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Video gamers in Shenzhen, China. Photo: Shutterstock

China resumes video game licensing after 8-month freeze in sign of regulatory easing

  • The National Press and Publication Administration (NPPA) published a list of 45 approved new titles on Monday
  • The freeze has dealt a heavy blow to the gaming industry, along with other measures aimed at bringing the sector to heel
Video gaming

The Chinese government has resumed licensing new video games, ending a freeze imposed last July and signalling that Beijing is now ready to ease regulatory pressure on the industry.

The National Press and Publication Administration (NPPA), which is in charge of licensing video games in China, published a list of 45 approved new titles on Monday. However, none of the newly-licensed games came from Tencent Holdings or NetEase, the country’s two biggest gaming companies.

The new games that secured approval include a number from Baidu, XD.com, Lilith Games and 37Games. The approved number of 45 is around half the 87 titles approved last July.

The NPPA traditionally publishes newly-licensed games on a monthly basis. Last year’s suspension was seen as a signal of official discontent with gaming content and the negative impact of video gaming addiction on the health of young people.

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The freeze, a few days shorter than the previous record, has dealt a heavy blow to the gaming industry along with other measures aimed at bringing the sector to heel. China currently restricts gamers aged under 18 to playing between 8pm and 9pm only on Fridays, Saturdays, Sundays and statutory holidays.

Meanwhile, Chinese censors have urged the country’s gaming studios to produce content that reflects positive social values and to avoid excessive violence.

About 14,000 small studios and video gaming-related firms – including those involved in merchandising, advertising and publishing – have shut down and been deregistered in the five months from July 2021, according to a report by state-run newspaper Securities Daily, which cited data from business registry tracking firm Tianyancha. That number signalled an acceleration from the 18,000 video gaming-related firms that went bust in 2020.

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Small and medium-sized gaming studios were hit particularly hard by the recent suspension of new licence approvals, according to You Haokun, a senior analyst at research firm LeadLeo.

“China’s video game industry is highly concentrated, and small and medium-sized studios have always faced a market environment with high competitive pressure and a harsh living environment, especially when the number of new titles is limited,” said You.

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