Regulator approves 105 video games for release
The mainland’s gaming regulator on Monday released a list of 105 newly approved video games, three days after a draft regulation sent gaming shares tumbling. The new list issued by the National Press and Publication Administration (NPPA), which regulates the country’s gaming sector, showed that industry leaders Tencent and NetEase were among the firms that had games approved. Tencent and NetEase saw their shares plummet by as much as 16 percent and 25 percent respectively on Friday following the announcement of the draft rules, as investors gauged the potential impact on earnings of the new regulations. State broadcaster CCTV said that the newly approved games marked the first time that “more than 100 games were approved for release at one time” with a wider range of gaming enterprises covered. “The latest approved games came after NPPA just approved a batch of games on December 22, which strongly showed that authorities are actively supporting the gaming industry development,” CCTV added. It also noted that a total of 1,075 games had been approved so far this year, compared with the 748 approved games in 2021. Domestic gaming revenues this year has exceeded 300 billion yuan for the first time while the user number reached a new high of 668 million. “With the stable approvals, more gaming enterprises are focused on market exploration, model innovation, self-research innovation, and scientific and technological innovation, while actively expanding the overseas markets,” CCTV said, adding that the “high quality development” has become mainstream among the gaming firms. Beijing’s draft regulations include limiting spending and rewards that encourage people to play video games, as well as time spent on the games, in a move that surprised the markets as well as industry players. In 2021, Beijing set strict time limits for players younger than 18 and suspended the approval of new video games for about eight months, citing concerns about gaming addiction.