introduces new restrictions on online games
The Chinese government is imposing restrictions on time and money spent on online games. According to the draft rules, online game publishing companies will be required to limit in-game purchases, daily logins, and time spent in games. These restrictions could negatively impact China's largest online game publishers.
China has announced new regulations aimed at controlling the time and money spent on online games. According to the draft rules released by the National Press and Publication Administration (NPPA), online game publishing companies will be subject to the obligation to limit users' in-game purchases, daily logins, and time spent in games. The goal of this step is to control "irrational spending behaviors."
The Chinese government will also retain the right to ban game content that "endangers national security" and "harms national reputation and interests." These new regulations could affect major companies in the online gaming sector, particularly key players such as Tencent and NetEase.
Online games in China constitute the world's largest online gaming market, with 668 million online users in the country. Revenue from online games was expected to reach 303 billion yuan (42.8 billion dollars) in 2023. However, it is anticipated that the new restrictions could cause revenue losses in the sector. These regulations come in addition to measures introduced in 2021 that limited the time those under 18 could spend playing online games.
News Source: AA
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