{"id":38133,"date":"2023-12-23T10:08:27","date_gmt":"2023-12-23T10:08:27","guid":{"rendered":"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2"},"modified":"2023-12-23T10:34:16","modified_gmt":"2023-12-23T10:34:16","slug":"china-announces-rules-to-reduce-spending-on-video-games-2","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2","title":{"rendered":"China announces rules to reduce spending on video games"},"content":{"rendered":"

Africa-Press – Mauritius. <\/strong><\/span>Chinese regulators announced on Friday a wide range of rules aimed at curbing spending and rewards that encourage video games, dealing a blow to the world\u2019s biggest games market, which returned to growth this year.<\/p>\n

The new rules, which will effectively set spending limits for online games, sparked panic among investors, wiping off nearly $80 billion in market value from China\u2019s two biggest gaming companies, as investors sought to gauge the potential impact on earnings and more restrictions in the offing.<\/p>\n

Online games will now be banned from giving players rewards if they log in every day, if they spend on the game for the first time or if they spend several times on the game consecutively.<\/p>\n

All are common incentive mechanisms in online games. Shares in Tencent Holdings (0700. HK), the world\u2019s biggest gaming company, tumbled as much as 16% at one point, while those of its closest rival, NetEase (9999.<\/p>\n

HK), plunged as much as 25% after the National Press and Publication Administrations published the new draft rules. Shares of tech investor Prosus (PRX.<\/p>\n

AS) followed Tencent lower, losing 14.2% in early trade on Friday and were among the biggest fallers on the pan-European stock index (. STOXX). Prosus owns a 26% stake in Tencent.<\/p>\n

\u201cIt\u2019s not necessarily the regulation itself \u2013 it\u2019s the policy risk that\u2019s too high,\u201d said Steven Leung, executive director of institutional sales at broker UOB Kay Hian in Hong Kong.<\/p>\n

\u201cPeople had thought this kind of risk should have been over and had started to look at fundamentals again. It hurts confidence a lot. \u201d<\/p>\n

When asked about the draft rules\u2019 impact, Tencent Games\u2019 vice president Vigo Zhang said Tencent will not need to fundamentally change \u201cits reasonable business model or operations\u201d for games, adding that the company has been strictly implementing regulatory requirements.<\/p>\n

Zhang added that minors had been spending a historically low level of money and time on Tencent\u2019s games since 2021 when minor protection became a focus for Beijing.<\/p>\n

NetEase declined to comment. Beijing has become increasingly tough on video games over the years. In 2021, China set strict playtime limits for under 18s and suspended approvals of new video games for about eight months, citing gaming addiction concerns.<\/p>\n

Although the crackdown formally ended last year with the resumption of new game approvals, regulators have continued to impose restrictions to curb \u201cin-game\u201d spending.<\/p>\n

The new rules revealed on Friday are the most explicit yet aimed at curbing in-game spending. Besides banning reward features, games are also required to set limits on how much players can top up their digital wallets for in-game spending.<\/p>\n

\u201cThe removal of these incentives is likely to reduce daily active users and in-app revenue, and could eventually force publishers to fundamentally overhaul their game design and monetisation strategies,\u201d said Ivan Su, an analyst at Morningstar.<\/p>\n

Games are also banned from offering probability-based lucky draw features to minors, and from enabling the speculation and auction of virtual gaming items.<\/p>\n

But the new rules included a proposal that is widely expected to be welcomed by the industry, requiring regulators to process game approvals within 60 days.<\/p>\n

Meanwhile, Chinese regulators announced on the same day licences for 40 new imported games for domestic releases, seen as a signal of Beijing\u2019s willingness to allow more games in the country, despite the draft rules on game spending.<\/p>\n

The new rules also reflect Beijing\u2019s concerns over user data, requiring game publishers to store their servers within China. The administration is seeking public comment on the rules through Jan. 22, 2024.<\/p>\n

As a result of Beijing\u2019s crackdown on gaming in 2021, 2022 was the Chinese gaming industry\u2019s most difficult year on record as total revenue shrank for the first time.<\/p>\n

China\u2019s video game market returned to growth this year as domestic revenue rose 13% to 303 billion yuan ($42.6 billion), according to Industry association CGIGC.<\/p>\n

The harsh draft rule also cast a shadow on gaming stocks globally. U. S. gaming stocks Roblox (RBLX. N), Electronic Arts (EA. O) and Unity Software (U. N) slipped between 1.7% and 3.1% on Friday, while in Europe, French video games developer Ubisoft (UBIP. PA) was down more than 3%.<\/p>\n

For More News And Analysis About Mauritius<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mauritius. Chinese regulators announced on Friday a wide range of rules aimed at curbing spending and rewards that encourage video games, dealing a blow to the world\u2019s biggest games market, which returned to growth this year. The new rules, which will effectively set spending limits for online games, sparked panic among investors, wiping […]<\/p>\n","protected":false},"author":84,"featured_media":38132,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,9],"tags":[233,245,332,241],"class_list":["post-38133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-miscellaneous","tag-africa-press","tag-africa-press-mauritius","tag-chinese","tag-mauritius"],"yoast_head":"\nChina announces rules to reduce spending on video games - Mauritius<\/title>\n<meta name=\"description\" content=\"Chinese regulators announced on Friday a wide range of rules aimed at curbing spending and rewards that encourage video ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China announces rules to reduce spending on video games\" \/>\n<meta property=\"og:description\" content=\"Chinese regulators announced on Friday a wide range of rules aimed at curbing spending and rewards that encourage video ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2\" \/>\n<meta property=\"og:site_name\" content=\"Mauritius\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-23T10:08:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-23T10:34:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/12\/sm_1703314983.832873.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1756\" \/>\n\t<meta property=\"og:image:height\" content=\"1170\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"China announces rules to reduce spending on video games\",\"datePublished\":\"2023-12-23T10:08:27+00:00\",\"dateModified\":\"2023-12-23T10:34:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2\"},\"wordCount\":701,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/12\/sm_1703314983.832873.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Mauritius\",\"Chinese\",\"Mauritius\"],\"articleSection\":[\"all news\",\"miscellaneous\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2\",\"url\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/china-announces-rules-to-reduce-spending-on-video-games-2\",\"name\":\"China announces rules to reduce spending on video games - 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