Penka Hristovska
Published on: December 27, 2023
Chinese authorities will likely revisit the tightening game rules they proposed to curb spending on video games after the news of the proposed restrictions caused major tech companies to lose billions of dollars.
The media regulations in China “will study them carefully and further revise and improve them,” reported state broadcaster CCTV on Saturday following “concerns and opinions raised by all parties.”
The report comes days after Chinese authorities released a draft, outlining a long list of proposed rules and regulations aimed at reducing online spending and rewards in video games.
Per the new rules, online games would be prohibited from rewarding players for logging in every day, initial in-game purchases, or several consecutive purchases. Authorities also suggested putting caps on the amount a player can spend in a game, banning player-duels and content that violates national security, forbidding games from offering probability-based features to monitors, and stopping the auctions of virtual gaming items.
The announcement of the sweeping restrictions had an immediate impact on the marketplace — investors went into a frenzy that resulted in a whopping loss of up to $80 billion in market value in just 1 day.
The biggest gaming industry giant in China, Tencent, experienced a 16% drop in shares marking its largest 1-day decline since 2008. NetEase, a smaller competitor of Tencent, plunged 28%, while Bilibili Inc., a video-sharing platform that’s hugely popular among games, saw a 14% decrease.
“The government gaming curb measures will hurt gaming companies’ earnings. But the more important concern is people are worrying that more measures targeting the sector will come, just like what Beijing did to the education sector in the past,” explained Yang Junxuan, a fund manager at Shanghai Junniu Private Fund Management Co.
According to CCTV, now regulations might have to change the wording of the section of the draft rules that limit wallet top-ups and ban games from encouraging daily logins.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.safetydetectives.com/news/china-to-rethink-new-gaming-rules-after-tech-giants-lose-billions/
