Guangzhou lures video game, esports firms with cash incentives as Beijing softens hardline stance against the sector
- The plan encourages studios to develop original games that promote Chinese values and traditional culture, and promises cash prizes for selected winners
- The local government will also offer nearly US$700,000 to developers whose games have been selected for major esports events
Southern China’s Guangzhou city has rolled out plans to support the local video gaming and esports industry with cash rewards of up to 5 million yuan (US$690,950), in the latest sign of authorities adopting a positive tone towards the sector.
The Huangpu district in Guangzhou is aiming to build a so-called “10-minute service circle” for local gaming companies, providing support for licence applications, legal advice and talent training among other services, officials said in a press conference on Thursday, according to a report by state media outlet China National Radio (CNR).
The scheme was based on Huangpu’s 10-point plan released on Monday for the gaming and esports industry, which aims to attract three to five leading gaming firms to the district within three years, and make five to 10 games that create both economic and social benefits, according to a document released by the publishing authority of the district.
The local government is helping the gaming industry enhance its competitiveness in culture and “soft power”, according to the document.
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With an emphasis on social values in games, the plan encourages gaming studios to develop “original games” that promote Chinese values and traditional culture, and promises a cash prize of 300,000 yuan each for 10 games annually deemed as good examples.
The government will also offer up to 5 million yuan to developers whose games have been selected for major esports events. However, developers need to have a 1 billion yuan in annual sales to be eligible for the top cash reward.
High-level esports stadiums and top esports teams that relocate to Huangpu could also qualify for rewards or subsidies of 5 million yuan, according to the plan.
Separately, the city will establish the country’s first big data platform dedicated to the video gaming industry, which will provide guidance to companies on game development and facilitate the approval process for game publishing, according to the CNR report on Friday.
The latest incentives come amid the country’s softened stance towards the gaming industry, which has been under strict scrutiny to curb the perceived social ills of video game addiction among minors. Tempering that stance is Beijing’s desire to promote socialist values through video games.
The National Press and Publication Administration (NPPA), the regulator in charge of licensing video games in China, has been accelerating the approval of gaming licences in larger batches this year. Chinese authorities have been trying to restore confidence in the market after it suffered a major blow in December from draft regulations that aimed to curb “excessive” playing and spending.
