China’s gaming regulator to restrict new games amid concerns over children’s health
Authorities have not approved any new game licenses since March, contributing to the slowest first half growth in China’s games industry in at least a decade
China’s new gaming regulator has been revealed after a months-long halt on approvals for new videos games triggered by a massive government shake-up. The State Administration of Press and Publications, directly under the publicity department of the Chinese Communist Party, will take over the role, highlighting the Party’s tightening grip over the gaming industry.
The revamp was confirmed for the first time in a document published Thursday on the website of China’s education ministry, which outlines how China would improve myopia among children and teenagers, under the direction of Chinese president Xi Jinping.
A section in the document stated that the organisation, sometimes referred to as GAPP for General Administration of Press and Publications, will “implement controls on the total number of online video games, control the number of new video games operated online, explore an age-appropriate reminder system in line with China’s national conditions, and take measures to limit the amount of time minors [spend on games].” The document was co-issued by the education ministry, the GAPP and six other government departments.
All games, even those offered for free, will be required to obtain a license to get published in China, the world’s largest gaming market, worth an estimated US$38 billion in revenue this year. However, authorities have not approved any new game licenses since the end of March, contributing to the slowest first half growth in the country’s games industry in at least a decade, according to data from researcher CNG.
China has the most rigorous game approval process of any major market, an extension of broader restrictions on television, newspapers and the internet.
Amid the regulatory hiatus, Chinese gaming giant Tencent suffered its first profit decline since 2005 on lower gaming revenue. After the education ministry’s latest announcement, Tencent’s Hong Kong-listed shares closed down 4.9 per cent to HK$340 (US$43) while rival Chinese games company NetEase fell 7.2 per cent on Nasdaq overnight. Tencent’s shares have fallen 21 per cent so far this year.