Chinese authorities are facing backlash from major tech companies after proposing new online gaming rules. These restrictions have led to significant financial losses, resulting in billions of dollars being wiped off the market value of companies such as Tencent Holdings and Netease.
The draft rules aim to curb online spending and rewards in video games. Specific restrictions include the banning of rewards for daily logins, first-time spending, and consecutive spending in games. However, regulators are now considering changing the wording of certain sections that limit the ability to encourage daily logins and wallet top-ups.
China has been increasingly strict on the gaming industry in recent years. They have implemented playtime limits for under-18s and suspended new game approvals. As a result of these government crackdowns, the Chinese gaming industry experienced a decline in revenue in 2021 and 2022.
The newly proposed rules also prohibit probability-based draws for minors and the auction of virtual gaming items. Beijing is concerned about user data and requires game publishers to store servers within China.
The impact of these regulations extends beyond Chinese borders. The global video games market could be affected in the long run due to the size and influence of Chinese gaming giants. US and European video game developers also saw minor losses in shares following the announcement.
To gather public opinion on the proposed rules, the administration is seeking public comment until January 22nd. This gives individuals and industry stakeholders an opportunity to voice their concerns and suggestions regarding the potential revisions of the online gaming guidelines.
It remains to be seen what changes will be made to the draft rules, but it is clear that Chinese authorities are facing pressure to reassess their approach to regulating the gaming industry. The financial backlash and potential impact on the global video games market could influence their decision-making process.
“Infuriatingly humble tv expert. Friendly student. Travel fanatic. Bacon fan. Unable to type with boxing gloves on.”