China’s gaming freeze in 2018 hits small-time developers hard

  • Regulatory freeze on new games compounded difficulties at Xiamen-based Feiyu, which saw revenue drop 37 per cent

Beijing tightened controls over video games last year to combat youth addiction. Photo: AFP

Last year was a lean year for China’s gaming industry because of a freeze on approvals of new titles. The impact was especially pronounced for smaller developers like Feiyu Technology.

The Hong Kong-listed games developer saw its revenue plunge 37 per cent to 83.3 million yuan (US$12.4 million) last year, the lowest level since its initial public offering four years ago, according to its filing to the stock exchange. The company made a net loss of 107.5 million yuan.

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