The right balance for video game industry in China
- China issues licences for new titles after publishers clean up their act and young enthusiasts learn to limit their playing time
People have a love/hate relationship with video games. Parents tend to hate them and children usually love them; and many adults, too. Economies can’t do without them, as the video gaming industry is worth billions. Many prolific players are treated like pop stars.
China has come up with its unique solution. Given its authoritarianism, its method may not be easily replicated elsewhere. But there is no denying that it is working and may even be seen as a compromise between paternalism and gaming enthusiasm.
Chinese authorities have approved 70 licences in November, after granting 73 in September. Following a 17-month drought, internet giant Tencent has finally received its first approval to start selling Metal Slug: Awakening, a run-and-gun title.
NetEase can also start selling its much-anticipated Monkey King’s Odyssey: Returning. That’s good news for the companies, as the licensing freeze has taken a heavy toll on their major source of earnings.
About 18,000 small studios and gaming-related businesses went bust in 2020, 14,000 in the second half of last year. Industry revenue shrank by 19.1 per cent to US$8 billion in the third quarter. Covid-19 pandemic lockdowns and other industry restrictions made it worse.
It appears the authorities are satisfied with the results of an ongoing campaign to clean up excessive sex and violence, and to promote “culturally appropriate” content in the mobile gaming industry.
With the support of many parents, the goal is to get game publishers to realise their social responsibility to limit addiction and expensive purchases, especially among young people.
The National Press and Publication Administration, which is in charge of licensing, has declared an initial victory. Three out of four under-18 gamers have limited their playing time to three hours a week. About 72 per cent of parents surveyed said video gaming no longer affected their children’s studies at school and daily lives.
Officials don’t want to kill the industry. It’s more about regulation so that the industry can be a showcase of creativity, innovation and global soft power without generating corrupting content. The industry can heave a sigh of relief if the authorities are saying they have arrived at that balance.
