New Guidelines to Control Gaming Habits
China’s National Press and Publication Administration Introduces Stricter Regulations
China has introduced proposed rules for online gaming, aiming to regulate purchases and curb excessive playing behavior. The guidelines, issued by the National Press and Publication Administration, are open for public feedback until January 22. Companies may face restrictions on offering incentives for daily gameplay or in-game purchases. The regulations also limit the frequency of adding funds to online accounts, known as wallets, and highlight the dangers of irrational gaming behavior that can lead to addiction.
Government Warns Against “Illogical” Actions
Stringent Measures to Safeguard Public Order
The government emphasizes the prevention of “illogical” actions in gaming and bans content that endangers public order. Companies are required to send warning messages to users displaying irrational playing behavior. To enhance data security, the regulations mandate game publishers to store servers within China. The announcement led to a significant drop in shares for major Chinese gaming companies, including a 16% decrease for Tencent and a 25% fall for NetEase.
Continuation of Gaming Regulations
Impact on Industry and Company Responses
These proposed rules follow 2021 regulations limiting online gaming for young people to three hours per week. Chinese gamers must provide identification when registering online. Despite concerns in the industry, Steven Leung of UOB Kay Hian suggests that the potential impact is more of a policy threat than the regulation itself. Tencent Games’ Vice Chairman, Vigo Zhang, reassures that the company’s business model won’t need significant changes, as it has been compliant with existing regulations. The industry anticipates a key rule requiring regulators to review game approvals within 60 days, while on the same day, China approved the release of 40 new imported games.
