In a strategic move, China’s press and publications regulatory body has given the nod to 105 new online games, signaling robust support for the sector following recent regulatory apprehensions that precipitated significant financial setbacks for leading game developers.
The National Press and Publication Administration conveyed its endorsement via a statement on Monday, emphasizing that these approvals from the Game Working Committee of the China Music and Digital Association are instrumental in fostering a thriving and sustainable online gaming ecosystem.
Prominent titles like Tencent’s “Counter War: Future” and NetEase’s “Firefly Assault” secured approval amidst this regulatory shift.
Last Friday witnessed a tumultuous downturn for gaming giants like Tencent and NetEase, with share values plummeting, resulting in colossal financial implications and diminishing the Chinese stock indices. Specifically, NetEase observed a 16.1% decline in its Nasdaq-traded shares and a 25% drop in its Hong Kong listings. Tencent’s shares depreciated by 12%, and Huya Inc. saw a dip of 10.7% on the NYSE, collectively eroding billions in market capitalization.
While Hong Kong’s stock exchange remained shuttered on Monday due to the Christmas festivities, Shanghai’s market showcased stable pricing dynamics.
Highlighting the gaming industry’s vibrancy, the Press and Publication Administration disclosed that 2023 marked the issuance of 1,075 game versions, with a dominant 977 produced domestically and 98 sourced internationally. A pivotal “2023 China Game Industry Report” spotlighted that the sector raked in sales exceeding 300 billion yuan ($42 billion) this year, engaging a staggering 668 million gamers.
Echoing aspirations for the future trajectory, the Game Working Committee underscored the imperative for member entities to channelize resources towards crafting exemplary products, thereby augmenting the online gaming domain’s quality and cultural influence.
In recent times, China has instituted various regulatory interventions targeting the online gaming realm. Notably, 2021 witnessed stringent limitations on juvenile gaming durations and a subsequent hiatus in new game approvals, albeit resuming by April 2022 amidst a broader recalibration of the tech industry landscape.
