With 89 new video game licenses in June, and one for NetEase, China’s approved titles this year surpass 2022’s total

More than 85 domestic games have been approved each month in 2023, bringing the year’s total to more than 500
Beijing has kept a steady pace of approvals this year as the world’s largest video game market looks to get back on track after a 2021-2022 crackdown

Video gaming

Dylan Butts

Published: 5:30pm, 22 Jun 2023

Why you can trust SCMP

Chinese regulators have approved 89 new video games for sale in China for June, covering titles from major players – including Youzu Interactive and NetEase – as the world’s largest gaming market maintains momentum with new licenses.

The National Press and Publication Administration (NPPA), the agency responsible for licensing video games in China, published its latest list of approvals on Wednesday. It was the largest batch this year, by a single title. The numbers have been closely watched since an eight-month licensing freeze ended in April 2022.

Tencent Holdings, operator of the world’s largest video gaming business by revenue, was absent from the list this month. The company received one new license last month after a string of approvals earlier this year.

However, China’s second-largest video gaming company made the cut again this month, with NetEase’s Yanyun Sixteen Sounds getting a license for mobile and personal computers. The Hangzhou-based company had a strong start to the year, with first-quarter net profits surging 53.7 per cent year on year to 6.8 billion yuan (US$983.6 million).

Another title in the latest batch was Crimson Echo, a mobile game by Shanghai-based Youzu Interactive, also known as Yoozoo. A computer game called Island and Factory, from Shenzhen Zhongqingbao Interactive Network, was the only game approved that was not accessible on mobile.

The latest batch of games is in line with the steady pace of approvals this year. More than 85 games have been approved each month in 2023, rising from just a few dozen right after the NPPA resumed the monthly publication of the license list last year.

The crackdown in 2021 that froze approvals and limited minors to playing for just one hour a day, three days a week, caused widespread concern about the state of China’s gaming industry.

The NPPA has approved over 500 domestic games so far in 2023, compared with 466 domestic approvals for all of 2022.

01:32

China limits online gaming time for young people to 3 hours a week

In December, it approved 87 domestic titles and 44 that were imported. By comparison, the NPPA has approved just 27 imported games this year so far.

As Beijing has tightened its grip on online content in recent years, it has become more difficult for foreign games to get approval for monetisation in the mainland. All imported games must be “localised” with the help of a Chinese company and vetted by censors.

Mobile platforms have long been the dominant form of gaming in China, where titles like Tencent’s Honour of Kings and Peacekeeper Elite, the local version of PUBG Mobile, dominate the market in terms of revenue.

Chinese developers now account for 47 per cent of global mobile game revenue, according to a report this month from market intelligence firm Niko Partners.

While Tencent and NetEase remained the dominant players in 2022, accounting for more than 60 per cent of PC and mobile game revenue, their combined market share decreased from 2021 owing to weak performance from legacy titles and a lack of new launches, leaving smaller competitors to gain ground, according to the report.

As of last year, China had just over 700 million gamers across all platforms, which is expected to increase to 730 million by 2027, Niko Partners said.

Additional reporting by Xinmei Shen

Post