Surprising restriction decision on games from China

The National Press and Publication Administration (NPPA) has announced draft rules for the regulation of online game content and purchases.

Accordingly, online game publishing companies are required to control "irrational spending behaviors" by placing limits on in-game purchases, daily logins, and time spent in games, regardless of age.

On the other hand, it was stated that game content that "endangers national security" and "harms national reputation and interests" will be banned.

CHINA IS THE WORLD'S LARGEST ONLINE GAMING MARKET WITH 668 MILLION ONLINE USERS

Following the announcement of the draft rules, shares of Tencent, one of China's largest online game publishers, trading on the Hong Kong Stock Exchange fell by 12.4 percent in the final session of the week, while NetEase shares lost 24.6 percent of their value.

According to data released by the China Audio-video and Digital Publishing Association earlier this month, revenue from online game sales in China reached 303 billion yuan (42.8 billion dollars) in 2023, an increase of 14 percent compared to the previous year.

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 revenues of publishing and developer companies.

With a regulation introduced in China in 2021, the time spent playing online games by those under the age of 18 was limited to 1 hour per day on Fridays, weekends, and public holidays.

Meanwhile, the Cyberspace Administration of China (CAC) also announced guidelines this year restricting access to mobile internet applications for those under the age of 18.

News Source: AA