TECH NEWS: China considers revising gaming rules after tech giants lose billions

Chinese authorities are considering revisions to their recently drafted online gaming regulations after these proposed rules led to significant financial losses for major tech companies. The State broadcaster CCTV reported that the State Press and Publication Administration is open to revising and improving these regulations in response to the concerns and opinions raised by various parties.InformationGuideNigeria

The draft released on Friday introduced a range of rules aimed at reducing online spending and rewards in video games, which had an immediate and substantial impact on the gaming industry. This development caused a significant market value loss, estimated at around $80 billion, for China’s top companies in the sector, including Tencent Holdings and Netease.JAMB Portal

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Key aspects of the new rules include bans on common incentive mechanisms used in online games, such as rewards for daily logins, first-time spending, or consecutive spending. However, following the backlash, regulators may now alter sections of the draft that limit the ability to encourage daily logins and wallet top-ups.

China’s increasingly stringent stance on video games began in 2021 with severe playtime restrictions for minors and a suspension of new video game approvals. This crackdown led to a decline in total revenue for the Chinese gaming industry in 2021 and 2022. Although China resumed approving new games last year, the focus on limiting playtime and spending by minors has continued.JAMB Result

The latest draft also includes strict measures like banning probability-based draw features for minors and the auction of virtual gaming items, reflecting Beijing’s concerns over user data and requiring game publishers to store their servers within China.NYSC Portal

Despite these regulations, China’s video game market has seen growth this year, with domestic revenue rising by 13 percent.JAMB Portal

However, the global impact of these changes, particularly on U.S. and European video game developers, remains a concern, as indicated by the stock market reactions following the announcement.

The administration is currently welcoming public comments on the rules until January 22, indicating a potential for further amendments based on the feedback received.

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