China presents new online game monetization rules in its market, reports Reuters. Additionally, the game must not reward daily connections or in-game spending for either first or repeat investments. The market immediately responded to the tightening of rules by falling in value of the two largest Chinese gaming companies.
Tencent And NetEase lost a total of approx. 80 billion dollars. Shares of the world’s largest company, Tencent, are down nearly 16%, and hugely expanding company NetEase has even fallen 25% this year. This should not be a reaction to the content of the regulation itself, but rather a reflection of the growing risk of regulation.
This is another significant restriction in the Chinese gaming market after the 2021 rulebook, which mainly affected underage players. Together with the Covid-19 pandemic, these factors have weakened the Chinese gaming market. This year is expected to be a year of growth again after a hiatus.
Along with new rules approved by the Chinese authorities license for 40 home games and they agreed license issuance period – 60 days from the application. It is the pace of licensing of domestic and foreign games that is accelerating and is one of the reasons for the growth of the Chinese gaming industry.
Source :Indian TV
